More bang for a kid’s buck

BANK ACCOUNT OPTIONS: COMPARE BENEFITS AMONG THE DIFFERENT WAYS TO GO

‘It’s never too early to teach your children to pay themselves first,’ says Ryan Prozesky.

SA’s major banks all offer kids banking accounts, catering for varying ages, up to 25. Most banks will open accounts for children no matter how young, and the accounts incur no monthly fees.

However, parents should watch out for certain accounts which levy fees on the parents’ account for banking transactions which go beyond the basics, such as making more deposits or withdrawals than allowed.

Kids accounts include FNB’s FNBy, Absa’s MegaU, Standard Bank’s (sum)1 and Nedbank’s 4ME.

The graphic shows a summary of their offerings:

For many parents, opening a bank account for a child at the parent’s own bank is the easiest option, as it makes banking admin easier.

Banking professionals say parents are doing their children a favour by getting them to put some or all of their money in an account, so they can learn the value of saving money, early.

Nedbank’s Vanesha Palani suggests as they grow older, kids can learn about the benefits of getting interest on their savings or getting investment accounts.

FNB’s Ryan Prozesky said enabling children to see their money on banking apps is a fun, interactive way to educate children about managing their money, while also being safe and convenient for parents.