Introducing children to the concept of saving money would more often than not, be received with disinterest by them. If you’re looking for a way to make your kids more responsible with money, then a savings account seems like a good option to start with. These accounts offer an engaging and practical way to teach kids how to manage money wisely.
Most banks in the UAE offer an exclusive savings account for children, which can be opened by the parents in the minor’s name. Children’s accounts also come with some attractive perks. Here’s a look at the unique features that some of these accounts offer.
Earn higher returns on your account balance
Want to save for your child’s future? You can do so faster with higher returns on children’s savings accounts. Many banks offer a higher interest/profit rate on children’s accounts as compared to regular savings accounts. Here are some examples of such accounts:
NBAD First Step Savings Account – This account lets you earn 0.10% higher than the regular interest rate on NBAD savings accounts. Available for children below 14 years of age, the account does not have a minimum balance requirement. The NBAD First Step Savings Account also comes with a free NBAD MasterCard Platinum debit card and complimentary lounge access at a number of airports in the Middle East.
FGB ChildFirst Savings Account – This account gets you an interest rate of up to 1% p.a. (a standard 0.5% if you meet the minimum monthly balance requirement of AED 5,000 and an extra 0.5% if you deposit AED 2,000 in the account every month). Account holders also have the chance to participate in FGB’s FirstSavings Certificates draws.
[Related: A healthy savings culture starts at home]
Welcome gifts & special discounts on banking services
So you’ve decided to open a savings account for your child. And what could be better than a surprise welcome gift to get your child excited about the prospect of saving. Many banks offer a welcome gift pack, exclusive debit or prepaid cards or discounted banking services with children’s savings accounts. Here are few examples:
Emirates Islamic Child Savings Account – This account does not have a minimum balance requirement, and comes with a welcome gift for children under 8 years of age. Parents can also apply for a free debit card or prepaid card, and avail an optional Life Takaful cover of up to AED 120,000 with the child as beneficiary.
UNB Al Ahbab Account – This savings account comes with a complimentary welcome gift for children as well as a free Visa Electron debit card. Parents can transfer funds from their account to the Al Ahbab account for free, and UNB also offers special rates on education loans for account holders.
ADIB Banoon Children’s Savings Account – You get a Darhoom prepaid card and welcome gifts for your child when you open this account. ADIB also conducts interactive learning activities all over the UAE with Darhoom, ADIB’s specially designed cartoon character. This account earns a higher expected profit rates as compared to regular savings accounts.
An interactive website to teach children about saving
Some banks in the UAE are taking the children’s savings account value proposition one step further by introducing specially designed websites for children. The aim is to make the idea of saving fun, through interactive games and online activities. Below is an example of this:
DIB Shaatir Savings Account – You can open this account in your child’s name and there’s no minimum balance requirement. DIB offers a dedicated website for Shaatir account holders which features games and informative videos to teach kids about saving and how banking works. The account also comes with a complimentary Shaatir savings box and a free ATM card for your child (for balance inquiry only).
It’s never too early to teach your child about saving. You can browse through the children’s accounts listed on Souqalmal.com, compare their features and apply for a savings account for your child.