Bank accounts for children – Promote savings

Bank accounts for children – Promote savings

Image result for children bank accountBank accounts for children are a type of bank account aimed at children , so that from very young they learn both how to save money and manage their money under the supervision of their father or mother or guardian. Next, we collect updated information on accounts for children and a list of the best savings accounts of the moment.

How do the accounts for children work?

Usually, the operation of bank accounts for children is usually quite limited , since they have been specially designed to encourage savings. In addition, the child needs the authorization of his legal representative (father, mother or guardian) until 14-16 years to carry out most of the usual operations. Only, you are allowed to make cash income without the supervision of an adult , but you will not be allowed to make cash withdrawals until you reach the age of 14-16 years or even the age of majority.

In some cases, and depending on the bank where it has been contracted, this bank account can incorporate the possibility of hiring a prepaid card in which the parents or guardian deposit a certain amount of money so that the child can make their first purchases in a controlled manner. .

What are the hiring requirements?

As a general rule, banks do not usually establish requirements that are difficult to comply with when contracting a bank account for children. To date, among the conditions most frequently requested by credit institutions are the realization of an initial income or a periodic income that reaches a minimum amount or, failing that, maintain a certain average balance in the account .

Whatever these conditions may be, they must be reflected in the bank contract. In the event that they suffer any modification, the credit institution would be obliged to inform at least two months in advance of said changes, either by ordinary mail, by telephone or through the remote banking service that we will find available in its corresponding web page.

Who is the actual owner of the account?

As for the ownership of banking products aimed at children, the child is the sole owner of the bank account . However, the adult who has parental authority of the minor, whether his or her father, mother or legal guardian, will become their legal representative and, in most cases, will have authority over the money deposited in the child. Bank account.

However, even if the child is the owner of the account, who will make the decisions about the operations will be the legal guardian.

What advantages can we find?

Accounts for children are usually characterized by offering their holders some advantages in exchange for maintaining an average balance in account or making cash income on a regular basis .

All these benefits not only serve as a strategy to attract new customers, but also a way to build loyalty and create a link between the bank and the owner. Among the most common advantages we find:

  • Profitability for unlimited time

  • Gifts for children ( tablet , game consoles, music players, etc.)

  • Discounts on cultural and leisure activities

  • Promotions at the entrances of theme parks, cinema, theater, etc.

Current trends in the financial market for children

It is increasingly common to find accounts for children who have a series of mobile or tablet applications , which allow children to manage their own finances .

In addition, these interactive tools have facilitated the creation of a new concept of online savings for children known as collective goals or collective savings . This system allows adults to establish a series of goals for children (doing homework, helping with household chores …) and as they go about fulfilling them, the adult makes an income. When the child has completed all the tasks, he / she will have accumulated enough money to carry out a goal (trip, entrance to a theme park, toy …).

Thanks to the efforts made by some banking entities to incorporate new technologies in the accounts for children, educating the youngest members of the household in financial matters has become a much more enjoyable task. Most banks have applications that facilitate the control of finances. Some of them have even launched financial games with the intention of teaching and entertaining the little ones.

What happens when the child is of legal age?

Usually, banks usually transform the child account into a young account almost automatically , when the holder reaches an age between 16 and 18 years, depending on the policy of each bank.

In this way, the owner has expanded the operation of their bank account, as well as modified most of the advantages to which he had access. All this, with the intention of adapting to the new customer profile and to its economic needs. However, the conditions of the account can also vary , so it should be monitored that the bank does not start charging any commission, although generally the accounts for young people are free.