Developing a saving habit is a difficult thing to do and it is even more difficult to start saving when you have children. It’s a habit that one must nurture while they are young. In this line, financial institutions have developed Junior savings accounts. These accounts could save your child the trouble you went through learning how to save by making them save from childhood.
Savings from these accounts come in handy for children upkeep in school as pocket money and later form a basis for their adulthood savings for their future. Here are eight of such products in the country that could you develop the saving culture for son or daughter.
1. Junior Eagle Account – Barclays Bank
This is a children savings account operated by parents for children. The account earns an interest on balances above KES 5,000 and comes with a free bankers cheque for school fees. It offers free withdrawals, deposits and standing orders. Opening requires a parents Identification documents, utility bill payment and the child’s Birth Certificate.
2. Jumbo Junior Savings Accounts – Co-operative Bank
This is a children’s bank account launched in 1995 as part of the Co-op Bank’s way of creating an avenue for parents to save up for their children’s future needs like Higher Education, while also encouraging the young ones to develop a saving culture as they grow up. This accounts portfolio has over 35,000 accounts opened countrywide.The product seeks to avail discount opportunities for its account holders at select Bookshops, uniform distributors and children’s hospitals countrywide.
To open a Jumbo Junior Account for your child KES 2,000 to open the account, Birth certificate of the child (original plus copy), National ID card or valid passport of the parent / guardian – original and copy and 2 colored passport size photos of the parent / guardian
3. Mdosi Junior – Family Bank
Mdosi Junior is an ideal account for children below 12 years of age and is operated by a parent or guardian. It is an account that is in line with the aspirations that many parents have for their children. “We are now offering your son or daughter an opportunity to learn the discipline of saving by providing a free Home Bank” the bank says.
The Account features Interest earning on balances from KES 5,000, free standing order, free school fees Banker’s Cheque and loans of up to 90% of the amount in the Mdosi Junior Account.
It requires parents identification documents and opening balance of KES 200 or KES 1,000 to start using Henry or Hannah Hippo Bank respectively.
4. Vision Account – National Bank of Kenya
This account is operated by parents/ guardians on behalf of the child and offers interest on deposits above KES 5,000 of up to 5.5% per annum. The account has no Maintenance Fees but has a counter withdrawal fee KES 100 per withdrawal and ATM withdrawal KES 30 per withdrawal. It has an opening balance of KES 500 and a Minimum operating balance of KES 500.
5. 123 Cool Kids Account – Bank of Africa
This is a children account operated by parents on behalf of children. It offers Tiered interest for savings above KES 5,000 and interest rates on daily account balances at 5.5% subject to market conditions. It features over the counter withdrawals once every 3 months, free statement every 6 months and a free piggy bank (bank keeps the keys).
The account has an opening balance of KES 2,000 and a minimum operating balance of KES 5,000. A Ledger fee of KES 200 per month is charged if balance is below KES 2,000.
6. Junior Savers Account – Consolidated Bank
This children savings account offers interest for amounts above KES 3,00o and a bonus interest of 25% earned if there are no withdrawals for a year. It has an opening balance of KES 1000 and has limited withdrawals in a year.
7. Young Savers Account – I&M Bank
This account offers interest payable quarterly on monthly minimum balance If minimum balance is maintained. It also offers 50% additional interest payable at the end of the calendar year on average yearly balances and in case of no withdrawals in a year, additional bonus interest of 1% per annum is payable.
It has an opening balance of KES 1000 with up to 6 withdrawals allowed in a year.
8. Prime Junior Savings Account – Prime Bank
This account operated by parents for children offers 12.5% bonus on normal interest if no withdraws are made within the year.It features a Tiered interest rates module paid on a minimum monthly balance and credited to the account quarterly. It has an opening balance of KES 1000 and a minimum operating balance of KES 1000.
The account automatically graduates to the AMBER Savings Account on 18th birthday.
Cultivate a saving habit with your child.