Savings account for kids

Business, Normal

The National, Friday November 8th, 2013

 CHILDREN below 15 can now have their own savings account, thanks to Bank South Pacific.

It is simply called “kid’s savings account” newly introduced by the bank.. 

BSP said children between 11-15 years could open their own account in their own name. 

However, for those below 11, parents or guardians would act as custodians of the child’s account.

Parents would need to be fully identified by the bank through documents such as passport, birth certificate or baptismal certificate and must fill up customer information form. 

Children applicants would have to present a school certificate, a letter from the school, the child’s school identification card and must fill a customer information form.

The child’s account needs only a minimum opening amount of K2 and will neither pay a monthly fee nor maintenance fee.

The account holder is not required to pay any fee when depositing at a branch or via mobile or internet banking.

BSP said parents could also arrange for a standing order on their account.

This way, funds are automatically sent to the child’s savings account.

However, this account has restrictions, so parent cannot access the funds unnecessarily.

This is one means to maintain the savings, BSP said. 

Parents may only draw from the account during December and January only.

Tiered interest would be paid to the BSP “kids savings account”. 

“This means that the more the child saves, the more interest would be paid to her account.

As a parent, you can also help teach your child the value of money, and why it is important to budget and save.

“The “kids savings account” could also be used to save for special events such as birthdays, Christmas holidays and others. 

BSP said it understood that financial security was very important especially for children.