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. With that in mind, here are what we consider to be the best savings accounts in Canada for children:
Tangerine Children’s Savings Account
The Tangerine Children’s Savings Account has an interest rate of 1%—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.
Meridian Youth Account
The interest rate on the Meridian Youth Account is just 0.3%. But the account comes with a great feature: Four rebated Interac ATM withdrawals from non-Meridian ATMs per month. There are also an unlimited number of free transactions (for example, bill payments, debit transactions, transfers, and withdrawals). And there’s no monthly fee or a minimum monthly balance required. The account is available for those who are 17 years old and under.
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.
ATB Financial Generation Account
Although the interest rate on the ATB Financial Generation Account is only 0.1%, the account has no monthly fee and there’s an unlimited number of free transactions. It also comes with two free Interac e-Transfers per month. The best thing about this account is your child can keep it as long as he or she is a teenager. But it must be converted to a different type of account before he or she turns 20.
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.
- Why You Should Set up a Savings Account for Your Child
- The Best High-interest Savings Accounts in Canada
- 5 Reasons to Save Money