Every parent dreams of and prioritizes a financially secure future for their child. Teaching your children about money early in life is one of the failsafe ways to achieve this, as those invaluable hands-on experiences at a young age will help and rescue them throughout their adulthood's ups and downs.
Opening a minor or children’s savings account effectively teaches kids about the power of saving money that keeps growing over time. But that’s not all. Even to a parent, these accounts can act as a financial cushion for your kids ever so increasing education fees, healthcare costs, and other essential needs.
To encourage parents to open children's savings accounts, banks in Nepal offer lucrative benefits alongside competitive interest rates. So, let us explore these benefits and interest rates of children's savings accounts in detail.
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Similar to a Woman’s savings account, a children’s savings account is a special account for children under the age of 18. However, it is typically opened and managed by children’s parents or guardians. These accounts convert into normal savings accounts when the children turn majority.
Besides teaching the art of savings early on, children’s savings accounts in Nepal offer other attractive benefits, such as;
1. Higher Interest Rates
Unlike regular savings accounts, children’s savings accounts offer relatively higher interest rates, often 1-2% more, to encourage children's saving habits. For instance, OrangeNxt powered by Laxmi Sunrise Bank offers 5% interest in their Kids' savings account while normal savings accounts have 3% interest.
2. Discounts on Financial Products
Besides giving a ‘Piggy bank’ as a gift to the young account holders, banks also offer special discounts on financial products like internet or mobile banking, education loans, any branch banking service, etc.
3. Low Minimum Balance Requirements
Ensuring greater accessibility to every family across different income levels, most banks in Nepal lowered their minimum balance requirements for children’s accounts. For example, with Nepal Bank Limited you can open children’s savings accounts at Rs. 100 balance only.
4. Financial Security for Your Child
As the saying goes, “Little drops of water make the mighty ocean,” every saving amount, be it small or large, saved in the children's savings accounts can grow over time to provide significant security for your child’s future.
5. Involving Your Child in Financial Decisions
With their own savings account, you can involve your children in their financial decisions so they get hands-on experience in managing budgets and making wise choices. The early exposure eventually makes them wise enough when they need to navigate the financial ups and downs of life like an expert sailor.
As there are numerous banks operating in Nepal, it can be quite a hassle to find the best option with excellent services including the highest interest rates on children’s savings accounts as of 2081.
But worry not! With Saral Banking Sewa’s compare savings account tool, you can easily find out which bank is the best for opening a children’s savings account. Simply choose the bank type and select the highest interest in the sort-by option, then hit search to get an overview comparison table of banks.
With that, you can easily find out which bank is the best for opening a children’s savings account.
OrangeNxt, powered by Laxmi Sunrise Bank, offers the highest interest rate of 5% on children's savings accounts, along with a range of regular services, making it one of the most attractive options available in Nepal 2081. Meanwhile, Nepal Bank Limited offers a 4% interest rate on their Balbalika Bachat Khata with no minimum balance requirement.
Apart from them, all other commercial and development banks in Nepal have interest rates between 3% to 4% on children’s savings accounts.
Not many realize that opening a children’s savings account is not just a financial decision—it’s actually an investment in your kids' future. With a careful and informed selection of the right account with competitive interest rates and valuable features, you set your children towards a strong financial future where they can wisely navigate financial hurdles in years to come.
