A recent survey from BDO suggesting that 3 in 10 Canadians don’t have enough money to meet their needs highlights just how important it is for parents to teach their children about personal finance. It is a gift that can continue to benefit them for their entire lives.
There’s no time like the present to teach your children about money. One way to do that is by opening a youth savings account for them.
When choosing an account, there’s more to consider than just a high interest rate. You should look for an unlimited number of free transactions so fees and other costs don’t eat into your children’s savings – the impact of fees can feel bigger if the savings amount is smaller. With that in mind, here are what we consider to be the best bank accounts for children:
Tangerine Children’s Savings Account
The Tangerine Children’s Savings Account has an interest rate of 1.25%—the best rate among youth savings accounts. There’s no minimum balance required to get that rate. The account has no fees, it comes with an unlimited number of free transfers, and it’s available to any child aged 16 or younger. There’s just one small catch: A parent must have an existing Tangerine savings or chequing account in order to open a children’s account.
CIBC Advantage for Youth
The CIBC Advantage for Youth account has an interest rate of 0.15%. There’s no monthly fee and there’s no limit to the amount of free transactions that can be made. Account holders can keep their account as long as they’re aged 18 and under.
TD Youth Savings Account
The TD Youth Savings Account has a tiered interest rate. That means if the balance is less than $5,000, the rate is just 0.05%. If the balance is greater than $5,000, the interest rate is 0.1%. The account has an unlimited number of free transactions and there’s no monthly fee. This account is only available for those aged 18 and under.
Scotiabank Getting There Savings Program for Youth
Similar to the TD Youth account, the Scotiabank account offers a tiered interest rate that starts at 0.05% for balances less than $5,000 and 0.1% for balances in excess of $5,000. Also available to those aged 18 and younger, the account offers no monthly fee and unlimited transactions.
RBC Royal Bank Leo’s Young Savers Account
The RBC Royal Bank Leo’s Young Savings Account has an interest rate of 0.50%. There’s no monthly fee, but there is a $1 fee per transaction, and a $1 fee for internal transfers.