4 Factors in Choosing a Children's Savings Account

Opening a children’s saving account for your kids will help them develop smart money habits at an early age. Below are four important factors to consider when picking the right savings account for your children.

1.  Attractive Interest Rates

Although interest rates for junior savings accounts are usually higher than for regular accounts, you still need to shop around for the best rate. Even a small difference in interest can have a big impact on the amount of money that your children will be able to save through the years.

2.  Low or Zero Maintenance Fees

The amount of money deposited in a junior savings account is usually small. Thus, it is important that the children’s saving account you choose charges very low or no fees. You do not want the money saved by your child to be reduced by exorbitant bank charges.

3.  Fun Perks

It is also a good idea to choose a junior account that offers fun perks for kids. Fun activities, birthday freebies and club memberships are offered by banks to encourage children to learn more about money management.

4. Accessibility

Aside from high interest rates and low fees, you also need to consider the accessibility of the bank. Make sure that your child can easily go to the bank or access the account via the Internet. Having easy access to a savings account will encourage a kid to save more.