A children’s account is a bank account designed for individuals below the age of 18. The account works like a regular account, but with a few restrictions depending on which bank you have opened your account. Children’s accounts are made available to train kids and teens under the age of 18 the value of savings.
Compare the best children’s savings account in Canada
Money experts have it that every parent needs to open a bank account for their kids as it is a great way of educating them about financial management skills. There are different Children’s Account Canada that you can open for your kid, but you have to know their features and identify one that best suits your kids.
Specification: CIBC Advantage for Youth Account
|Transactions included per month||
Applicant must be age 18 or under
|Additional Transaction Charges||
|US ATM fee||
Children account overview
Most of the Canadian banks provide children with accounts at no fee. They are pretty the same with a few key differences. These particular key features are what you should be looking for before opening a Children’s Account Canada.
However, going through the abundant information provided by banks is certainly what most people can’t afford hence it sounds more logical and economical to check the already prepared comparisons of the different accounts from different banks.
Compare Children accounts
Most banks in Canada including the major ones don’t charge any fee to open up a Children’s Account Canada, though some offer certain restrictions. Top banks which you might want to have a look at including HSBC, CIBC, Tangerine (formerly ING Direct), RBC, TD and Scotia.
Each has its own features with some offering the accounts to their customers only, such as Tangerine. Some key features to look for include no fees, easy access, attractive interest rates and unlimited debit transactions.
What are the typical Children’s account interest rates & fees?
As far as the said key features are concerned, CIBC children’s account stand out from the rest. The bank’s children account is called Advantage for Youth and offers an interest rate of 0.05% and unlimited debit transactions. On the other hand, Tangerine offers the highest interest rate of 2.0% but the account is allowed for their customers only.
There are also no minimum balance requirement and no debit card. HSBC children’s account is available to the kids of premier clients with personal investments and deposits exceeding $100,000.
The Leo Youth Saver account of RBC on its part offers something attractive, but with a very low-interest rate of 0.01% and debit transactions that are limited. TD’s Youth Stepping Stone account offers a 0.05% interest rate but with unlimited debit transactions. Scotia offers no interest rate and limited debit transactions.
How to open a bank account for your child?
Just like parents, children are also susceptible to society’s consumer habits. Starting from an early stage, children tend to develop a liking for the latest electronic gadget and trendy clothes to name the least. If started at such an early age, the habit can grow and stick. To help your children and probably prevent them from falling into the cycle of debt, it is very important to show them the value of saving money. Opening a bank account for your child is a great option for setting an example for saving money.
With the number of banks offering such account opening options, it is very easy to get a Children’s bank account opened.
When looking for a bank to open an account with, it is very important to look for a bank that offers a no-fee account probably with a passbook/monthly statement and unlimited transactions. Passbooks are important as they allow your child to approach the bank, transact and still manage to keep track of their bank balances.
Opening a bank account
To open a bank account for your child, you need to visit your bank in advance and check the different types of accounts available. Chances are that you’ll be surprised by the different incentives on offer, particularly for juvenile accounts. Most banks view children’s accounts as PR expenditures which is aimed at next-generation customers.
Choose a particular account option with your bank and set up an appointment. Your next visit should be with your child if possible. Give the bank an opportunity to explain day-to-day banking to your child. This way, your child will be introduced to the real banking experience which is usually exciting to most children. You could also get the bank to plan and structure your child’s savings account.