Birthdays and special events are a great opportunity to teach children how to save money. Even though interest rates are negligible, opening a savings account can be fun for kids while promoting financial responsibility.
Most banks, building societies and the post office have special savings programmes aimed at the young saver.
Ulster Bank features Henri's Super Savers Club for primary school children. When opening an account with a minimum of £5 (€6.35) kids choose a free Henri or Holly Hipposhaped savings box. They also receive a colourful cover to hold their credit book, membership card, transaction register and welcome letter that explains how to use everything.
Periodic incentives include Henri's Howler, a free comic available from all branches each year and a wall poster calendar issued each November/December. The club element of the account encourages children to correspond with Henri or Holly at the bank or through the comic, which features puzzles, stories and competitions.
The Super Savers Club account is a demand account with no notice of withdrawal restrictions, the credit interest rate is variable and rises with the balance in the account. Current rates range from 0.10 per cent to 2 per cent per annum depending on the account balance.
A Baby Bounty Scheme offers new mothers a £3 Henri's Super Savers Club account opening voucher before leaving hospital. It may be redeemed at any branch of Ulster Bank.
The Bank of Ireland (BoI) says children under seven years of age may only open an account in the name of a parent. Primary school students over seven may open a Rainbow account.
This is BoI's young savers account featuring Croc of Gold, the friendly crocodile. Children receive a personalised Rainbow savings book and standing orders into the account for as little as £1 may be arranged. Interest on this account is paid every quarter.
The Excel account is geared towards teens. It provides an ATM card, regular statements and earns interest. The account holder may check their balance at Pass machines and decide a daily withdrawal limit of between £10 to £100. If teens keep £20 in the account for the first month, they receive a free wallet.
University students may open an Ascent account, which has no account fees for cheques, cash withdrawals, lodgements, standing orders or direct debits if the account is kept in credit. A Pass card and pay-a-bill facility are available. The account operates like a current account and pays interest. Interest rates are the same for all three of BoI's under-18 accounts: 1 per cent for amounts from £1 to £200, 1.25 per cent for £200-£500 and 1.5 per cent for £500 and over.
AIB's Junior Saver account is for those from one day old to age 13. Adults may open up the account on behalf of a child. Kids receive a free moneybox and deposit book for recording transactions. From the account holder's fifth birthday, a card is sent each year wishing them a happy birthday and reminding them of the account. The Junior Saver account receives preferential interest of 1.25 per cent, which is 1 per cent more than a standard account rate. Only £1 is required to open an account.
When children become teenagers they are eligible to transfer to a Teenlink account designed for 13- to 18-year-olds.
It recognises their new independence, wealth and need for access by providing an ATM card and Teenlink wallet. Regular statements, based on account activity, are sent to the account holder.
The same interest rate of 1.25 per cent applies and interest is paid every three months. If there are a low number of transactions, it is paid every six months. An added bonus for longer-term account holders is that there is no need to change account numbers when crossing over from Junior Saver to Teenlink accounts. This is also true when starting third-level education and opening a Plus account.
Individuals in full-time third-level education may open a Plus account. The account provides an ATM card, overdraft facilities and grant advances. No loans are available for those under 18 years of age. Interest is 1.25 per cent per annum. All students qualify for reduced rate overdrafts and student loans which are offered at 1.5 per cent less than the standard rate.
Irish Permanent offers three different accounts for children, depending on their age. The Billie Beanstalk account targets children up to seven years of age and provides them with a Billie Beanstalk bank to encourage saving. These junior account holders receive an annual birthday card and an alphabet wall chart when an account is opened with £10 or more.
The Billie Beanstalk account pays interest twice yearly, in January and July and has an interest rate of 0.10 per cent gross for deposits up to £19,999. If children make two or less withdrawals during the year, then they are given an additional 1 per cent bonus.
The Savings Scene account is appropriate for eight to 13 year olds and earns 0.10 per cent gross on balances up to £19,999. If the account is in excess of £80 for three or more months, the account holder receives a free watch. A £5 book token is also provided when children open an account with £10 or more.
The Pace savings account is for 14- to 18-year-olds and provides teens with either a Cashere card or Pass book. When opening an account with £15 or more, a free sports bag is provided. The added incentive of a £10 Golden Disks voucher if offered to account holders with a balance of £50 or more for six months after opening their account.
An Post runs a School Savings Scheme for primary school children, featuring Cyril the Squirrel. Kids may purchase 50p stamps from a post office then stick them to savings cards. Once 20 stamps are in place and the card is full the £10 worth may be lodged to a post office book savings account. Any individual over seven years of age may open a post office book.
The interest rate for amounts under £5,000 is 0.25 per cent, while sums over £5,000 are 0.5 per cent. An Post does not have products designed for secondary school students.
