About 30.0% of the Philippine population in 2021 is 14 years old and younger.[1] This means almost one-third of the country’s population is dependent on adults and is yet to experience important milestones in their lives.
That makes parents an essential aspect in guiding children as they go through a lot of life events—finishing school, getting a job, and building a family.
One of the most important roles of parents is teaching their kids about money. Instilling in children the concepts of saving, earning, and investing is important in developing life skills they can use through adulthood.
Opening a bank account for kids is a good idea to train them on handling and managing their money, like when they receive Christmas cash gifts from their ninongs and ninangs. It’s also a great way to boost their savings, which they can use for tuition or other expenses as they grow older.
What You Need to Know When Opening a Savings Account for Kids
Opening a bank account for minors in the Philippines is almost the same as opening one for adults, with a few exceptions such as the following:
Parents Need to Open the Account with Their Kids
You and your child should open the account together. If the account will be under your child’s name, you’ll be required to sign a waiver or any document signifying your awareness of the account opening.
Some banks in the Philippines will ask you to open a joint account depending on the child’s age. You have control over the account, but you don’t have the sole authority to manage the money that’s coming in and out of the account.
You May Choose Between a Joint Account or a Custodial Account
Banks require individuals to be 18 years old and above to open a regular bank account. If you decide to open one for your kid who is below 18 years old, then choose whether you’d open a joint account or a custodial account.
A joint account simply allows you and your child to have control over the account. A custodial account, on the other hand, sets up the account under your child’s name, which you can manage until the child reaches the legal age or at the age the bank permits.
Banking Rules Also Apply to Kiddie Savings Accounts
Although the best savings account for kids may have a different setup from regular savings accounts for adults, remember that banking terms and conditions still apply to the kiddie account.
For example, you still need to make sure the account contains the required maintaining balance to avoid closure. You’ll also have to ensure the account is active with at least one activity recorded in a year.
What to Consider When Choosing a Bank Account for Kids
Shopping around for the best bank account for kids will let you compare different offers, benefits, and terms. If you’re not sure which account best fits your child, then read on to see what you should be looking for in a savings account for children.
1. Initial Deposit and Maintaining Balance
Banks set up an opening balance and a maintaining balance for kids’ bank accounts. You may want to choose an account that requires low opening and maintaining balances to ensure you can afford to sustain it until your kid reaches adulthood.
See also: 16 Savings Accounts with No Maintaining Balance
2. Fees, Features, and Interest Rates
As a parent, you should be aware of how much fees will be charged against the savings account when it falls below the maintaining balance or when it’s tagged as dormant. Some banks automatically deduct at least PHP 300 per month of inactivity or falling below maintaining daily balance.
Parents should also watch out for the interest rates to understand the account’s growth each month. The best bank for children's savings accounts in the Philippines usually sets 0.5% interest per annum while other basic savings accounts for kids don’t earn interest.
Related articles:
- ATM Fees in the Philippines All Cardholders Need to Know
- What Banks are Open on Weekends? Here's a Guide for Your Weekend Banking Needs
3. Benefits
A savings account for children may also come with some perks if these are enrolled under special programs. Some accounts entitle your child to dental and health services for free once the account reaches a balance of at least PHP 15,000.
4. Online Accessibility
Most savings accounts for kids come with an ATM card and a passbook, which serves as a record of account activities. However, modern times call for bank accounts to be easily monitored online. Choose a kiddie account that can be set up, monitored, and viewed through a mobile app or by logging in to the bank’s website.
5. Branch and ATM Locations
The bank with the nearest ATM and branch near you can be of great priority, especially during this pandemic. Choose a bank that is easily accessible for you and your child. Some account-related issues like forgotten password and account reset can’t be resolved online or via a phone call, which requires you to visit a branch to resolve.
What are the Best Bank Accounts for Kids?
Is it time to save for your child’s future? In no particular order, here are the best savings accounts for kids in the Philippines.
China Bank Savings Easi-Save for Kids
The China Bank Savings Easi-Save for Kids[2] is an interest-earning savings account for children 7 to 12 years old. This account does not have an ATM card. It comes with a passbook instead, which makes it the ideal if you just want to keep the funds in the bank.
Key features:
- Age requirement: 7 to 12 years old
- Interest rate: 0.125%
- Initial deposit: PHP 500
- Minimum maintaining balance: PHP 500
- Maintaining balance to earn interest: PHP 500
Why it’s great for children:
- Comes with a passbook
- May be opened through an In-Trust For (ITF) arrangement
Equicom Kiddie Builders Savings Account
The Equicom Kiddie Builders Savings Account[3] is under the bank’s Kiddie Care Program that provides free dental care treatments once the account reaches an average daily balance of PHP15,000.
Key features:
- Age requirement: 0 to 13
- Interest rate: 1%
- Initial deposit: PHP 500
- Minimum maintaining balance: PHP 500
- Maintaining balance to earn interest: PHP 1,000
Why it’s great for children:
- Account-holders of this savings account for kids automatically become a member of Kiddie Care Club
- Free medical and dental benefits from Maxicare when account balance reaches PHP 15,000. Benefits include annual check-ups, oral prophylaxis, tooth extraction, temporary fillings, and more.
- Auto-Fund Transfer Arrangement option for a minimum monthly contribution of PHP 100
BPI Jumpstart Savings
BPI’s Jumpstart Savings account[4] helps kids learn the value of saving money at an early age. Built with several unique features, the Jumpstart Savings Account can help parents instill financial discipline in children.
Key features:
- Age requirement: 10 to 17
- Interest rate: 0.25%
- Initial deposit: PHP 100
- Minimum maintaining balance: PHP 500 for BPI Family account, PHP 1,000 for regular BPI account
- Maintaining balance to earn interest: PHP 1,000 for BPI Family account, PHP 2,000 for regular BPI account
Why it’s great for children:
- Guaranteed Savings feature that protects a portion of the funds from unplanned withdrawals
- Allowance Transfer Facility that ensures a child’s allowance gets credited to their Jumpstart Account on a scheduled basis
- Cellphone reloading via BPI Express Teller ATM, BPI Phone Banking, BPI Mobile Banking Menu, or BPI Online Banking
Metrobank Fun Savers Club
The Metrobank Fun Savers Club provides an opportunity for kids to feel involved with their savings journey, as they automatically become a member of the Fun Savers Club. The account opening usually comes with kiddie packages or recently, a life insurance plan from AXA. However, unlike other savings accounts for kids, the Metrobank Fun Savers Club has no ATM option.
Key features:
- Age requirement: 0 to 17
- Interest rate: 0.125%
- Initial deposit: PHP 100
- Minimum maintaining balance: PHP 10,000 (once the account holder turns 18)
Security Bank Junior One Account
The Security Bank Junior One[5] is an opportunity for kids to earn through an interest rate higher than a regular savings account.
Key features:
- Age requirement: 18 and below
- Interest rate: 0.50% (0.12% starting October 21, 2021)
- Initial deposit: PHP 100
- Minimum maintaining balance: PHP 5,000
- Maintaining balance to earn interest: PHP 5,000
Why it’s great for children:
- Comes with a passbook and a debit card (optional)
- Easy account opening: Account holders can get their Security Bank Everyday Card and SB Online Access on the same day the account was opened
PSBank Kiddie and Teen Savers Account
PSBank allows parents to open a kiddie account and shift to a teen savers account[6] when the child reaches 12 years old.
Key features:
- Age requirement: 0 to 12 for kiddie savers; 12 to 18 years old for teen savers
- Interest rate: 0.25%
- Initial deposit: Any amount
- Minimum maintaining balance: None
- Maintaining balance to earn interest: PHP 2,000
Why it’s great for children:
- No minimum maintaining balance, so you’re safe from extra charges that other banks would otherwise deduct from the account
- Free Personal Accident Insurance equivalent to five times the monthly average daily balance
- Comes with Passbook and ATM for non-ITF (In-Trust-For) accounts
RCBC GoSavers Account
RCBC Wise Savings Account[7] includes three ways to access transaction records via a passbook, a statement of account, and a transaction record list.
Key features:
- Age requirement: 0 to 21
- Interest rate: 0.15%
- Initial deposit: PHP 100
- Minimum maintaining balance: None
- Maintaining balance to earn interest: PHP 5,000
Why it’s great for children:
- Comes with a passbook and an ATM card
- Exclusive discounts from partner merchants
- Free personal accident insurance (valid for a year) for both the account holder and parent/guardian upon opening an initial deposit of at least PHP 1,000
Maybank Yippie Savings Account
The Maybank Yippie Savings Account[8] is perfect for parents looking for savings and protection in one.
Key features:
- Age requirement: 0 to 12 years old
- Interest rate: 0.25%
- Initial deposit: PHP 500
- Minimum maintaining balance: PHP 500
- Minimum maintaining balance to earn interest: PHP 5,000
Why it’s great for children:
- Comes with a passbook and ATM card (accessible also in Malaysia, Singapore, Cambodia, and Brunei free of charge)
- Free 24/7 personal accident insurance equal to five times the previous month’s average daily balance or up to PHP 500,000
- Free medical reimbursement benefit equal to 10% of personal accident insurance coverage
How to Open a Bank Account for Kids
Here are the steps to follow when opening a bank account for kids.
Step 1: Prepare the Documents
Banks differ in documentary requirements for account opening. However, start preparing the basic supporting documents.
For children - Birth certificate, school ID or school certificate signed by the principal, and passport. If these documents are inaccessible, you can secure a Barangay Certificate with your child’s photo signed by your local Barangay Captain. The certificate must indicate your child’s name, age, and address.
For parents - Two valid government-issued IDs and birth certificate, or proof of guardianship for the child
For both the parent and child, a 1x1 picture may be required.
Step 2: Visit the Nearest Branch
Inform the staff that you’re opening a bank account for kids. Submit the IDs and other documents to the staff for verification.
Once the documents are verified, you’ll be asked to fill out the account opening forms. Depending on the age of your child, some banks already require children to fill out the same forms.
Step 3: Pay the Required Deposit Amount
Aside from submitting the required documents, you may also need to provide a minimum of PHP 100 initial deposit amount, depending on the type of account.
Step 4: Wait for Your Deposit Receipt and Account Opening Documents
Once your account is processed, the bank representative will hand over the deposit slip receipt, which you need to present when claiming the ATM and passbook. From this time, the account is already active.
There is a savings account that may require the ATM card number to be enrolled online. Other savings accounts for kids can be enrolled automatically if you have an online account with the same bank.
Final Thoughts
Opening a savings account for kids (and teens) is a good way to start teaching them the basics of personal finance. Having a savings account will give them the opportunity to learn basic concepts such as saving, tracking finances, and compound interest. Learning basic money habits is an important value for kids and adults alike.
Choose from the suggested savings accounts for kids and give them responsibility when it comes to handling their own money. It’s a great way to teach them habits and values that develop their character.
Sources:
- [1] World Population Dashboard Philippines (UNFPA, 2021)
- [2] China Bank Savings Easi-Save for Kids
- [3] Equicom Savings Bank offers ‘Kiddie Builders’ Savings Account
- [4] BPI Jumpstart
- [5] Security Bank Junior One Account
- [6] PSBank Kiddie and Teen Savers Account
- [7] Teach your kids the habit of saving with GoSavers
- [8] Maybank Yippie Savings Account
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