Advantages of Children’s Savings Account
We all want the best for our children. This can explain why once they are born, as parents we want to set aside some funds for their future needs. In some cases, a minor might receive an inheritance from their grandparent to trigger you to ask yourself ”what is the best account for a child to save in?” In Canada, banks have provided us with channels that can allow parents to invest for their children. Since such investments are always long term, it is normal for parents to try and find a children’s account that offers the most attractive benefits.
The Best way to start a Children’s Account with competitive interest rates
Money management is a skill that evades most people. The best way to introduce your child to this skill is by opening up a savings account on their behalf. This way, your child will get used to the habit of saving and help themselves build future savings.
What are some of the best savings accounts for children?
Being saving accounts for children, most Canadian banks and credit unions try to encourage savings by offering no-fee savings accounts for children. It goes a long way in getting them started. Most of the accounts are quite similar across the board but still hold their own important differences. In order to find the best saving account for your child, you need to pay attention to the smaller details.
To open a children’s savings account a parent will need to have their child’s Social Insurance Number with any of the documents listed below:
- Birth Certificate
- Canadian Driver’s License (if applicable)
- Proof of Citizenship
For children under 12 years, these accounts are opened as joint accounts with their parents or guardian who is of majority age. This account is aimed at supporting a child hence is known to come with some lucrative offers. A child can continue using this account until when they are about to join a college that is when they can upgrade to a students account.