It’s First Communion time again for thousands of children in Ireland . At this time of year – many Catholic children get given cash gifts for their Communion . A recent survey found that the average amount was €463.
Hopefully – with the help of parents – they will try and save some or all of the money instead of spending it all.
Starting a savings account for a child is a good way of getting them in the habit of putting money aside for the future.
Most of the banks offer special accounts aimed at children. To open an account for children under 7 you will usually have to open it in the name of the adult, with child’s name noted.
For children between 7 and 12 you usually have three options for the account – it can be :
a) in the name of the adult, with child’s name noted.
b in the name of both the adult and the child
c) in the name of the child only
Bank of Ireland have a Young Savers Account for children aged 0 to 12 . The account has a bonus interest rate of 2.5% up to balances of €5,000. On balances that exceed €5,000 the interest rate is 0.25%.
Allied Irish Bank (AIB) has a ‘junior saver’ account which allows a parent to open an account on behalf of their child. They get interest of 2% currently on the first €1000 – then just 0.1% on anything over that.
EBS – Pay 1.75% on the first €5000 and they give a FREE bonus payment of €20. This will be credited to the account 6 months from account opening, if a minimum balance of €50 is saved and is kept in the account for the first 6 months from the date of opening. Age 0 to 11
PTSB pay 0.15% on their Safari Saver account
Ulster Bank have a uFirst account for children under the age of 11. They get a free Henri moneybox to save up odd change inbetween visits to the bank. Interest is 0.95% AER.
It should be possible to open any deposit acount in the name of a child – you don’t have to choose an account specifically for children – but in many cases the child accounts have better rates.
Credit unions are also worth considering for children.
Figures correct May 2019
See Other Interest Rates on Savings Accounts