Raising kids is similar somehow to construction, it takes time and
patience to ingrain values and positive behaviors in your kid’s personality,
until they reach the age of maturity so they become free to choose thus responsible
of their own destiny.
People have always thought about bank accounts as an “adult kind of a thing”, yet children can have their accounts too! Having a bank account for your child is a huge step forward in establishing financial success afterward. Although it may seem a bit exhausting at the very beginning in terms of procedures and details required to create a child account.
What is the Children's account?
A child account usually comes in two types: saving account and the default account that is affiliated with the debit card. Yet what truly distinguishes children's accounts is that it needs minimum fees for credit, it might not require any fees in some cases. This shall encourage the child to do more savings, some banks even offer special programs dedicated to kids to educate them about money and motivate them to save more of it.
What are the types of Children account?
There are four known types of children bank account:
1) Educational saving account: This account is made for educational purposes, whether it is elementary or secondary school expenses or college tuition.
2) Custodial account: These accounts were made to compensate children (anyone who is under the age of 18) from not having a saving account. A custodial account is owned by the child but managed by the adult named in this case as the “custodian”, yet the custodian is not allowed to withdraw money from this account for the sake of their own. Once the child reaches the age of maturity, the account converts to a regular saving account.
3) Joint-checking account: This account is created to serve both the child and the adult. Both parties have access to the account therefore the deposited can be used by both parties of concern. However, in most cases, parents manage to set a strict limit to avoid spending too much money in a reckless manner.
4) Interest-earning savings account: This account imposes an interest rate on the deposited money, the thing that encourages the child to save more money!
What are the 5 best children accounts in Jordan?
Some Jordanian banks provide children bank accounts, here we will mention the best five children accounts in Jordan based on our review:
1) Jeel Al Arabi account – Arab Bank: All that it takes to open this account is a minimum credit of 150 JDs, with a tiny interest rate of up to 0.25%. This account allows the user to issue ATM card thus enables him to enter the competition for the grand prize that reaches 2500 JDs. Once the account is created the user will be given a special prize, and the account is accompanied by a preferential interest rate of 0.75%, also it enables the user to transfer money from parent account to this account without extra fees. Moreover, the user is privileged with a special saving program to cover educational expenses with exemption from the first monthly installment. In the meantime, the user gets the chance to win monthly prizes in cash.
2) Sanabel Account – Bank of Jordan: This account enables the child to win valuable prizes by nominating him for a quarter-million prize! It provides the user with multiple benefits such as getting the chance to win family trips to places of wonder like Disney land in Paris, in addition to other chances to win school installments and entertaining video game consoles.
3) Mustaqbaly saving account – Housing Bank: Now it’s possible to do money-saving for your kids through this account presented by Housing Bank. There are plenty of benefits yielded from this account like the chance to win special prizes in 2019 along with some children's gifts in kind. Furthermore, it allows an easy issuance of a debit card, while adding interest in a motivational way that drives the kid to save money in the long run.
4) IBNY savings account – Bank Al Etihad: You can easily open up an account for your child and get the probability to win prizes in cash to cover school and college expenses. This account entails an interest rate starting from 1.75% and ending with 6.25% after 10 years of consecutive saving. The user has the chance to win valuable prizes up to 20 thousand JDs as in university expenses along with a 4000 JDs prize as in-school expenses for 5 winners ahead. Additionally, this account qualifies the user to be nominated for prizes in kind such as PlayStation 4, Xbox, and laptop. The account remains under the control of parents until the child reaches the age of 18.
5) Kanzy account – Safwa Islamic Bank: Safwa Bank has developed this account to encourage children to save money and ensure a decent life for them, it also gives the user the chance to win valuable prizes. Other benefits include the ability to transfer monthly installments for free from the parent account to the child. meanwhile, the child gets the chance to win monthly prizes up to 999 JDs along with being nominated for the grand prize every year that reaches 20 thousand JDs.
Now after getting a glimpse of what a child account can offer to your child, perhaps you need to think it over and let your kid make his early footprints in life’s long journey of money and finance! If you feel the need to learn more and compare children's accounts with each other, click here.
One of the most prolific problems facing Jordanians today is poor financial education and planning.... Read more