Does your child have a bank account?

Justmoney recently received the following bank account question: "I want to open an account for my children. What is a good account with a high interest rate?"
Each of the Big Four banks has at least one account aimed at children 0-18, offering zero to low transaction costs as well as competitive interest rates. Justmoney has compiled a list of these accounts with some of their key features:

Absa MegaU account: 

• Initial opening deposit and minimum balance of R10.
• Low fees.
• Access to all types of banking methods, e.g.: Online, mobile and ATM banking.

Nedbank NedSave account:

• Support a good cause at no extra cost to you by linking your account to one of Nedbank's Affinities.
• Exempt from most transaction charges and account maintenance fees.
• Initial opening deposit and minimum balance of R10.

FNB Fluid account: 

• Two free debit transactions per month.
• No deposit fees.
• 20% discount at Ster Kinekor movies.
• No monthly fees if you maintain a balance of R1000 or more.

Standard Bank (sum)1 account: 

• Build in savings pocket and you can only withdraw from your savings at a branch.
• No bank charges on airtime top-up.
• Four free debit transactions and four free cash deposits per month.
• No monthly management fee.

After you have opened your child's account, it is important to teach them the basics of money management. Teach them about saving and interest earned; and encourage them to read their monthly statement. Give them savings goals, and reward them when they reach it. This will instil the idea that saving for a medium to long term goal is more rewarding than instant gratification.

Want a bank account? Do our online comparison and switch!