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Opening Bank Account For Kids...is It Beneficial??

Discussion in 'Schoolgoers & Teens' started by Bestmom, Apr 27, 2017.

  1. Bestmom

    Bestmom Silver IL'ite

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    Hello friends,
    I want to ask u guys..have anybody opened bank account for kids..if so which bank is beneficial?? My kids save money in their piggy bank which they receive from grandparents or from us..sometimes when am in need of money I tend to overspend tat amt but forget to replace them...so I thought it wud be wise to put it in bank account as a savings..
    Pls suggest
     
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  2. breeze01

    breeze01 Platinum IL'ite

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    hey.... I been thinking to open one for my 5 yr old son but keep on postponing... I also takes cash from his dabba and forgets to put it back... I am herein usa I guess lady at bank was telling me one time they have accounts for little kids..that time my son was an year old didn't pay that much attention... but if ur in usa you can look online their different kind of accounts... I am in the process as of now... doing some online research so I can ask them my questions when I go to bank...
     
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  3. Bestmom

    Bestmom Silver IL'ite

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    Am regretting now..for not opening when my dd was a yr old....by now I cud have saved a handsome amt....now looking for good options..
     
  4. DDream

    DDream Platinum IL'ite

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    I think it is a good idea. I opened separate savings account for each of my kids after the birth of second one. We add a minimum amount to each account every month. We don't touch that money for any reasons. Over the years it has grown. We started it to help their university education in future. But now I feel that it was a good decision, as I can see its growth. If not we would have wasted it for some thing else...I am sure we wI'll help them even if we don't do this way.. still. I also learned that many people do that..

    Simple logic..Many drops make the water to flow. It is better to have something than nothing..
     
    Last edited: Apr 28, 2017
  5. Shanvy

    Shanvy IL Hall of Fame

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    I assume you are in india. Most banks have kid accounts. In others a parent or grandparent can open if the child is a minor.
    Some banks have kids or young stars accounts that can be opened by the child if he is 10 or more if he is able to sign consistently. I personally feel 10 is too young and the old 18 or maybe even 16+ would be fine. A debit card and a cheque book not a game changer for me.

    Go with the bank you are already with. You can open a savings account or a flexi savings account or even a td or rd with post office. A timedeposit with post office now can give you upto 7.7% for 5 yrs while rd locked to 5 yrs gives 7.6%.

    It is never late. Start one now. Discipline is the key. Do not overspend. Think that piggy does not exist for you unless it is a emergency. And pay a penAlty when you use it say 10rs for every 100.and start paying a pocket money into the accoint.

    Once there is a amount say 5k to 10 get a fd. You can also do a sip.

    The kids started with an account 10yrs ago kind of late but it is ok. We did fds That double in 100m and sll.

    All the best
     
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  6. ammani

    ammani Gold IL'ite

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    It's good option.. we have opened an account and I'm the legal guardian.. we have FD's also.. we had two functions for him and all the amount he got as gifts we did a FD.. so it's helpful.. sometimes in emergency like health etc can be useful.. or is untouchable for daily use types!!
     
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  7. Sani12

    Sani12 Bronze IL'ite

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    Yes absolutely. And you must teach children banking from an early age as well. Take him to the bank, show him around. They will come to know how banks work , they will understand how economy\finance works.
     
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