Types of Account to Open for your Kids

Instead of that piggybank you got for your child to always drop money, the world has become more civilized, you call easily open an account for them without having to visit the bank. There are several accounts you can open for your children in order to teach them the habit of saving. Though the accounts would be in control of the parents. Parents can even save up their children’s school fees in the children’s account most especially during the long holiday.

Different banks in Nigeria operate accounts for children and they each have their names different from the normal savings account. Saving has a lot of benefits such as helping to solve unforseen situations, teaching the child the morals of saving and cautioning the child on the habit of spending. Saving can also help our children to be independent i.e not to depend on anyone by teaching them that they can actually get things they wish to have by saving up to buy them.

Benefits of Opening an Account for your Child

  • Children account does not attract charges such as maintenance fee unlike the normal savings account where you have to pay charges even when you make transactions within the same bank.
  • Another benefit is that you can easily manage your child’s account online by knowing when they make deposits and withdrawals.
  • Some banks organize seminars for kids while some goes as far as giving out scholarships.
  • No minimum amount is required, you can save as low as possible.
  • Kids account has high rate of interest
  • They can easily manage their account online

Types of Account to Open for your Kids

Types of Account to Open for your Child

Education Savings Account

This type of account is set up purposely for your child’s education. The savings in the account is not used for something else but to pay your child’s fees and any other things that would be needed be it in primary, secondary or tertiary stage.

Custodial Account

The official age a child can be on his own and get whatever he so desire is 18 years, children below this age are not allowed to operate a normal savings account under the law of the federal government, so this type of account is opened on behalf of the child and managed by the custodian which is the parent till the child comes of age i.e till the child reaches the age of 18, then the account would be converted into a normal savings account which the child can now take control of. The good thing about this type of account is that the savings in the account cannot be withdrawn by the custodian for their own benefit.

Joint Current Account

A joint current account is an account that is opened by an adult and a child that is below 18 years usually referred to as minor. This account is operated by both the adult and the child. The adult would place a withdrawal limit on the account so that the child should not spend the money anyhow as they both own the money. The money will also be tracked by the adult so that the money can be spent responsibly.

Interest-earning Savings Account

This type of account is what most banks open for children and they all have different names like the smart kid save for gtbank, early savers account for access, kids account for fcmb, kids first for first bank, fidelity sweetA account, royal kiddies account for wema, zenith children’s account, U-care savings account for uba, unity kids account and polaris rainbow account. These accounts have no minimum deposit, since it is for children of age 0-17, they can make deposit of any amount into the account.

Conclusion

Opening an account for your child helps them not only to learn how to manage their financial situations but also to get other benefits provided by the bank such as invitation to events like children’s parade, participation in raffle draw and competitions,gifts, scholarships,end of the year parties organized by their banks and many other opportunities. Also children can also be granted credit facilities to cover for their school fees.

Why not open an account for your child today to make them enjoy all these benefits.

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