Best Children’s 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.

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 on the value of savings. 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.

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: Scotiabank Youth Savings Account

Additional Transaction

US ATM fee

$3

Overdraft interest

21.00%

Overdraft fee

$5

Monthly Fee

$0

Interac e-Transfer

$1

Transactions

Unlimited

Free!
0

Specification: TD Bank Youth Savings Account

Monthly Fee

$0

Insurance

CDIC Insured

Interest Calculated

Daily

Interest Paid

Monthly

0

Specification: CIBC Advantage for Youth Account

Additional Transaction

US ATM fee

$3

Overdraft interest

21.00%

Overdraft fee

$5

Monthly Fee

$0

Interac e-Transfer

$1.50

Transactions

Unlimited

Free!
0

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.

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:

  • Passport
  • 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.

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