When the first Royal was born, like most well intentioned parents – we set up a bank account (in trust) so that we could put away their birthday money, plus a small monthly deposit for them towards further education/car etc as they grew up.
At the time I was a new mumma and my research was very light on…I just wanted to know who had a fee free account that earned any kind of interest which was easy to deposit money into every month. Now, big surprise here – we ended up going with the bank that we do our majority banking with. And…I would hazard a guess that most parents have gone a similar path when choosing a bank account for their kids also, I mean why wouldn’t you when it’s so simple and fast to do!
The bank was lovely and promptly set up the account, linked it to our mobile apps and gave us a moneybox to take home (great teething toy for the car ride home – oops) to collect some coins along the way.
Now this is seriously genius…A it was super easy for the parents to set up the bank account and link it for the kids and B their branding is now etched on the side of said moneybox which the Royals are firmly attached to as it holds the money for their rides when we go to the shops. Absolute freaking genius!!!!
Fun fact…and only speaking from personal experience, I am also with the bank my parents use, as they helped to set up my first bank card (thought I was super posh) at the age of 16. How often do young people change banks? Let me share a little tip – being with the same bank as mum and dad meant they could transfer you cash immediately, so why would you change? Who cares that they’ve charged me in excess of $1000 in account keeping fees (per account) along the way?
Anyway, I was having a chat with one of my friends about kids and banking the other day, and she was telling me about the schools’ banking program that is in place in (apparently) lots of local schools. She was singing their praises telling me that the bank gives a portion of all money banked back to the school, they let the kids deposit money at the school office during the term, and they also do great work supporting the local community. Sounds pretty fabulous right? There was no mention if it was a fee free account (I’m guessing so) and what the current interest rate was, if the kids can withdraw money from the account at any time, and if were there any penalties for taking money out?
So I’m going out on a limb here and guessing that if these parents haven’t already set up their kids a bank account when they were born…this might be the first time they’ve even thought about it! The bank and the school have partnered together to make this such an easy account to set up – why wouldn’t you?
Sheesh…however much money the banks have spent making friends with local schools has got to be worth every single penny. They have quite possibly just secured their newest banking members who will likely be with them for life. Honestly…how much of a pain in the tail is it to switch banks? Why question or change or fix something if it’s not broken? And by partnering with schools, the banks have a steady stream of new customers coming through their doors every year when new students start…and they barely even have to do anything. The person that implemented that marketing strategy was probably given a massive bonus and employee of the century for that idea.
Might be time for a cuppa or a stiff drink…hope that wasn’t too much all at once! Here’s some quick steps for rethinking your kids financial future if you want to know more:
Find a fee free banking account
Check what their interest rate is
Read up if they have a minimum deposit amount per month
Double check if they got a bonus interest rate offer if you deposit x each month
What (if any) are the penalties for making a withdrawal
If you’re feeling a bit flustered but want to know more – there a number of places to look. Why don’t you check out Canstar who provide a review of most of the big institutions (not just the banks) but please note – it doesn’t include them all!
By doing a couple of hours of reading and comparing different financial institutions when setting up a bank account for your kids, it could make the difference between having enough money for a moped versus a semi-decent car when they are old enough to get their licence. (Obviously you’ll have to put money into the account along the way, but knowing how to take advantage of bonus interest conditions etc helps a lot.)
So if I’ve peaked your interest in any way…please have a read and chat about it after the kids are in bed tonight and I’m sure that you’ll figure out what works best for you and your family. Best of luck with your researching…would love to hear what’s worked well for you!