September 14, 2011

Comparison of Junior Savings Account

Updated 5/9/2012: Updated latest interest rates for some of the products.

As a parent myself, it is never to early to teach your children about the concept of savings. Even though the children might not understand the meaning for the savings, but if we as the parent, make savings as a part of daily fun activities, the kids will definitely enjoy it and appreciate it more. Experts have came out with many methods and systems that can encourage the children to learn the savings concept, but personally I'm practicing the Money Jar method. I will elaborate more about this Money Jar method in my next article.

So now, we've got some savings for our children and what do we do with it? Some people will invest the money in unit trusts or stock market. There's nothing wrong with this, but the savings quantum must be quite big to make a big difference. For small savings, naturally we are looking for a savings account for children.

There are plenty of children savings accounts in the market. The common features of these children/junior savings accounts are:
  • Higher interest rate as compared to normal savings accounts
  • Limited number of withdrawal per month
  • Limited withdrawal method (normally OTC withdrawal only)
  • Low account opening sum, as low as RM 1
  • Rewards / Incentives, i.e. cash rewards for excellent exam results, free personal accident coverage etc.

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