OPEN ONLINE BANKING ACCOUNT MALAYSIA FOR KIDS?
Can we open online banking account Malaysia for kids?
Yes, we can open online banking account Malaysia for our kids. They are called junior accounts. This junior account is for kids under 18 years old. There is usually a restriction to types of withdrawal to encourage more savings. To open a bank account they require a low amount and most accounts only require as low as RM1. Not only that, most banks also provide an extra incentives such as free insurance coverage, coin boxes and more.
The advantage of a junior account.
- Financial education at a young age for children
If you want your children to learn the value of money and how to make intelligent choices you must believe in that. Believe that your children do what you say. Not only that they will do what they see you doing.For example if they see you saving your money they will follow and do the same thing as you. Saving now for your child’s future is a great way to start their financial education. That is because when they are already their age to go to school you don’t have to worry about their school fee. You also can encourage them to help you select the correct type of savings account and contribute a little to it.
- Help your child to familiar with saving
It will help your children to become familiar with how a banking account works. Many banks still offer passbook savings accounts. This means that your children will learn how to record deposits and withdrawals, before opening a current account.
- Require high return
A junior savings account offers higher returns than an adult’s deposit account. You can look forward to getting interest rates of up to 3.55%. But it depends on which financial institution that you choose.
- Helps them learn the value of money
By making a child deposit a fixed amount of money every month or the money they receive as a gift can make them realize that money does not grow on trees. Not only that, using the same money when they wish to buy something special for themselves will help them realize that whenever they spend it, it gets deducted from their bank account. A Saving Account will teach the child to respect money and appreciate your hard work as parents.
- Early investment and returns lessons
The little interest they earn on their savings can help them understand the importance of investment. By the time they increase their savings account balance. After that you can introduce them to other investment avenues. For example such fixed deposits, recurring deposits, mutual fund SIPs, and others. Through a recurring deposit and SIP, the child will understand the power of compounding. This will encourage them to invest as they start working.
- Make them realize the importance of investment goals
They will slowly learn to save to achieve their investment goals. That is because you make your child actively deposit their money into their Savings Account. They can use that money for their special requirements. Kids may have small goals like a Father’s Day gift to their father, a birthday gift for their friend, and so on.
But, achieving such small investment goals will teach them the importance of having investment objectives. Besides that it will stop them from spending money as soon as they receive it. That is because they start to realize that saving money for a longer period of time will have bigger rewards awaiting.