What is Children Account?
Child Account means a commercial checking Account for which Client designates a Target Balance (which may be zero or some other amount). The Child Account may also be referred to as a “Zero Balance Account” or “ZBA.” Sample 1.
Which Bank Has The Best Children Account In South Africa?
Opening a bank account for your child will help them find out how money works, why it is important to save and how saving can help fulfil their savings goals.
Depending on the financial institution there may be different requirements for opening an account such as a minimum opening deposit and proof of address etc.
As these are kids accounts most will have zero minimum balance requirements. The best bank accounts for kids have certain hallmarks. In this article, you will learn about that and get a list of banks that offer some of the best child’s accounts in the country.
One of the best ways to teach children about the importance of money is by opening a bank account for them. This way they will learn about saving and daily management of money.
JustMoney contacted the most prominent banks to compare kids’ bank accounts, to help you decide which one might be suitable for your child.
Tip: To compare accounts from different banks, click here.
What does having a bank account accomplish?
In a tech savvy and highly digitised world, opening a bank account for your child teaches them about the importance of managing their money in a safe and secure place, setting up saving goals, and making their money go further by earning interest.
The benefits of opening a bank account for children are vast and there is no one-size-fits-all answer says Cowyk Fox, managing executive of everyday banking at Absa.
In short, transactional accounts would typically allow accountholders to “manage” money, while saving accounts help people understand the power of savings, he says.
Involving children in banking decisions is a great way for them to learn about the importance of managing finances, Fox points out, and to help them develop a healthy relationship with money.
A bank account comparison
Below is the list of kids’ bank accounts from South Africa’s biggest banks and their benefits:
| Bank Name | Name of Account | Age | Opening fee | Benefits |
| Nedbank | Nedbank4Me | 0-15 years | Free | No monthly feeFree Nedbank ATM cash withdrawals and free card swipesCash deposits of up to R1 000 per month are free at any Nedbank ATM.Free internal transfers and debit and stop ordersFree inter-account transfers and balance enquiries at self-service channels including the Nedbank Money app |
| Absa | MegaU | 0-19 years | R10 | Zero monthly feesUnlimited free Absa ATM cash withdrawalsUnlimited free card swipesUnlimited free point-of-sale cash withdrawalsUnlimited free prepaid top-upsFree balance enquiries through any Absa channel (including branch)Free emailed monthly statementsFree NotifyMe SMS / email notifications so customers can monitor activity and balances in their accounts |
| Absa | MegaU Savings Account | 0-19 | R50 | As above, but interest is payable on the balance |
| FNB | FNBy | 0-18 | Free | No monthly account feeNo minimum balance requirementA personalised FNBy contactless card that can be used to purchase goods using the tap functionalityThe convenience of having an FNBy card delivered to youUnlimited free card swipesThe ability to shop online safely with Online SecureFree alerts when a transaction is made via inContact sent to both the child and parent or guardianGet cash using Cash@Till® at major retailers at no extra charge.The option for your child to manage their money on the go, wherever and whenever they want, with the FNB AppFree subscription to all digital channels, and zero data charges when using the FNB AppThe option to re-direct fees to a parent or guardian’s accountUp to 1GB back in data on FNB Connect airtime, voice, data or SMS purchases from their FNBy Account |
| Standard Bank | (sum)1 | 0-16 years | Free | Unlimited free swipes at till points10 free electronic debit transactions a monthCash withdrawals up to a value of R1350 at Standard Bank ATMsTwo free cash deposits at our ATMsFree balance enquiries on your phone50% off a TravelWallet card activation, loading and reloadingGet 250MB or R25 airtime for free every month |
Things you should consider when opening a bank account for your child
As a parent or guardian, it is natural to lean towards the bank that offers the most for the lowest price. However, Yashen Singh, CEO of premium core banking at FNB says you must consider the following when opening a bank account for your child:
- The controls that are in place for you, as parents or guardians, to have oversight of the account whilst your child is under 18.
- Ease of service and channels available (app, online banking, branch etc) for both you, the parent or guardian, and the child.
- The options that the bank offers the child beyond 18 (e.g. what are their student or graduate and professionals offerings?).
- The options the bank offers to the family as a whole (i.e. ease of transacting between parent or guardian and the child’s account, benefits to parents for opening an account for a child etc).
- The offerings/tools available to the parent or guardian and child over and above the transactional account that would be required throughout the child’s various life stages, for example educational savings, student loans, vehicle finance, unit trusts etc.
- Also consider where you bank so you can seamlessly help manage your children’s accounts, and even do inter-account transfers when needed.
Children learn by doing, so the only way to kickstart their journey to forming great money management habits when they are older is to equip them with the tools to do so.
Features of the Best Children’s Accounts
The best child bank accounts have the several key features. To begin with, they give allowance for easy access to the account through app access, online banking or mobile banking. The use of a debit card to spend and access the funds if necessary.
For motivation, the child needs to see or be show the activities on the account from time to time. These include their account balances, account notifications, interests earned, rewards and bonuses.
Best child banks also provide the cheapest and least cumbersome money transfers from the parent’s (or guardian’s) account to the child’s. Banks usually provide better internal parent and child account linkage than external ones. So as a parent, ideally the best bank for your child’s account is your bank.
Being able to monitor your child’s account lets you keep tabs on their progress. You need to know if your child is learning how to manage his or her finances as you intended.
What age should a kid get a bank card?
Children can open their own current account once they turn 16. But if they’re younger they’ll need a parent, grandparent or guardian to do this for them.
Can I open a children’s bank account online?
You can apply for a kids and teen account online
If you’re 11-15, you’ll need a parent or guardian with you to open an account (note: your parent or guardian also needs to hold a current account with us.) If you’re 16-17, you can open this account online yourself.