Best Children & Youth Savings Accounts in Canada
Youth savings accounts are offered by banks to Canadian users aged 18 years and under. These accounts have a range of features designed to train young people about the importance of saving and how to manage money. Although these accounts don’t have a high rate of interest, they have various other benefits that you might find interesting. Parents may want to go through the application procedures with their kids and show them how to compare different rates of interest to find the best options out there. A good starting point is our page at offerhub.ca.
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Specification: HSBC Youth Savings Account
Specification: TD Youth Account
Specification: TD Bank Youth Savings Account
Advantages of a youth savings account.
- High or unlimited number of transactions permitted each month
- No requirement for maintaining a minimum balance
- No transaction fees
- Online banking facilities
If you’ve been looking for options other than youth savings accounts, here are a few other savings tools you can consider.
- High-interest savings account – While these accounts do offer a high rate of interest, users need to be at least 18 years of age to open the account.
- Tax-free savings accounts – Only Canadians who are above the age of 18 years can open the account. A form of registered savings account, TFSAs carry no tax on the interest you earn.
We all want the best for our children. This can explain why once they are born, as parents we want to set aside some funds for their future needs. In some cases, a minor might receive an inheritance from their grandparent to trigger you to ask yourself ”what is the best account for a child to save in?” In Canada, banks have provided us with channels that can allow parents to invest for their children. Since such investments are always long term, it is normal for parents to try and find a children’s account that offers the most attractive benefits.
The Best way to start a Children’s Account with competitive interest rates
Money management is a skill that evades most people. The best way to introduce your child to this skill is by opening up a savings account on their behalf. This way, your child will get used to the habit of saving and help themselves build future savings.
What are some of the best savings accounts for children?
Being saving accounts for children, most Canadian banks and credit unions try to encourage savings by offering no-fee savings accounts for children. It goes a long way in getting them started. Most of the accounts are quite similar across the board but still hold their own important differences. In order to find the best saving account for your child, you need to pay attention to the smaller details.
To open a children’s savings account a parent will need to have their child’s Social Insurance Number with any of the documents listed below:
- Birth Certificate
- Canadian Driver’s License (if applicable)
- Proof of Citizenship
For children under 12 years, these accounts are opened as joint accounts with their parents or guardian who is of majority age. This account is aimed at supporting a child hence is known to come with some lucrative offers. A child can continue using this account until when they are about to join a college that is when they can upgrade to a students account.
Children’s bank accounts are an excellent way to prepare for your child’s future. But what are the options when it comes to the accounts? What sort of variants should be reviewed before making a decision regarding what children’s account to open? At first glance, children’s bank accounts may seem perfect, but there are various factors at play. We will review a few major factors that play a role in the usefulness and effectiveness of a children’s bank account.
One of the most important aspects of children’s bank accounts is the rate at which it grows. The purpose of opening a children’s bank account is so that money you deposit for your child can grow over time. Interest rates determine how quickly the money will grow over the course of your child’s young life.
Since the money will grow for twenty years, a steady interest rate it is more important than a high-interest rate. An interest rate fluctuates constantly between zero and two is less reliable than a rate guaranteed to stay at one.
Finding the Best Children’s Bank Accounts
Some banks promise that interest will always be at least a certain number, but that it could go above that. This is more reliable than a number without a guaranteed amount. Since the money should grow over several years, accounts with steady interest rates are wiser than accounts with fluctuating rates.
The trustworthiness of the bank should play a crucial factor in deciding what children’s bank accounts to open. Be sure to research other’s the experiences regarding their own children’s bank accounts with the bank that you are considering. If the bank doesn’t have a good reputation, it would be wisest to look elsewhere.
Your child’s future is important, and it is wise to save for that future. Children’s bank accounts are a great way to prepare financially for your child’s future. However, the decision should not be taken lightly. It is a good idea to do research and consider your options before making a decision when investing your money.