Some parents may want to inculcate the virtues of saving in their children from a young age. One tangible way for children to learn about money is with a bank savings account, which is also especially useful when children start primary school at the age of 7.
Owning a savings account can also teach your child a valuable lesson in delayed gratification. They can see their savings grow by putting it in a savings account.
As parents, you can encourage a savings habit by bumping up their pocket money. This will offer opportunities for them to save, instead of having just enough to cover their daily expenses.
You can also consider the best way to give an allowance to your child. Younger children may need to learn to manage a daily allowance. When they are slightly older, your children can perhaps manage increasingly larger weekly or monthly allowances.
Read Also: 5 Money Mistakes Malaysians Make That Will Cause Them to Spend More in The Future
What Is A Child’s Savings Account?
Most banks in Malaysia offer savings accounts specially designed for children. These bank accounts will typically have an age restriction – requiring account holders to be below the age of 12 to 18 years old.
Typically, you (ie. parents or legal guardian) will have to accompany your children when opening their child’s savings account. The conditions for opening a child’s savings account are also usually less strict with lower minimum initial deposit amounts.
Another notable benefit of opening a child’s savings account is that they offer an attractive interest, in particular for the first RM50,000 and attached to good savings habit such as not making excessive withdrawals.
#1 Alliance Bank’s Buddy Account
Interest Rate:
First RM50,000: 2.75% p.a.
Above RM50,000: 0.00% p.a.
Eligibility: Children aged 18 and below can apply. Parent or guardian must be present.
Initial Deposit: RM50
Fees: Dormant service fee of RM10 a year for accounts that have not been operated by account holder.
Other Notable Benefits:
Earn a 10% bonus interest p.a. on total interest earned for the year if you fulfil the following requirements:
- 0 withdrawal for 12 consecutive months.
- Deposit a minimum of RM100 every month for 12 months.
#2 Maybank’s Yippie Savings Account
Interest Rate:
First RM50,000: 2.60% p.a.
Above RM50,000: 0.40% p.a.
Do note that interest rates are subject to fulfilment of condition of 1 withdrawal per month for 6 consecutive months.
Eligibility: Children must be below 18 years of age and parent must be below 60 years old.
Initial Deposit: RM1
Other Notable Benefits:
- Get 0.10% bonus interest for 12 months.
- Earn Academic Cash Reward that is awarded based on exam results. By maintaining at least RM1,000 balance, your children are eligible to receive the following cash reward:
| Exams | Results | Cash Reward |
| SPM | 8As / A+ | RM200 |
| STPM/A-Levels | 5As / 4As and MUET Grade 6 | RM300 |
| University Degree | First Class Honours | RM500 (account must be opened before account holder reaches age 18) |
- Receive personal accident coverage, medical and funeral benefits for parent and children.
| Account Balance | Sum Covered Death/TPD | Medical Expenses | Funeral Expenses |
| RM1,000 – RM5,000 | Maximum RM30,000 or 10x account balance (whichever is lower) |
RM1,000 | RM1,000 |
| Above RM5,000 – RM10,000 | Maximum RM70,000 or 10x account balance (whichever is lower) |
||
| Above RM10,000 | Maximum RM100,000 or 10x account balance (whichever is lower) |
#3 OCBC’s Young Savers Account
Interest Rate:
First RM50,000: 2.55% p.a.
RM50,000 and above: 0.10% p.a.
Eligibility: Children aged 17 and below can apply with parent or guardian.
Initial Deposit: RM500
Fees:
- Interbank GIRO fund transfer fees:
- Over the counter (OTC) – first 2 transactions of the month come with a charge of RM0.50 each & subsequent transactions within the month cost RM2 each
- Internet banking – RM0.10 each
- Dormant account charge of RM10 per year for accounts that have not been operated by account holder.
Other Notable Benefits: Get 5% bonus interest on interest earned for the year if you make 0 withdrawals during the year starting from 31 December.
#4 CIMB’s Junior Savings Account
Interest Rate:
First RM50,000: 2.50% p.a.
Next RM50,001 – RM100,000: 0.95% p.a.
Above RM100,000: 1.45% p.a.
Eligibility: Children aged below 18 years old. Once the account holder turned 18 years of age, the account will be converted into a Savings Account.
Initial Deposit: RM100
Fees: Dormant account fee of RM10 a year.
Other Notable Benefits: Earn 100% bonus interest on total interest earned when you make monthly deposits of at least RM100 via Periodic Payment Instruction (PPI).
#5 HSBC’s Junior TopRate Statement Savings Account
Interest Rate:
First RM50,000: 2.50% p.a.
Above RM50,000: 0.45% p.a.
Do note that there’s a limit of 1 withdrawal per month.
Eligibility: Parents with children aged 17 and below can open the account.
Initial Deposit: RM1
#6 Public Bank’s WISE Savings Account
Interest Rate:
First RM50,000: 2.42% p.a.
Above RM50,000: 0.35% p.a.
Eligibility: Children under age 18 can apply independently. For minors below the age of 12, parents or legal guardians will have to apply the account on behalf of them.
Initial Deposit: RM1
Fees:
- Issuance of letter of confirmation fee of RM10
- Inactive account service fee of RM10 a year
Other Notable Benefits:
- Able to access the PB Journey app where children can create savings goals and even earn goal interest at the Overnight Policy Rate (OPR) minus 0.50% p.a. when they achieve their goals within the set tenure. They can create goal amounts from RM100 to RM5,000 for tenures of 10 to 360 days.
- Participate in the Star Achiever Programme and receive cash rewards for achieving the following results in the SPM examination:
- 8As: RM200, capped at 100 awards
- 10As: RM300, capped at 150 awards
Do note that account holders need to maintain a minimum of RM500 daily balance throughout the programme.
- Set automatic transfers of up to RM1,000 every month.
- Account holders aged 12 and above will be given a debit card.
#7 UOB’s Fun Savers Account
Interest Rate:
First RM50,000: 2.40% p.a.
Above RM50,000: 0.35% p.a.
Eligibility: Children aged between 12 and 18 can apply for a single account. Children aged below 12 years old must apply jointly with parent or legal guardian.
Initial Deposit: RM1
Fees: Dormant account service fee of RM10 a year.
#8 Hong Leong Bank’s 3-In-1 Junior Account
Interest Rate:
First RM50,000: 2.15% interest p.a
Above RM50,000: 0.00% interest p.a.
Eligibility: The 3-in-1 Junior Account is an adult-for-child account, whereby the parent or legal guardian is the primary account holder and the child is the beneficiary.
Initial Deposit: RM1
Fees: There is no charge on the first over the counter (OTC) withdrawal of the month. Each subsequent withdrawals within the same month will come with a charge of RM2.
Other notable benefits:
Comes with a Pocket Money app which allows your children to request for tasks as a way to earn extra money. The account also comes with a debit card for your children to spend with. Meanwhile, as parents, you can set spending limits, monitor your children’s spending and are able to freeze or block the card instantly.
Read Also: 6 Savings Accounts In Malaysia To Credit Your Salary
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