There is no upper age restriction when it comes to investing. Investing is open to anyone, regardless of age or status. In fact, your chances of generating respectable returns increase the earlier you begin investing. Therefore, it only makes sense to begin saving for your children as soon as feasible. You will discover a few strategies if you want to start investing for your children but don’t know where to begin. Here, you can discover several excellent child investment accounts in Nigeria and how to save for your children’s future investments.
How do savings account investments operate?
Many individuals believe that savings accounts are simply standard accounts where you deposit cash that you can spend as you like. But this isn’t the purpose of a savings account. Ideally, you ought to maintain a current account where you deposit funds for ongoing expenses. On the other hand, a savings account should only be used by you to save money.
You can now earn interest on any funds you deposit into a savings account by keeping them there without touching them. This is a straightforward method for securing your child’s financial future through investment and an excellent approach to invest utilizing a savings account. In essence, you make an investment for for your child:
1. Opening a savings account with a high interest rate in any reliable Nigerian bank.
2. Next, wait until your youngster is ready to manage the account before letting the money and interest accrue. In this method, the interest the account collects allows your child to earn money without actively working.
Additionally, you can continue contributing funds to your child’s savings account until you are prepared to release it. The amount of interest that can accrue depends on how much money is in the account.
Most Effective Child Investment Account in Nigeria
As was already mentioned, you can invest using a savings account. Listed below are a few of the Nigerian child investment accounts:
1. First Bank
Children can choose between the KidsFirst and MeFirst packages offered by First Bank. These packages essentially allow kids between the ages of 0 and 12 to have their own accounts.
You can open a KidsFirst account in your child’s name and manage it on your own with no initial deposit. If you deposit at least N10,000 when opening a KidsFirst account, your child will receive a gift. When your child reaches the age of 13, First Bank automatically switches this account to the MeFirst account.
A package for teens between the ages of 13 and 17 is called the MeFirst account. With the help of this account, kids can develop a habit of saving money and being financially responsible when they get older.
2. Access Bank
The Early Saver account, offered by Access Bank, is only available to children under the age of 16. You can start an Early Saver account as a parent and manage it until your child reaches adulthood and is prepared to do so.
Basically, you can deposit up to N10,000 worth of dividend warrants into this account, which has a beginning balance of N1,000. However, it has a cap on the number of withdrawals you may make and prevents you from getting an arm card.
3. Zenith Bank
The Children Account (ZECA) of Zenith Bank is a unique savings account reserved just for children between the ages of 0 and 17. This account was created by Zenith Bank in two categories for both small children and teenagers.
Children ages 0 to 12 may open a children’s account with Zenith Bank. The Zenith Bank account for teens, on the other hand, is available to teenagers between the ages of 13 and 17. There is no initial amount in this account, and the interest rate is 1.15 percent.
4. Polaris Bank
The Polaris Rainbow Savings account from Polaris Bank is a savings option for young people. In essence, the bank created this account for children between the ages of 0 and 12. Additionally, until your child reaches the age of 18, you, as the parent, will serve as the account’s trustee.
This account has a minimum N1,000 initial amount and offers competitive interest on savings. Your child’s account will automatically switch to a Polaris Young Achievers Account once they are 13 years old.
5. Wema Bank
Wema Bank’s kids package is known as Royal Kiddies. This account was created by the bank for kids between the ages of zero and twelve. You will also be responsible for managing this account until your child reaches adulthood.
The account’s distinctive characteristics include a minimum N2,000 initial balance and an interest rate of 2.15 percent. To be eligible for the interest rate, withdrawals from this account must be made no more frequently than once per month.
6. Unity Bank
For children and teenagers under the age of 18, the Unity Kids account serves as a savings account. When your child turns 18, this account automatically switches to a major one with a competitive interest rate.
7. United Bank for Africa (UBA)
A special account called UBA Kiddies was created just for kids between the ages of 0 and 12. The UBA Teens Accounts, on the other hand, are designed for children between the ages of 13 and 17.
As long as they maintain a minimum balance of N5,000, account owners will receive a 13-month incentive equal to 10% of their monthly savings plan for more than 12 months in a row. The annual interest rate on this account is 1.15 percent, and it is payable every month.
8. Guaranty Trust Bank (GTB)
Smart Kids Save from Guaranty Trust Bank (GTB) is a special savings account created just for kids under the age of 18. The smart kids portion (0–12 years) and the smart teen section are basically the two primary sections of this account (13 -17 years).
This account’s components include a minimum N1,000 initial amount and an interest rate of 1.15 percent.
9. First City Monument Bank (FCMB)
Kids Account is the name of the FCMB’s child account. This savings account was created by the bank for kids between the ages of 0 and 17. This account has a minimum N5,000 initial amount and offers excellent interest rates.
10. Fidelity Bank
Children between the ages of 0 and 17 may open a SWEETA children’s account with Fidelity Bank. This account operates with a N1,000 initial amount and offers the beneficiaries a competitive interest rate.
11. Stanbic IBTC
Stanbic IBTC, like every other bank, offers a special program for kids called the Children Education Daving Scheme (CHESS). In essence, this savings account is designed for kids between the ages of 0 and 17. The account offers a special interest rate of 1% over that of a typical savings account.
Final Reflections
Opening a savings account for your child is a smart investment move that enables them to profit from the interest that the account will accrue. Any of the aforementioned savings accounts are excellent options for kids’ investments in Nigeria. Just be sure to keep your withdrawals from the account to a minimum so that it can develop quickly.