Seven things to consider in opening a baby’s account

   Right from when a baby is born, the parents can start to save for the child’s education by opening a bank account for him or her.

As the child grows up, the parents should start to imbibe savings culture in him by making him to be involved in the management of his bank account.

Children who imbibe the savings culture early in life usually tend to be more prudent with their spending when they grow up.

However, when the child reaches an age that is specified by his bank, he can graduate that account into another type of savings, which he can solely manage.


Again, to encourage the child to save more and spend less, parents can reward the child by crediting his account.

If you want to enjoy great services from a baby’s account, make sure it has the following features:

Low opening balance: Some banks can allow as low as N500 opening balance to start a baby’s account. This money is not expected to be spent but to encourage the parent and the child to save more over the years.
Educative features: Choose a bank that encourages the children to study well in school by providing avenues for them to compete and win prizes. As the child grows up, the bank should also provide online educative programmes, which can teach them about credit and debit cards and how to practise safe banking.
Competitive interest rates:
Choose a bank that will offer you favourable interest rates and increase the value of the savings as the child grows up. If the bank is not paying you any interest, that account may not be appropriate for your baby. Again, it is necessary to know that the more money you have, the more interest you earn from it.

Easy deposit: You may need to save money in the account regularly. Choose a bank that allows you to pay into the account through the payment methods that are convenient for you.
Location: As the child grows up, you will need to be taking him to the bank to make him familiar with the banking hall. Your child will also get excited to see people doing their business in the bank. That is why you need to choose a bank that is easily accessible to you.
No charges: Baby’s accounts are meant to build saving culture in them as they grow up. Their money should also be increasing over the years. Ask your bank and be sure that you are opening a baby’s account that does not have hidden charges.
Online platforms: The child may not be able to operate the account on his own when he is still very young but at a certain age, the bank may approve Automated Teller Machine card for him based on his parent’s approval. At this stage, the child will be ready to manage his account.