Where to save my baby's angbao money? - Opening a Bank Account in Singapore

21:30


It's never too early to help your kid kickstart his/her savings journey since we all know how powerful compound interest can be!

In Singapore, the first savings account which most parents open for our children is the Child Development Account (CDA), which enables us to enjoy the baby bonus and dollar to dollar match up by the Singapore government. (For more information regarding CDA, please click here!)
However, please note that CDA is not an ordinary bank savings account where you can simply withdraw money anytime for any child-related expenses. CDA is a special saving account for Singapore children up to the age of 12 years old where the money can only be used for specific child-related expenses under a restricted list of organisations.

So what if the parents wish to have just an ordinary savings account for their kids where money can be put aside each month and retrieved easily for our child's education(tuition/enrichment) or investment to grow their savings?
Therefore, Mummypoh has consolidated a list of the existing saving accounts offered by the banks specially for kids! Surprisingly, different banks do have their own way of attracting us parents to open a junior saving account with them, unlike those mundane attractions for adult saving accounts.


Banks
Basic Interest Rate (p.a) 0.80% 0.05% 0.1875% 0.05% 0.05% 0.10% 0.05%
Bonus Interest (with conditions) - - First $3K : 0.1875% p.a

Next $47k : 0.3125% p.a

Remaining balance above $50k: 0.3750% p.a		 Extra 0.35% p.a : Deposit min. $50 monthly with no withdrawals

Extra 0.4% p.a : For OCBC CDA Holders		- - -
Min. Deposit Amount/Extra Fees $1000 min. deposit

$1 monthly account fee for paper statements		 None $10 minimum deposit None None until child turns 21 years old None. But must complete a GIRO form of at least $50 monthly deposit into A/C. $500 min. deposit for SG

$1000 min. deposit for non SG

$2 fall below fee
Eligibility Child below 12 Child below 18 Child below 16 Child below 16 Child below 18 Child below 21 Child below 16
Advantages ✔High interest rate

✔No additional requirement to gain 0.8% interest p.a.

✔Online banking service available		 - ✔Free $20 POPULAR Bookstore voucher with min. deposit $1000

✔Free HFMD & PA insurance for min. deposit $2000 until child reaches 17 years old		 ✔Easy to find ATM

✔Priority queue for kids on Sunday

✔Free game app for kids on money management

✔Online banking service available		 ✔Easy to find ATM

✔Coin deposit fee waived until 16 years old

✔$1 gift deposit

✔ Free 6 months Popular membership card		 ✔Online banking service available. ✔Free life insurance for min. deposit $3000 until child reaches 17 years old.

✔Online banking service available.
Disadvantages ✘Hard to find ATM. ✘Hard to find ATM

✘Low interest rate

✘ Online banking service available only for child above 15 years old		 ✘ Hard to find ATM

✘Add. requirements to hit maximum interest rate

✘Online banking service available only for child above 15 years old 		✘Add. requirements to hit maximum interest rate ✘Low interest rate. ✘Hard to find ATM. ✘Hard to find ATM.
Bank account website Details Details Details Details Details Details Details
Personally I chose OCBC Mighty Savers as my baby's CDA is already under OCBC. So that will give me a minimum of 0.45% interest p.a. However, below is my take without consideration of CDA!

For initial deposit below $1000
OCBC Might savers or Maybank Youngstarz will be two considerable choices due to the high interest they offer with deposit lesser than $1000.

For initial deposit between $1000 to $2000
I will definitely choose CIMB Junior Savings because of it's highest interest rate(0.8%) for deposit amount above $1000.

For initial deposit above $2000
I will definitely choose Maybank Youngstarz because of it's free Personal Accident Insurance coverage, including HFMD! Currently, a PA insurance for a kid can range from $200 to $300 p.a based on the coverage amount.  Thus, that contributes to our "savings" as well!

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