From the moment you get the news of the arrival of a new member in your family, to the moment you hold your little one for the first time in your arms, you realize that the responsibility of a new life has been added to your list of responsibilities. You wish to make the best decisions for your child and ensure that all its needs are fulfilled.
However, what will happen if you aren’t there to support them or fulfill their needs in the near future? Although, life insurance can be a viable option for providing security to your child, the best option is to start Registered Education Savings Plans for your children and give them a financially secured future in return.
Benefits and Uses: During the beginning years of your child’s savings account, you will be responsible for adding money into the account, which will serve as the medium for tackling the hefty college tuition fees and other related expenses. As compared to the education saving plans, children savings account offers additional flexibility in terms of accessing the deposited money, at stages your child needs it the most, irrespective of the stages in his education life. The money deposited in the children savings account will be available at disposal as and when required, without levying any sort of penalty.
A large number of financial firms provide the children saving account services. Hence, look out for the best possible rates and least possible restrictions, when finalizing your child’s saving account service provider. Some of the banks offer children account services without any minimum age restriction. They simply demand an adult to take the responsibility of the funds, until the child acquires a certain permissible age, generally 18 years.
By investing in a children savings account, you actually create a financial cushion, which can be used by your child during the time of need. Moreover, it also provides you peace of mind that your small investments are actually accumulating to impart a better future to your child.
Apart from securing the future of your child, such an account also passes down the values of ‘responsibility and saving’ in your child. As your child grows up and witnesses his own savings account, he actually understands the true value of money and the advantages of saving. This essentially develops a financial sense within him, which can help him reap huge benefits in the future.
Moreover, your child is not liable for paying any tax against his savings. In fact, the rates offered on a children’s savings account are much higher than the savings accounts for adults.
• Children savings account are classified into different categories such as easy access accounts, notice accounts, term accounts, national savings account, junior ISA account, etc. You can choose the one suiting your needs.
• Always research well before opting for a financial institution offering saving account services.
• Select savings account service provider which provides the highest possible rates and least possible restrictions.
• Make sure to investigate all terms and conditions of the agreement.
• Make sure that the funds are always available at your disposal, when required, without incurring any penalty.
• Most of the savings account firms have online presence, so you can carry out the entire process, sitting at the convenience of your home.