Do your children have bank accounts? Are you getting the best possible deal for them? My kids have been getting an allowance since the beginning of the year. We’ve tweaked their spending percentage a bit, but they are still saving half of what they get, such that their savings piggy banks have accumulated enough to warrant a bank transfer.
We have e-accounts for them where we have been stashing birthday money, etc. I don’t intend to move that, but I’m looking for somewhere that they can physically take the money into a branch and make the deposit. If they just see numbers on a computer screen, I’m concerned that it will be too abstract at the ages of 8 and 6. To that end, this post is being written while I do my research of available options.
Comparison of physical branch options
The chart below takes a brief overview of the interest rate and fees of various accounts from the larger banks. There are obviously more possibilities than the ones listed here. Links are provided because rates change all the time, as can the terms & conditions. If you decide to open one of these accounts, you should double-check everything – even if you’re taking action on the very day this post goes live.
|Interest rate (annual)||Fees||Other notes|
|Royal Bank of Canada – RBC Leo’s Young Savers Account||0.01%||No monthly fee, 15 free debits per month, charges for e-transfers|
|TD Canada Trust Youth account||0.25%||No monthly fee, unlimited debits, charges for e-transfers|
|BMO Kids’ Banking||0.25%||No monthly fee, 30 transactions, 2 free e-transfers||Up to age 12|
|Scotiabank Getting There Savings||0.05% (under $500), 0.10% ($500+)||No monthly fee, unlimited debits||Up to age 18, offers Scene rewards|
|CIBC Advantage for youth||0.30%||No monthly fee, unlimited transactions, fees apply for e-transfers|
|National Bank – First Step||?? doesn’t say||Free debits at counter only, no monthly fee||Ages 6 and under|
|National Bank – CoolCash||?? doesn’t say||No monthly fee||Ages 7-12|
These options were all so ridiculously low-interest that I stopped here. Our priority at this stage is interest rate and monthly fee. We don’t care how many debits each account gives because the money is only going in. Nothing is being withdrawn.
The kids’ online accounts are currently paying 2%. From a numbers perspective, it obviously makes a lot more sense to just add their allowance money to these existing accounts. I can access the accounts indirectly through the ATM. Each child would have to deposit their money in an envelope at the ATM to my husband & my joint account. I could then log in at home and move the money into their accounts. Will this make sense to them? Perhaps I’m not giving them enough credit. They seem to understand just fine when they are using virtual money in various educational apps!
Do you plan to do anything differently with your kids’ bank accounts?