Kids savings accounts in Singapore
Give your children the best possible start to saving with a kids' savings account.
We all want our kids to grow into financially responsible adults — and a kid’s savings account is a great way to instill smart money habits early on. You child may not be earning an income anytime soon, but this doesn’t mean that they won’t be receiving ang bao (red packets) money from relatives and friends every Chinese New Year or birthday.
Find out how kids’ savings accounts work, what to look out for and how you can apply with your child in this guide.
What's in this guide?
How does a kids savings account work?
A kid’s savings account may offer a higher interest rate than a standard savings account, but it usually has more withdrawal restrictions depending on the type of account.
There are usually no monthly account fees charged, but there is a maximum age limit. When your child turns that age, the account will automatically switch to a default savings account offered by the bank.
There’s also no minimum age requirement on most children’s bank accounts, meaning they can generally be opened when your child is any age. Usually banks impose an age restriction on children being able to open an account themselves, so unless your child is above 16, you will need to open the account on their behalf.
Compare a range of kids savings accounts in Singapore
Disclaimer: Interest rates are applicable for deposits between S$1,000 and S$49,999. Interest rate and initial deposit are shown in Singapore dollars.
Please check with the provider for deposits and rates in other amounts and currencies.
How can my child benefit from having a kids savings account?
- Your kids can learn how to budget. Learning to budget is not just teaching your kids to put their money away, but also teaching them about spending needs and savings goals.
- Prepare your children to learn more about the economy. With an interest-bearing interest savings account, your child will learn about the concept of banking, interest rates, inflation, and how these are impacted by both the Singapore and global economy.
Factors to consider when choosing a savings account for kids
Here are some factors to consider when deciding on which savings account to choose for your child:
- Competitive interest rate. You may want to shop around for accounts with higher interest rates before making a decision. Some banks also offer promotional rates and other incentives, so it’s worth seeing what’s out there.
- How deposits are made. Teaching your kids to save regularly is a great financial skill. Start off by opening an account for your child and take him or her to the bank once a month to show them how to physically deposit their pocket money.
- Monthly fees. There is usually no account maintenance or fall-below fees for a kids’ savings account, but you should pay attention to any monthly withdrawal limits or fees.
- Minimum opening balance. Some kids savings accounts come with a minimum opening deposit, which may range from $500 to $1,000. So compare your options if you’re looking for an account that doesn’t have this requirement.
- Kids-related perks or educational programmes. Banks may provide attractive perks such as discounts and privileges at kid-related merchants, or even complimentary subscription for online educational portals.
Banks that offer kids savings accounts in Singapore
Compare the most popular kids savings accounts at a glance:
| Savings Account | Key Features | Interest rate (p.a.) | Initial deposit and minimum balance |
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| POSB My Account |
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| OCBC Mighty Savers Account |
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| UOB Junior Savers Account |
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| Citibank Junior Savings Account |
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| CIMB Junior Savers Account |
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| Maybank Youngstarz Savings Account |
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| Standard Chartered e$saver Kids |
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Note: The information provided above are accurate at the time of writing (28 July 2020) and is subject to change at the banks’ discretion.
Should I apply for a kids saving account for my child if I already have a CDA account?
To encourage couples in their decision to have more children, the Singapore government has a Child Development Co-Savings (Baby Bonus) Scheme in place to help ease the financial costs of starting a family.
If your child was born a Singapore citizen, you’ll be able to benefit from a cash gift and dollar-matching contributions that will be deposited into the scheme’s special co-savings account – the Child Development Account (CDA).
However, the CDA account is not an alternative to a kids savings account. Take a look at how they differ in this table:
| Child Development Account (CDA) | Kids Savings Account | |
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*Amount stated is based on first and second child tier of the Baby Bonus Scheme. |
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| Interest rates |
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| Withdrawal flexibility |
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| Spend restrictions |
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| Account validity |
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| Account transfer |
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As you can see, both the CDA and kids savings account are designed for different purposes. Money in the CDA can only be used to pay for educational and healthcare expenses at approved institutions, whereas funds kept in a kids savings account may be withdrawn anytime for any purposes.
So even if you’ve already set up the CDA account, it doesn’t mean that you no longer need a junior savings account for your child.
Pros and cons of kids savings accounts
Kid’s savings accounts have these benefits and drawbacks:
Advantages
- Cultivates good saving habits. By having their own account, kids are introduced to the concept of saving and budgeting. This also helps them develop a sense of financial responsibility.
- Interest bearing. By making small deposits each month, a child’s savings account could earn a decent amount in interest.
- Typically fee-free. Most junior savings accounts don’t charge any maintenance fees, or has fewer fees and costs than other types of accounts. However, do note that but some may still apply. Read the fine print and watch out for any minimum balance requirements, monthly statement fees and other charges.
- Low age requirements. Kids savings accounts usually have no minimum age, so you can open one even for a newborn as soon as you receive the birth certificate. These accounts do have a maximum age that can range anywhere from 12 to 18.
Disadvantages
- Restrictions. These accounts typically don’t come with a debit card, or only grant an ATM card when your child reaches a certain age (eg. 15 years old).
- Account transfer. Some banks will automatically convert the account to a regular savings account, granting your child full access to their savings when they’re of age. However, others may require you to transfer the funds to a new account yourself.
- Transaction access. Some accounts allow your kids to deposit or withdraw funds of their own volition, while others require a parent’s signature. Look into who’s required to legally sign their name in order to access funds.
- Age limit. By the time your child turns at least 18, they’re no longer eligible for a kid’s savings account. But some banks may have even stricter age requirements.
Requirements for kids savings accounts
Each bank sets its own rules and requirements when it comes to savings accounts for kids. In Singapore, most banks will require your child to be below 16 years old and you’ll have to be the child’s parent or legal guardian to open a kids savings account with your child.
You’ll typically be expected to provide the following documents:
Identification documents
- For child:
- Singaporean/PR: A copy of your child’s birth certificate or NRIC (if they are above 15 years old)
- Malaysian: A copy of your child’s Malaysian birth certificate
- Other nationality: Passport
- For parents and legal guardians:
- Singaporean/PR: NRIC
- Malaysian: Malaysian IC or passport
- Other nationality: Passport
Other required documents
- For Malaysians:
- Proof of residential address (dated within the last 3 months), such as utility bill, telco bill, bank statements or government letters
- Letter from current employer
- Other nationality:
- Valid pass issued by the Immigration and Checkpoint Authority of Singapore
- Proof of residential address (dated within the last 3 months), such as utility bill, telco bill, bank statements or government letters
Are there any caveats to look out for?
Parents won’t have to worry about their child losing money with a savings account, as deposits of up to $75,000 are insured by the Singapore Deposit Insurance Corporation by law. However, you should consider other risks that may come from managing a child’s savings account:
- Ability to limit withdrawals. As your child grows and is given more access to the account, they could fall into the habit of making frequent withdrawals from it. If you believe this may be an issue for your child, look for an account that limits access.
- Introductory interest rates. If the account offers attractive introductory interest rates, make sure to scrutinise the terms and conditions for the revert rate before committing to it.
*Do take note that the following deposit types are not insured: foreign currency deposits, dual currency investments, structured deposits and other investment products.
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