As the Lunar New Year approaches, families across the globe are gearing up to celebrate the Year of the Dragon with joyous festivities, delicious feasts, and the timeless tradition of ang bao giving. For children, the anticipation of receiving these vibrant red envelopes is not only about the excitement of the moment but also an opportunity to embark on their journey toward financial literacy and responsibility.
In the spirit of Li Chun 2024, where the alignment of stars is believed to bring good fortune and prosperity, parents are presented with a unique chance to instill lifelong money management habits in their little ones. One of the most thoughtful ways to utilize those ang bao gifts is by guiding children towards the world of savings accounts – a foundation for financial success.
Why Its Important To Deposit Ang Bao Money In Savings Account?
Image courtesy: Stock image
If this is your first foray into money parenting, let us quell any jitters you may be feeling. Eastspring Investments’s recent study showed that over half of the 10,000 parents surveyed doubt if they’ve been successful role models for their kids when it comes to money management.
But you’re definitely on the right track by opening and subsequently depositing their ang bao collection.
Not only does it help to build up funds securely with the help of attractive interest rates — a perk no piggy bank can offer — it also teaches them invaluable saving habits, the very foundation one needs to develop a good grip on their finances.
Moreover, when your child comes of age, you can easily hand the reins over to them as they start navigating the realm of online banking, learn to make their own deposits and handle transactions with a debit or credit card.
In time, they’ll be able to bump up their interest rate when they convert to a high-yield savings account once they reach the age requirement.
Li Chun 2024: Best Saving Accounts For Your Kids’ Ang Bao Stash
Here, we’ve put together the very best savings account for this occasion.
|
|---|
| Name of Savings Account |
Interest Rate |
Key Benefits |
Minimum Deposit |
Age Requirement for Child |
Fees & Charges |
| POSB My Account |
0.05% p.a. base interest
Up to 0.25% p.a. |
Start an account with $1 gift deposit
Able to convert My Account to a DBS Multiplier Account
Coin deposit fee not needed (Pocket money-friendly!)
Exchange and save up to 13 different currencies
Get a free POPULAR student membership for one year.
Coin deposit fee not required |
Initial deposit not required |
Parent – 18 years and above
Child – below 16 years
|
No account fee if you use eStatement
S$2 monthly if you use paper statement and is waived only if you’re 16 years old and below
|
| OCBC Mighty Savers Account |
0.05% p.a. base interest
Up to 0.20% p.a. |
Avoid queues by getting your child vaccinated at home via our partnership with Doctor Anywhere. To qualify, save S$600 with OCBC Mighty Savers Account or OCBC Child Development Account this Lunar New Year, applicable for Singaporean children aged 2 to 59 months. |
Initial deposit not required |
Below 16 years old |
Service fee waived |
| UOB Junior Savers Account |
0.05% p.a. base interest
Up to 0.20% p.a.
|
With UOB Lady’s Savings Account, you can earn 1% cash reward on funds deposited into your joint Junior Savers Account with your child every month
No min. deposit amount required
Enjoy free coverage of up to 100% of your Junior Savers Account deposit balance. The more you save, the more coverage you get. |
$500 |
Below 16 years old |
$2 minimum balance fee if balance is below $500 |
| CIMB Junior Saver Account |
0.20% p.a. base interest
Up to 0.80% p.a. |
Open your child’s Junior Saver account online
Attractive base interest rate
|
$1,000 |
Below 12 years old |
Min. amount to earn interest: $1,000
No fall below fee
Early account closure fee (within 6 months): $50
Monthly account fee: $1 |
| Maybank Youngstarz Account |
0.1875% p.a. base interest |
Attractive base interest and enjoy up to 3X interest with Maybank Family Plus
Exclusive privileges1 during your child’s birthday month
Hand, Foot & Mouth Disease Hospitalisation and Outpatient Insurance
Free Personal Accident Insurance coverage for you and your child
|
$10 |
Below 16 years old |
Early account closure fee (within 6 months): $30
No fall-below fee |
Is there a more approachable financial institution than POSB?
A true blue icon that’s practically embroidered in our nation’s fabric, you may want to consider opening up POSB’s My Account . With no minimum initial deposit and age requirement, you can focus on growing your money — whether big or small — without incurring miscellaneous costs that could chip away at your savings.
The wide range of perks that comes with being an account holder beats the other contenders on this list, ranging from multi-currency capabilities and even a complimentary POPULAR membership for a year.
In anticipation of the Year of the Dragon, parents can delight their children with an exclusive Mighty Savers® collectable. This Lunar New Year, young savers are in for a treat as they can receive either a Mighty Savers® “Year of the Dragon” Simon or Sally plushie. The promotion offers one plushie for those who deposit a minimum of S$600 in fresh funds, while those who deposit at least S$1,200 can enjoy the company of two adorable plushies.
Branches will begin the redemption of these limited-edition collectables starting from 1 February 2024, providing a special and memorable way for children to celebrate the Lunar New Year while fostering good savings habits.
For individuals who have deposited S$500 into the joint Junior Savers Account with their child in March 2023, the top-up for March must lead to a corresponding increase in the Junior Savers Account balance by the end of March 2023 compared to the month-end balance in the previous month (i.e., February 2023). For instance, if the month-end Junior Savers Account balance on 28 February 2023 was S$5,000, the minimum month-end balance on 31 March 2023 should be S$5,500 (S$5,000 + S$500).
If the Lady’s Savings Account balance on 31 March 2023 is $20,000, the account holder will receive a S$5 cash reward (1% of S$500) for their Lady’s Savings Account in March 2023. Continuously topping up S$500 into the Junior Savers Account each month could earn up to S$50 in cash rewards by 31 December 2023.
At 0.20% p.a. interest rate, CIMB Junior Saver Account starting interest is on par with the highest interest tier on other accounts, in which you would typically need an account balance of over a million dollars to unlock (yikes).
Impressively, the account’s clear stand-out is its highest interest tier which totals up to 0.80% p.a. There’s no fall below fees to worry about. However, the required age is the lowest out of the bunch — 12 years and below — which means it’s best to open this account as early as possible before your child misses the window. There’s also the dreaded monthly account fee and hefty account closure fee to contend with.
There’s much fun to be had as a Maybank Youngstarz Account holder. Besides enjoying a decent base interest, you’ll also be privy to exclusive privileges that your kids will surely love, such as POPULAR vouchers worth $30 and birthday deals at Pororo Park Singapore.
Complimentary insurance coverage for Hand, Foot and Mouth Disease Hospitalisation and outpatient care is nothing to sneeze at either. If you’re able to keep a considerably high but attainable account balance (qualifying amount is $5,000 or more), you can look forward to worldwide personal accident insurance coverage for both you and your child.
This article was first published on SingSaver and republished on theAsianparent with permission.
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