Best Bank Account for Your Child and Kids

What is the best bank account for your child? This is one of the important questions you need to ask yourself when raising your child. Children grow into what their parents mould them to be. Teaching your child how to handle money will make them more successful in future because managing money is a major part of achieving end goals. This is usually called financial education.

Opening a bank account for your child will help them find out how money works, why it is important to save and how saving can help fulfil their savings goals. Depending on the financial institution there may be different requirements for opening an account such as a minimum opening deposit and proof of address etc. As these are kids accounts most will have zero minimum balance requirements. The best bank accounts for kids have certain hallmarks. In this article, you will learn about that and get a list of banks that offer some of the best child’s accounts in the country.

Features of the Best Children’s Accounts

The best child bank accounts have the several key features. To begin with, they give allowance for easy access to the account through app access, online banking or mobile banking. The use of a debit card to spend and access the funds if necessary. For motivation, the child needs to see or be show the activities on the account from time to time. These include their account balances, account notifications, interests earned, rewards and bonuses.

Best child banks also provide the cheapest and least cumbersome money transfers from the parent’s (or guardian’s) account to the child’s. Banks usually provide better internal parent and child account linkage than external ones. So as a parent, ideally the best bank for your child’s account is your bank. Being able to monitor your child’s account lets you keep tabs on their progress. You need to know if your child is learning how to manage his or her finances as you intended.

Lastly, some additional features like interest rates and bonuses or rewards should also be taken into account if you feel like getting into the details. Children’s accounts that are savings accounts usually earn the account holders interests. If the account you choose for your child earns interest, it can be a good opportunity to teach your child about investing and compound interest. Additionally, an account rewards will help motivate your child to save. In the long term, the child will learn that it is beneficial to save money.

Best Banks for Children’s Accounts

Standard bank’s

Standard bank’s child account the called (sum)1 banking account. A (sum)1 Account comes with the following features:

• A R 0 monthly account fees.
• A R 0 charge for internal. account to account transfers.
• A R 0 charge for 10 debit orders every month.
• A R 0 charge for card swipes.
• A R 0 charge for cash. withdrawals at Standard bank ATMs or branches countrywide. However, there is a maximum limit of R 1 000 per withdrawal.
• A R 0 charge for cash deposits at Standard bank ATMs or branches countrywide. However, there is a maximum limit of R 1 500 per deposit.
• A free balance inquiry from a cell phone.
• Free internet use on the FNB App.
• Up to 600 Mbs of data back when on purchases made using FNB Connect using the FNBy Account.

Requirements

In order to apply for the (sum)1 account from Standard bank, you should have the following:

• Your (the guardian’s or parent’s) Republic of South Africa ID card or document.
• Your ( the parent’s or guardian’s) proof of residence that is at most three months old.
• The original birth certificate of the child.

Absa Bank’s

Absa bank offers a number of accounts for kids. They include:

Absa Bank MegaU Account

A MegaU Account comes with:

• R 0 monthly service fee.
• R 0 charge for internal account to account transfers.
• R 0 charge for internal debit orders.
• R 0 charge for card swipes
• R 0 charge for ABSA ATM or point of sale cash withdrawals.
• R 0 charge for SMS or email notifications.
• Free 100 Mbs of data each month.

Requirements

In order to apply for a child account with ABSA Bank, you should have the following:

• If you (the guardian or parent) are a South African citizen and your child is below 16 years old, your Republic of South Africa ID card or document. If you are not a citizen but your child is still below 16 years old, your passport will be required.
• If you are a South African citizen aged between 16 and 20 years old, your Republic of South Africa ID card or document. If you are not a citizen but you still fall within this age bracket, your passport will be required.
• Parent’s or guardian’s proof of residence that is at most three months old for a child of less than 16 years of age.
• Child’s proof of residence that is at most three months old for a child of 16 years to 20 years.
• The original birth certificate or passport of the child below 16 years old.
• R 10 minimum account balance.

FNB Bank’s

FNB Bank’s children’s is called the FNBy Account. It comes with the following features:

• A R 0 monthly fee.
• A R 0 charge for internal account to account transfers.
• A R 0 charge for internal debit orders.
• A R 0 charge for card swipes
• A R 0 charge for cash deposits at FNB bank ATMs or branches countrywide. Although, there is a maximum limit of R 500 each month for this.
• A R 0 charge for SMS or email notifications. These can be sent to both parents and children.
• A personalized FNBy card.
• A R 0 for subscriptions to digital channels.
• Free internet use on the FNB App.
• Up to 600 Mbs of data back when on purchases made using FNB Connect using the FNBy Account.

Requirements

In order to apply for a child account with FNB Bank, you should have the following:

• A copy of your (the guardian or parent) your valid Republic of South Africa ID card or document.
• Signed declaration of proof of residence form for your child.
• A copy of the abridged and unabridged birth certificate of your child or a valid identification document. 

Reasons to Open a Bank Accounts for Your Children

At some point during their growth and development, children need to learn how to manage their finances. Money is a scarce resource. If children grow up without knowing this, they become extravagant. Consequently, they will have difficulty managing their finances by themselves. However, if they are taught the value of money early on, it gets easier to instill in them sustainable spending habits later on.

During early childhood, children are very dependent on their parents financially. As they grow, they get more responsible for their finances. As a result, parents need to teach them how to manage their finances and how regular saving can help them reach their financial goals. There is no perfect age to start teaching your child about money. Although, according to Kevin O’Leary (a successful Canadian businessman and internationally recognized financial educator), parents should already be talking to their children about money by the age of 6. He believes that children should be made aware of what money is and that money is earned. In the interview with CNBC, he says that his children were aware of the concept of debt by the age of 6. He taught them early on to have a positive relationship with money so that when he introduced debt and interest to them, they could get a grasp of what it was.

A children’s bank can be used to teach help children develop a positive relationship with money. Open an account for them, help them understand that they own money which is in their account, help them understand how to make money by solving other people’s problems, and teach them how saving money is beneficial in the long term. All these can be done using the tools that the best child bank accounts offer.

READ ALSO:

• How to Open a Bank Account in South Africa
• Top 6 Best Student Bank Accounts in South Africa 2021
• How to Use Capitec Mobile Banking