Three Things You May Want to Consider When Opening a Bank Account for Your Child

When we opened a savings account for the girls 5 years ago, we picked the bank that we usually go to. Luckily we were able to choose the one that came with many benefits and additional perks. Nowadays, many banking institutions offer so much more as they compete with one another to get more customers.

While my hubby and I also look at which bank offer higher interest rates, the proximity and the queue, there are other things that you may also want to think about when availing banking services for your child.

1. Minimum Investment 

How much money you would like to put in is one of the first things you need to ask yourself. You may go for the minimum or you may take the minimum investment to earn interest.  Bank of Commerce for example, only takes Php200 to open a bank account, but you have to have Php10,000 to earn interest monthly.

Banks may ask for zero to Php2,000 as initial deposit to open one. PSBank offers an account for kids and teens for zero investment. All you need to do is comply with their requirements. 

Most of these financial establishments ask for only Php100 to Php200, their guardian or parent’s valid IDs and proof of residency. These days they may be very strict and could also ask for more requirements to open an account for your child so be prepared.

2. Maintaining Balance

While most banks do ask for a low sum when opening a savings investment, they do require you to maintain a specifc amount for you to keep your account open. Do take note that they can charge you money every month (until your bank account closes) if you fall below the requirement.  Most of the maintaining balances are the same as the minimum amount of money to open  a savings account but there are some like Security Bank. Metrobank, and BPI that has higher asking maintining balances.  

3. Additional Benefits

Banking insitutions offer more than the usual saving accounts for chidren. Some come with a welcome kit thas has a card that offer discounts and perks from their partner establishments. While there are some, like Metrobank Fun Savers, PSBank  Kiddie and Teen Savings Account and RCBC Go Savers who also offer other great to have freebies, such as educational trust, comprehensive and accident insurance for their customers.