Best Savings Accounts for Kids to Grow Your Child’s Money 2023

Opening a separate savings account for your child teaches them to become financially wise and responsible–traits that are early enough to be taught. 

The money they have in a piggy bank received through ang baos, or the simple handing over of cash gifts from relatives, is a good start in growing their future financial wealth. 

In Singapore, a child must be 16 years old to be eligible to open up an account. Consider going for a joint account so your children can start the habit of saving early on. 

Skip through the challenges of finding the best kids savings account since they’re all compiled in this article. 

What Are Your Goals for Your Child’s Savings Account?

Starting a child savings account comes with a lot of good reasons. You’re paving the way for them to become financially secure while allowing them to learn how to make responsible decisions regarding their resources. 

Here are the common goals for your child’s savings account:

• To save money for short-term goals: Let them understand that acquiring what they want requires hard work. With a savings account, they can save a portion from their allowance. Gradually, they can ultimately reach the amount they need effectively in contrast to using a piggy bank.
• To learn how banking works: Your kid can have a grasp on how the cash deposit, withdrawal, or online banking processes go at a young age. Later on, this builds their confidence until they no longer require an adult to accompany them in banking transactions. 
• To learn more about money and finance: Teaching your kid about money and personal finance eases your concerns regarding their future financial situations. Banking enables them to learn the different strategies to grow their money better, understand how compound interest works, and understand the different financial accounts.  
• To help them develop a habit of saving money: This builds them up in preventing financial troubles. If they have a fallback, having extra funds can give them the support they need. 

7 Factors to Consider Before Opening a Kid’s Savings Account

Before you and your children go ahead and open regular savings accounts for kids, it’s important to look over several features a certain bank offers. This way, you could determine which bank can better cater to your child’s needs.

Here are the 7 factors you must consider before opening a kid’s savings account:

1. Online Banking App

Online banking makes bank account transactions convenient. Although each bank’s online bank app has different features, the primary functions, such as depositing or transferring money to other bank accounts, should be present. 

2. Automatic Savings Plan 

Take advantage of what some banks offer, so you don’t have to deal with hassles in depositing money to your kid’s account. The automatic savings plan lets you transfer a certain amount to your child’s savings bank account monthly. 

3. ATM Card

Instead of going over-the-counter transactions to withdraw cash, your child can use an ATM card in any ATM machine anytime and anywhere. 

4. Financial Literacy Apps

Learn how banking processes go by installing interactive financial literacy apps or websites with your kid. 

5. FDIC Insurance 

Double securing your child’s financial security happens if it’s free insurance coverage. The bank guarantees the deposits in case anything happens, such as the bank getting robbed or facing bankruptcy.

6. Savings Goals

It’s always beneficial to set up multiple accounts for different savings goals. These savings goals make it easier to track their savings progress. 

7. Security 

Your child’s own savings account should be thoroughly secure from hackers and undesirable activities that could lead to financial loss. 

These are just some factors you need to consider before ultimately opening a savings account for your child. Take note that some other banks may have more added features, so choose only the best.

See Also: Best Financial Advisor in Singapore and Maybank Save Up Savings Account

The Best Savings Accounts for Kids for 2023

At a Glance

Name of Savings Account	Interest Rate	Minimum Deposit	Age Requirement for the Child	Fees & Charges
POSB My Account	0.05% p.a. Balance interest rate	No initial deposit required	No age requirement	$2 account fee for holders above 16 years old No coin deposit fees
POSB Smiley CDA	2% p.a.	No initial deposit required	Below 12 years old	Coin deposit fee waived
Maybank Youngstarz Account	0.1875% p.a. base interest Up to 0.3750% p.a.	$10	Below 16 years old	Early account closure fee of $30 (within 6 months) No fall below fees
Citibank Junior Savings Account	0.05% p.a. base interest rate Up to 0.10% p.a. Interest rates	No initial deposit required	Below 18 years old	Service fee waived No fall below fees
HSBC Premier Lite Savings Account	1.85% interest rate	$1,000	Individuals (residents/non-residents) aged 16 and above	Early account closure fee of $50 (within 6 months) Min. of $5 fee if the average daily balance falls below $2,000
UOB Junior Savers Account	0.05% p.a. base interest Up to 0.10% p.a. interest rates	$500	Below 16 years old	$2 fee if the balance is below $500
UOB Child Development Account	2% p.a.	No initial deposit required	Below 12 years old	Contact a UOB Personal Banker for the fees and charges
OCBC Mighty Savers Account	0.05% p.a. base interest Up to 0.20% p.a. interest rates	No initial deposit required	Below 16 years old	Service fee waived
Standard Chartered e$aver Kids Account	Up to 0.05% p.a.	No initial deposit required	Below 18 years old	Min. standard monthly contribution of $50 No monthly fees No early account closure fee (within 6 months)
CIMB Junior Saver Account	0.20% p.a. interest Up to 0.40% p.a. interest rates	$1,000	Below 12 years old	$1,000 balance required to earn interest No fall below fees Early account closure fee of $50 (within 6 months) No monthly account fee

1. POSB My Account

For parents looking to maximize their children’s savings growth without additional costs, this CDA account is the go-to choice. POSB My Account can also work as a joint account so parents or guardians can help their child to further their financial funds. 

Interest p.a.: 0.05% p.a. balance interest rate

Minimum initial deposit: No initial deposit required

Age requirement: No age requirement

Fees & Charges: $2 account fee for holders above 16 years old; No coin deposit fees

Pros

• Can save in 13 different currencies
• POPULAR 1-year student membership complementary benefit

Cons

• Comes with a $2 fee for account holders above 16 years old

2. POSB Smiley CDA

Earn more for your child as the government applies a dollar-to-dollar matching grant for your children, depending on their birth order. The funds can be used before your child turns 12. Once they’re over 12, the remaining balance is transferred to their Post-Secondary Education Account (PSEA).

Interest p.a.: 2% p.a.

Minimum initial deposit: No initial deposit required

Age requirement: Below 12 years old

Fees & Charges: Coin deposit fee waived

Pros

• No initial or minimum deposit needed
• Opening an account can be done 2 months before giving birth
• No fees and charges apply when using a coin-depositing machine

Cons

• Not eligible for bankrupt parents or guardians

3. Maybank Child’s Youngstarz Savings Account

Experience high-interest rates with just a balance of $50,000 with Maybank Youngstarz Account. This comes with exclusive birthday privileges and outpatient insurance or daily hospitalisation cash benefit under certain terms. 

Interest p.a.: 0.1875% p.a. base interest or up to 0.3750% p.a.

Minimum initial deposit: $10

Age requirement: Below 16 years old

Fees & Charges: Early account closure fee of $30 (within 6 months); No fall below fee

Pros

• Offers one of the highest balance interest rates
• It also comes with personal accident insurance in a lump sum payout
• No fall below fee if minimum or average daily balance on existing account is not maintained

Cons

• Early closure requires a $30 bank fee

4. Citibank Junior Kids Savings Account

This junior savers account is where you can acquire 0.10% interest rates with just a balance of $30,000. On top of that, your child is guaranteed to have their own ATM card, which applies internationally, once they turn 15. 

Interest p.a.: 0.05% p.a. base interest rate or up to 0.10% p.a.

Minimum initial deposit: No initial deposit required

Age requirement: Below 18 years old

Fees & Charges: Service fee waived; No fall below fee

Pros

• No service fees apply
• No initial or minimum deposit balance required

Cons

• A fall below fee of $15 is charged if the parent or guardian and child’s total account is below $15,000

5. HSBC Premier Lite Kids Savings Account

Wherever you decide to relocate, this kids savings account allows you to store your savings in one place. You can also choose among four currencies: GBP, US dollar, AED, and HK dollar.

Interest p.a.: 1.85% interest rae

Minimum initial deposit: $1,000

Age requirement: Individuals (residents/non-residents) aged 16 and above

Fees & Charges: Early account closure fee of $50 (within 6 months); Min. of $5 fee if the average daily balance falls below $2,000

Pros

• Let your child enjoy their savings in 4 currencies
• Enjoy a preferential rate when your account reaches 2,500 GBP or of the same currency equivalent

Cons

• Early closure requires a $50 bank fee
• Requires a maintaining balance of $2,000

6. UOB Junior Savers Account

Transfer funds to grow your child’s money through the bank’s automatic transfer process. You can also enjoy up to 0.10% annual interest with guaranteed insurance coverage based on your deposit balance. 

Interest p.a.: 0.05% p.a. base interest or up to 0.10% p.a.

Minimum initial deposit: $500

Age requirement: Below 16 years old

Fees & Charges: $2 fee if the balance is below $500

Pros

• Available mobile banking application
• Automatic monthly transfers from parent/guardian to child’s account

Cons

• Free insurance coverage applies only while maintaining a $3,000 balance on the account

7. UOB Child Development Account (CDA)

Celebrate new beginnings with your little one and start paving their journey in a more established financial pathway. With this CDA account, you can earn at least 2% annual interest with a first-step grant of $3,000 upon opening the account. 

Interest p.a.: 2% p.a.

Minimum initial deposit: No initial deposit required

Age requirement: Below 12 years old

Fees & Charges: Contact a UOB Personal Banker for the fees and charges

Pros

• High-interest rates
• Comes with a baby bonus card
• Experience the dollar for dollar matching grant
• Enjoy the first-step grant that’s automatically credited to your child’s account

Cons

• None to state

8. OCBC Mighty Savers Account

Enjoy the 0.20% interest rate based on your balance without going through being charged by pesky fees. To up the potential interest rates, avoid withdrawing in the first month and open an OCBC Child Development Account (CDA).

Interest p.a.: 0.05% p.a. base interest or up to 0.20% p.a.

Minimum initial deposit: No initial deposit required

Age requirement: Below 16 years old

Fees & Charges: Service fee waived

Pros

• No service charges
• Priority queue service
• No initial deposit needed
• Skip the long line when doing Sunday transactions in a brick-and-mortar OCBC bank branch

Cons

• Recommended not to withdraw in the first month

9. Standard Chartered e$aver Kids Account

Standard Chartered e$aver Kids Account understands that every child has different spending habits. Regardless, get to enjoy several perks, such as no initial deposits required and no minimum balance to maintain. 

Interest p.a.: Up to 0.05% p.a.

Minimum initial deposit: No initial deposit required

Age requirement: Below 18 years old

Fees & Charges: Min. standard monthly contribution of $50; No monthly account fee; No early account closure fee (within 6 months)

Pros

• Flexible withdrawals
• No initial deposit needed
• No-hassle account maintenance

Cons

• Requires a monthly contribution of $50

10. CIMB Junior Saver Account

Enable your child to enjoy a competitive interest rate, discounts, event invitations, and privileges. Lie if more fun and rewarding with the CIMB Junior Savings Account, especially since it has competitive interest rates of 1.68% annually. 

Interest p.a.: 0.20% p.a. base interest or up to 0.40% p.a.

Minimum initial deposit: $1,000

Age requirement: Below 12 years old

Fees & Charges: $1,000 balance required to earn interest; No fall below fee; Early account closure fee of $50 (within 6 months); No monthly account fee

Pros

• Easy account maintenance than most banks
• Benefits for accidental death and permanent disablement
• The interest rate is computed daily and credited to your account monthly

Cons

• Requires a $1,000 maintaining balance
• $50 account fee for early account closure

How to Apply for a Young Savers Account?

Make an appointment and visit your local bank to start the application for a young savers account. If required, you must bring primary documents such as proof of identity and the initial deposit fund. Once the account is set up, your child starts to experience all the perks that come along with the Young Savers Account!

Closing

There’s no better way to ease your concerns regarding your child’s future. One way to alleviate any potential financial stress that may come their way is by setting up a kids savings account. It should be done with not just any bank but the one that provides the most perks and higher interest rates. 

Key takeaways

• The best kids savings accounts for kids come with high balance interest rates and features that enable them to learn about financial management.
• Make use of CDA advantage bonus interest and grants your child can receive and continuously deposit them into their savings account. 
• Automatically convert the kids savings account into a regular savings account once they reach certain age limits to further their finance’s potential. 

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