Get your child’s account instead of the moneybox. Banks usually offer it free of charge or at low rates . Moreover, it often yields interest. You will appreciate the money so well.
You can open a child’s account from birth. At the age of 8, he will also receive a credit card at most banks . Some banks limit its use to ATM withdrawals only. Others act as adult cards, but have a lower payout limit. However, children always have money to hand if necessary.
And you have access to internet banking to control what your child is spending money on.
Once your child is 15 years old, banks will transfer the child’s account to a student account. He differs from the child’s lower interest rate . But you still pay low fees for it, or its management is completely free. Students receive a regular credit card for this account . Students can also use the account to receive temporary work.
In order to open a student account, you usually need a student confirmation. Some banks, however, grant student benefits to all clients under 26 years .
Savings account and term deposit
If you want to value your kids’ money, open a savings account. This will give you more interest than on your current account. Moreover, the money is not tied, so it is always available.
Another option is term deposits , which in some cases have higher interest rates. However, their disadvantage is that you cannot withdraw money for some time. Otherwise, your bank will charge you fees and you will lose interest.
Therefore, only place time deposits with children if you know they will not need the money urgently.
The trend of the past years was also to create building savings for children, even if you did not plan any construction. This type of savings paid off because of high interest rates and state support .
Today, however, the conditions are not nearly as convenient and sometimes equal to term deposits. So if you really do not save the offspring on a new house or apartment, do not mindlessly close the building savings.
For all types of financial products, always be sure to compare the offers of all institutions in order to choose the best product.