Are you a parent looking for the best way to financially secure your child’s future? Are you finding it difficult to choose the right bank to open a savings account for your child? If so then this article is for you.
As a parent, opening a savings account for your child is entirely possible, and doing so as early as possible is a wise decision. This way, you provide your children with a foundation of financial stability, teach them valuable money management skills, and instill the importance of saving for the future. Choosing the best bank to open a savings account for your child can be quite a challenge as there are so many options in Nigeria. Navigating the many requirements, fees, and interest rates of different banks can be daunting. But don’t worry, this article is here to guide you, reduce stress, and help you make more informed decisions.
At the end of this article, you will have a better understanding of which bank is best to open a savings account for your child in Nigeria. We will provide you with accurate, up-to-date information to help you evaluate your options and make the best decisions for your child’s financial future.
What to look for in a savings account for children
Below is a list of things parents should keep in mind when opening a savings account for their children:
- Low or no fees – Look for a children’s savings account with little or no fees to ensure your child’s savings aren’t eaten up by bank fees.
- High interest rates – The more interest your child receives, the more money you leave in their account to grow.
- Easy Access – Look for a savings account with easy access. While some banks offer competitive interest rates, they may come with conditions such as high minimum balances, limited withdrawals, or penalties. Choose a bank that allows your child to easily access his or her savings without incurring hidden fees.
- Minimum opening deposit – Look for savings accounts for children that require little to no minimum opening deposit. Parents may have difficulty depositing money into a savings account if the initial deposit amount is too high.
- User-friendly tools – Choose a bank that offers mobile and online banking tools to help your child track their savings and monitor their transactions. This will help form good financial habits for your children early on.
- Additional benefits – Find out if the bank offers any benefits for opening a savings account for your child, such as discounts on other banking products like loans or credit cards.
Best Savings Accounts for Children in Nigeria
If you are looking for the best bank to open a savings account for your children, we have provided you with our top 10 list. Here are the 10 best savings accounts for children in Nigeria.
- Guaranty Trust Bank – Smart Kids Save (SKS)This savings account is specially designed to help parents save for their children’s future with a minimum deposit of N1,000. SKS accounts have a competitive interest rate of 3.15% per year, higher than the average savings account interest rate in Vietnam. Nigeria. Additionally, the account comes with value-added features such as financial literacy resources, the SKS Ambassador Club, and birthday gifts for account holders. Overall, the SKS account is a great choice for parents who want to financially secure their children’s future.
- Access Bank – Early Savers Account: An early savings account is a savings account that helps parents instill a savings culture in their children from an early age. With a minimum deposit of N1,000, parents can enjoy a competitive interest rate of 2% per annum with this account. Other features of the Early Savings account include the provision of a free debit card for children aged 0-12 and dedicated account agents to assist parents with account management. The Access Bank Early Savings Account is a great choice for parents looking for a reliable savings account for their children.
3.. Zenith Bank Children’s Account (ZECA): ZECA is another popular savings account for children in Nigeria. With a minimum deposit of N1,000, parents can enjoy an attractive interest rate of 1.75% per annum. The account comes with features like free internet banking, SMS alerts, and personalized debit cards for children aged 0-17. Additionally, account holders can withdraw up to 50% of the account balance in case of emergency. Overall, ZECA is a great choice for parents looking for a flexible and convenient savings account.
- Ecobank Nigeria – Junior Saver Account: The Junior Saver account is a savings account designed for children from 0 to 18 years old. With a minimum deposit of 5,000 Naira, account holders can enjoy an attractive interest rate of 1.5% per annum. This account offers benefits like a personalized debit card, free text and email alerts, and access to the EcoSchool learning platform. Additionally, parents can set up standing orders to automatically transfer funds from their account to their child’s account. Overall, the Junior Saver Account is a great choice for parents looking for a savings account that offers educational resources and value-added features.
- Fidelity Bank – Sweeta Account: Fidelity Bank’s Sweeta account is specifically designed to help parents save for their children’s future. With a minimum deposit of just N5,000, parents can set up an automatic savings plan to help them reach their financial goals faster. The interest rate on this account is very competitive and currently stands at 3.5% per annum.
6 . Sterling Bank – I can save: Sterling Bank’s I Can Save account offers parents a simple and convenient way to save for their children’s future. With a minimum deposit of ₦1,000, parents can start saving for their child’s education, their future home, or any other financial goals they may have. The interest rate on this account is very competitive and currently stands at 2.5% per annum.
- Keystone Bank – Future account: The Keystone Bank Futures Account is designed to help parents save for their children’s future safely and conveniently. With a minimum deposit of just N5,000, parents can benefit from a competitive interest rate of 2.5% per annum. This account also comes with a free debit card, which can be used to withdraw money from any ATM in Nigeria.
- Ecobank Nigeria – Junior Saver Account: Ecobank’s Junior Saver Account is a perfect way to teach children the habit of saving from a young age. With a minimum deposit of just ₦1,000, you can open an account for your child. The account offers competitive interest rates of up to 3% per annum, payable quarterly. The interest rate is one of the best for children’s savings accounts in Nigeria. Ecobank also offers a mobile banking app, allowing account holders to monitor account balances, make transactions, and even set savings goals.
- Union Bank – UnionInfinity: Union Bank’s UnionInfinity account is another great savings account option for kids. This account is designed to help children develop a savings culture and learn important financial skills in a fun and practical way. With a minimum deposit of ₦1,000, you can open a UnionInfinity account for your child. The account earns up to 3.75% interest per year, paid annually. Union Bank offers a mobile banking application for customers to conveniently manage their accounts.
- Stanbic IBTC – CHESS Account: Stanbic IBTC’s Children Educational Savings Scheme (CHESS) Account is designed for parents who want to save for their child’s education. The account requires a minimum opening balance of ₦1,000, and it offers an interest rate of 1.2% per annum. The account provides a penalty-free withdrawal at any time, as long as it is for education-related purposes. There is also an e-learning platform that provides children with fun and educational material to learn about money matters and develop their financial literacy.
Importance of teaching children to save
Teaching your children to save money can be a stressful task but the rewards that come with it are worth the stress. Here are five reasons why you should teach your child how to save money.
- Develop financial knowledge: Teaching children to save money helps them understand the value of money and how to manage it. As they watch their savings accumulate over time, they learn the importance of patience, goal setting, and delayed gratification.
- Encourage self-discipline: Saving requires a certain level of self-discipline and self-control, which are essential skills for children to develop. By learning to delay gratification and regularly setting aside money to achieve their financial goals, children can foster positive habits and avoid impulsive spending later in life.
- Prepare for future expenses: Children will eventually have to pay expenses such as college tuition, a car, or a down payment on a house. Starting to save early will prepare them for these expenses and can ease their financial burden when the time comes.
- Creating wealth: Saving early as a child can help children develop wealth over time. Even small amounts saved regularly can grow thanks to the power of compound interest. Encouraging children to save long-term will help them enjoy a comfortable retirement and achieve their financial goals later in life.
- Independence and responsibility: When children realize the value of their money and how to manage it, they will be less likely to rely on financial help from others. This promotes independence and responsibility and gives children a sense of pride and achievement that comes with financial independence.
Saving tips for children
Saving money can be a daunting task for kids, especially with their constant craving for almost every edible snack on the shelves of a supermarket. However, with these tips below they can be able to develop a saving attitude.
- Start early: Encourage your children to start saving as early as possible. By starting early, your children can develop healthy financial habits and lay the foundation for long-term financial stability.
- Set goals: Help your child set financial goals, like saving for college, buying a car, or their first home. This can give them motivation and a sense of accomplishment as they work toward their goals.
- Teaching budgeting: Teach your children the importance of budgeting and how to manage money well. By learning how to allocate funds and prioritize spending, they can ensure they save the necessary amount each month.
- Provide financial incentives: To encourage your children to save, consider offering them financial incentives. For example, match a percentage of the money they’re saving or offer to pay a percentage of a larger purchase they’re saving for.
- Choose the right bank: When opening a savings account for your child, choose a bank with competitive interest rates and low fees. Look out for different options and weigh their pros and cons to find the one that best meets your child’s needs. Additionally, look for banks that offer financial education resources and tools to help your children learn about saving and budgeting.
FAQs on Best Banks in Nigeria to open savings accounts for kids and children in 2023
1. Which bank in Nigeria offers the highest interest rate on children’s savings accounts in 2023?
As of 2023, Fidelity Bank offers a top interest rate of 4.5% on children’s savings accounts, making this a great choice for parents who want to maximize their savings. my child.
2. Do any banks in Nigeria offer special incentives or rewards for children who save regularly?
Yes, Zenith Bank offers a junior account that comes with a free debit card and rewards for regular savings. In addition, UBA also offers a Youth account with a scholarship program for qualified students.
3. What are the requirements to open savings accounts for children in Nigerian banks?
Usually, parents will need to provide valid identification, such as an ID card or passport, as well as the child’s birth certificate. Some banks may request additional documents, such as a utility bill or proof of address.
4. Can parents set up automatic savings plans for their children’s accounts with Nigerian banks?
Yes, many Nigerian banks offer automatic savings plans for children’s accounts. This is a great way for parents to ensure their children save regularly and learn good financial habits.
5. Which bank in Nigeria has the best customer service for children’s savings accounts?
Access Bank is consistently rated as one of the best banks in Nigeria for customer service and also receives positive feedback from parents about their children’s savings accounts.
Choosing the best bank in Nigeria to open a savings account for your child is an important decision. Before choosing, consider each bank’s interest rates, incentives, and customer service. Ultimately, the goal is to put your child on a path to financial stability and success.