Picking Your Child’s Savings Account

Saving for your child is important, and eventually, I’m also going to teach Baby J the importance of saving for the future. Picking the right bank for your child’s savings account among the huge variety of banks here in Singapore may be tricky for most. There are also many considerations for many parents, like:

• What is the Interest Rate?
• Are there convenient branches for the bank?
• Are there perks and promotions?
• Is it a local bank?

And more…

When we were picking a savings bank for Baby J, our criteria was very simple; we only wanted the best interest rate. The interest rates of banks in Singapore are rather miserable, so that meant quite a lot to us. We don’t really need to withdraw money from the account as well, so the proximity to any branch is not applicable to us, though that may be important to some people. We also wanted to maintain an account that is fuss-free; free of hassle, no additional terms and conditions. After I summarise all the available choices for kid’s savings account in Singapore, I will reveal our final pick at the end.

For the purpose of this post, I will break it up into 2 major parts, local and non-local banks, and sort them starting from the highest interest rates.

Local Banks
The three local banks in Singapore, namely OCBC, DBS/POSB and UOB, have kids’ savings account. Local banks are very accessible as they have many branches throughout Singapore. The convenience of being able to visit a branch may be a plus point for many parents. Now let’s compare the interest rates and the other features of each type of account.

1. OCBC Mighty Savers
   • Base Interest: 0.05% p.a.
   • Bonus Interest (with conditions)
     • Deposit $50 or more monthly without withdrawals: Additional 0.35% p.a.
     • Open your child’s CDA account with OCBC: Additional 0.4% p.a.
   • Overall Interest Rate: Up to 0.8% p.a.
   • Minimum Initial Deposit: $0
   • Minimum Balance: $0
   • Age Range: 16 & below
   • How to Apply: At a branch or by mail
2. ePOSBkids Account
   • Interest Rate: 0.05% p.a.
   • Minimum Initial Deposit: $0
   • Minimum Balance: $0
   • Age Range: 18 & below
   • How to Apply: Online (if you are an existing DBS/POSB account holder) or at a branch
3. UOB Junior Savers
   • Interest Rate: 0.05% p.a.
   • Minimum Initial Deposit: $500
   • Minimum Balance: $500 ($2 fee if average daily balance falls below $500 that month)
   • Age Range: 16 & below
   • How to Apply: At a branch

Non-Local Banks
In Singapore’s stable economic climate, non-local banks generally fare very well here. Some of them are also able to offer much better interest rates. However, there are normally fewer branches, and are usually harder to locate in the neighbourhood areas. Some parents who prefer to focus on the interest rates instead, may not mind the accessibility.

1. CIMB Junior Saver
   • Interest Rate: 0.8% p.a.*
   • Minimum Initial Deposit: $1000
   • Minimum Balance: $0*
   • Age Range: 12 & below
   • How to Apply: Online (if you are an existing CIMB account holder) or at a branch

   * Interest is computed on a daily basis, and will be at 0.8% p.a. if the balance is at least $1000 on any given day.



2. Maybank Youngstarz
   • Interest Rate: 0.1875% p.a. for first $3000, 0.3125% p.a. for next $47000
   • Minimum Initial Deposit: $10
   • Minimum Balance: $0
   • Age Range: 16 & below
   • How to Apply: At a branch
3. Standard Chartered e$aver Kids
   • Interest Rate: 0.1% p.a.
   • Minimum Initial Deposit: $0
   • Minimum Balance: $0
   • Age Range: Below 18
   • How to Apply: At a branch
4. Citibank Junior Savings
   • Interest Rate: 0.01% p.a. for first $5000, 0.05% p.a. for next $25000
   • Minimum Initial Deposit: $0
   • Minimum Balance: $0
   • Age Range: Below 18
   • How to Apply: At a branch

Among all 7 banks discussed here, CIMB and OCBC have the most attractive interest rates. However, because CIMB does not require us to fulfil any conditions in order to get the 0.8% interest rate, we picked them for Baby J’s savings account. The drawback is that they only have 2 branches, both in CBD area. However, we do not need to withdraw from his account any time soon, so it is good enough for us! 🙂

In addition to the summary I have done, there are also some free gifts and offers that vary from time to time (you may visit the links from each of these banks to check out their latest promotions). I hope this guide and summary has been useful for you to make your choice. Do share in the comments, which you have picked and why you picked that bank for your child! 🙂