Explaining credit to teenagers
Accounts meant for kids can vary in terms of their features, and so it’s important to understand what they can offer you.
Earning Interest: Kids accounts generally offer variable interest rates, and so while offers vary, it’s worth looking at higher variable rates to help your little ones’ savings grow.
Bonus interest: Many accounts offer bonus interest each month if money isn’t withdrawn during the period. This gives savings a little extra boost.
Simple access to funds: This feature is an important one if your child needs access to their savings from time to time, and many provide either a debit card, phone banking or online banking to access the funds.
Low fees: Fees on kids’ savings accounts and youth transaction accounts tend to vary. For savings accounts, those that do not charge any account keeping fees are a great choice. However, for youth transaction accounts, take a look at card replacement fees, over-the-counter withdrawal fees, or monthly account keeping fees when comparing.
Age requirements: For those who are opening accounts for a first job, it’s worth checking the age ranges for accounts. While some accounts can be for those only above 18 years of age, transaction accounts can be available from 12 years.
Take the first step to setting up a kids banking account, and help them get an early start to banking, that’ll last them a lifetime.