10 Best Savings Accounts for Children: Interest Rates and Benefits

Opening a savings account for children is a great way to teach them about financial responsibility, saving habits, and the value of money from a young age. Many banks in Nigeria offer savings accounts designed specifically for children.

These accounts often have lower minimum balance requirements, no monthly fees, and higher interest rates compared to regular savings accounts.

By opening a savings account for your child and actively involving them in the saving process, you can help set them on the path toward financial responsibility and independence.

10 Best Savings Accounts for Children 

1. Ecobank Junior Saver Account

Ecobank's Junior Saver Account is a fantastic way to introduce your child (aged 0-12) to the world of saving! They can start small with a minimum opening balance of ₦5,000, but the account can hold up to a maximum of ₦5,000,000, allowing their savings to flourish over time.

The best part? Their hard work is rewarded with a competitive annual interest rate ranging from 1.9% to 11.0%, depending on the chosen term length (flexible between 1 and 12 months). Furthermore, there are no account maintenance fees, so every deposit goes directly towards your child's bright financial future! To open an Ecobank Junior Saver Account, click here. 

2. GTB- Smart Kids Save (SKS)

GT Bank's Smart Kids Save account is a perfect platform to nurture a savings habit in your child (aged 0-18). It's easy to get started with a minimum deposit of just ₦1,000, and the account can hold up to a maximum of ₦5,000,000 as their savings grow.

Also, their savings in this account earns an annual interest rate ranging from 1.9% to 6.0%, depending on the chosen term length (flexible between 3 and 12 months).  To open a GTB -Smart Kids Save Account, click here.

3. Providus Kiddies Account

Looking for a high-yield savings option to maximize your returns? This account delivers! With a minimum opening balance of ₦100,000, it caters to those who can make a more substantial initial deposit. But the rewards are worth it!

This account has a maximum balance of ₦10,000,000. Additionally, it offers competitive annual interest rates ranging from 4.0% to 10.0%, depending on the chosen term length (flexible between 1 and 12 months). There are no account maintenance fees, ensuring every deposit maximizes your potential returns. This is a fantastic opportunity to safeguard your child's future. To open Providus Kiddies Account, click here. 

4. Globus Kiddies Account

Turn your child's piggy bank into a powerful savings tool with the Globus Kiddies Account! This account is designed specifically for young savers (aged 0-18) and offers a low minimum deposit of ₦1,000. However, their money can grow with interest rates ranging from 1.9% to 8.0%, depending on the chosen term length (flexible between 3 and 12 months). The Globus Kiddies Account makes savings rewarding. To open Globus Kiddies Account, click here. 

5. Sterling Bank - I Can Save (Minor)

With the Sterling Bank, I Can Save account, your children can start saving with a modest ₦1,000 deposit. With annual interest rates ranging from 1.9% to 5.0%, you can watch their savings grow up to ₦5,000,000 over a term of 3 to 12 months, all without incurring any fees. To open Sterling Bank- I Can Save Account, click here. 

6. Ecobank - MyFirst Account

Ecobank's MyFirst Account is a fantastic way to jumpstart your child's (aged 0-17) financial future! This special savings account allows you, as the parent, to deposit money on their behalf. The funds grow with interest rates that can reach a very attractive 12.0%. This not only teaches your child valuable saving habits but also allows them to accumulate a nice sum over time, ready to be accessed when they reach adulthood. To open Ecobank - MyFirst Account, click here. 

7. Zenith Children’s Account (ZECA)

This unique savings account comes in two tiers, catering to both young children and teenagers.  While there's a slightly higher minimum opening balance of ₦10,000 compared to some competitors, ZECA offers an interest rate of up to 6%, helping your child's savings grow over time. To open Zenith Children's Account (ZECA), click here.

8. Access Bank - Early Savers Account

The Early Savers Account by Access Bank is a savings account for children below 16, including unborn children.

The account can be opened in trust for a child by the parent/guardian who will be the primary account holder with the responsibility of running this account until their child attains adulthood and can solely operate their own accounts or possibly move to other age-appropriate product. To open Access Bank -Early Savers Account, click here. 

9. United Bank for Africa Teens Account

United Bank for Africa Teens Account is designed to prepare teenagers for adulthood while granting them a certain level of freedom to help them grow and build their individuality. The account has an annual interest of 1.9% which could rise to 8%. To open UBA Teens Account, click here. 

10. FCMB Kids

This account offers a low minimum opening balance of ₦2,000, making it accessible for parents to initiate their child's savings journey.  While the initial deposit may be modest, the account can grow to a maximum balance of ₦5,000,000.  

Additionally, the account encourages saving with an annual interest rate ranging from 1.4% to 7.0%, depending on the chosen term length (flexible between 3 and 12 months).  To open FCMB Kids Account, click here. 

*All financial institution highlighted in this list are approved by the Central Bank of Nigeria. You can verify here. 

Benefits of Opening a Savings Account for Your Child

Opening a savings account for your child offers numerous benefits that can help set them up for financial success both now and in the future.

Here are some of the key advantages:

• Goal Setting and Achievement

A savings account allows children to set specific savings goals, such as saving for a toy, gadget, or special outing. Working towards these goals teaches them the value of setting objectives, planning, and achieving milestones through disciplined saving.

• Financial Security

Having savings provides a sense of financial security for children and their families. Knowing that they have money saved up can give children peace of mind and confidence, especially in times of unexpected expenses or emergencies.

• Ownership and Responsibility

Owning a savings account gives children a sense of ownership and responsibility over their finances. They learn to take care of their money, make decisions about how to allocate it and understand the consequences of their financial choices.

• Interest Earnings

Many savings accounts offer interest on deposits, allowing children to earn a return on their savings over time. While interest rates may be relatively low, the concept of earning interest introduces children to the concept of passive income and the benefits of saving money in interest-bearing accounts.

• Financial Independence

Having their own savings account empowers children to make financial decisions and manage their money independently. It teaches them to be self-reliant and prepares them for greater financial independence as they grow older.

• Teaching Delayed Gratification

Having a savings account teaches children the value of delayed gratification. Instead of spending their money immediately, they learn to postpone consumption and prioritise long-term goals over short-term desires.

Overall, opening a savings account for your child offers numerous benefits that can help them develop essential money management skills, cultivate responsible saving habits, and build a solid foundation for financial well-being throughout their lives.

Teaching Children Financial Responsibility

Teaching children financial responsibility through savings accounts is a valuable lesson that can set them up for a lifetime of smart money management.

Financial responsibility also empowers kids to make smart money choices, build wealth, and achieve their long-term goals from a young age.

Here are some ways you can effectively teach kids about financial responsibility using savings accounts:

• Start Early: Introduce the concept of saving and financial responsibility to your kids at an early age. Starting early helps kids understand the importance of managing money from a young age.
  
  
• Set Savings Goals: Encourage kids to set savings goals for themselves. Whether saving for a toy, a gadget, or a future expense like college or a car, having clear savings goals motivates kids to save regularly and teaches them the value of delayed gratification.
  
  
• Track Progress: Make saving fun by tracking progress towards savings goals. Create a visual chart or use a savings tracker app to monitor how much they've saved and how close they are to their goals. Celebrate milestones to keep them motivated and engaged in the saving process.
  
  
• Teach Budgeting Skills: You can also use the savings account to teach kids about budgeting and responsible spending. Help them understand the difference between needs and wants and encourage them to allocate their money wisely.
  
  
• Lead by Example: Be a positive role model. Let your kids see you saving money, budgeting, and making informed financial decisions. Involve them in age-appropriate discussions about household finances and explain the importance of saving for the future.
  
  
  

Choosing the Right Savings Account for Your Child

Choosing the right savings account for your child is an important decision that can set the foundation for their financial future. Here are some key factors to consider when selecting your child's savings account:

• Account Features: Look for a bank that offers savings accounts specifically designed for children or minors. These accounts often have features tailored to young savers, such as no monthly fees, low minimum balance requirements, and educational resources to teach kids about money management.
  
  
• Safety and Security: Ensure that the bank you choose is reputable, financially stable, and insured by the Nigerian Deposit Insurance Corporation (NDIC).
  
  
• Educational Resources: Look for a bank that offers educational resources and tools to help children learn about saving, budgeting, and money management. Some banks provide interactive websites, mobile apps, or financial literacy programs specifically designed for young savers. These resources can help teach your child valuable financial skills and reinforce good money habits.
  
  
• Parental Controls: Consider whether the bank offers parental controls or supervision features for children's savings accounts. Some banks allow parents to monitor account activity, set spending limits, and receive alerts or notifications for certain transactions.
  
  
• Fees and Charges: Choose a bank that offers low or no fees for children's savings accounts to maximise the value of their savings. Be sure to read the account terms and conditions carefully to understand any potential costs involved.
  
  
• Customer Service: Choose a bank with responsive customer service representatives who can assist you and your child with any questions or concerns about the savings account. Friendly and knowledgeable staff can enhance the overall banking experience and provide support as your child learns to manage their finances.

By considering these factors and comparing options from different banks, you can choose the right savings account for your child. You can visit nairaCompare to get accurate information on the best savings available, developing saving habits for your kids and more!

Conclusion

Looking to open a savings account for your child? Compare the details of the 10 Best Children's Savings Accounts outlined below before making a decision!

Essentially, opening a children's savings account is an investment in your child's future. It fosters financial responsibility, goal-setting skills, and a healthy respect for money. By choosing the right account and incorporating age-appropriate teaching strategies, you can equip your child with the knowledge and tools needed to make sound financial decisions throughout their lives. Don't delay – click the button below and take the first step towards raising a financially savvy adult!