From Piggy Bank to Bank Account: When to Open Your Child's First Savings Account

How to Tell If Your Child is Old Enough for a Savings Account

There is no single "right" age to open a child's savings account. You can open a joint bank account with a child under the age of 16 years, at any time.

Instead of looking at a specific age, it’s better to look for milestones in your child’s development that signal their readiness to learn the basics of money management. Here are five potential scenarios that tell you it’s time to open a child savings account:

Milestone #1: Lily's First Red Packets (Ages 2–4)

During Chinese New Year, Lily receives her first handful of vibrant red packets from doting relatives. Her parents realise that these first few dollars are the perfect opportunity to start her financial journey.

They open a savings account for Lily, explaining that they are taking her money to a "special bank" where it can "sleep and grow bigger" for a future goal, like buying that cute rabbit plushie she has had her eyes on. This makes the concept of saving tangible and positive for a young child.

Milestone #2: Alex and His Coin Collection (Ages 5–7)

Alex is a natural saver. He loves collecting coins he finds and diligently puts them in a jar. He often counts them and tells his parents how much he has. He's proud of his savings and even asks them to put his money somewhere "super safe."

This "My Money" moment is a clear sign he's ready for a child savings account, reinforcing his positive habits with a secure and rewarding tool.

Milestone #3: Maya Helps with Chores (Ages 8–10)

Maya has started to help her parents with chores, earning a small allowance for things like cleaning her room or helping with groceries.

She's excited about earning money and asks for a special place to keep it. This scenario is a great opportunity to open a kids savings account that solidifies the link between work and financial reward, allowing her to watch her earnings grow.

Milestone #4: Chloe's New Bicycle (Ages 11–13)

Chloe, now 12, has outgrown her old bicycle. She's been saving her pocket money in a small tin can and wants to buy a new one. The new bike is a significant purchase, and her small tin can isn't the best way to manage the funds.

This is a perfect moment to transition from a simple piggy bank to a formal savings account, teaching her about a secure place for her money to grow until she reaches her goal.

Milestone #5: Liam's First Job (Ages 14–16)

Liam gets his first official part-time job at a local cafe. He's excited to get his first paycheck and wants to start saving for an overseas holiday trip with his friends to Japan. This is an ideal time to help him open both a savings account and learn how to manage direct deposits to build good financial habits that will last a lifetime.

What's the Difference Between a Junior Savings Account and a Conventional Adult Bank Account?

How exactly does a savings account for kids differ from a conventional adult bank account? Let’s compare the differences.

What Can You Do with a Child’s Savings Account

Don’t look at a child’s savings account as just a place to keep money. It can actually be a great tool to instil healthy financial habits from a young age. Here are some ways you can use a savings account to teach your kid how to handle money:

• Teach Your Child the Satisfaction of Saving for a Big Goal: Use the account to show your child the power of consistent planning. Help them set a series of goals, from short-term wins (like a new video game in 3 months) to medium-term targets (like a new computer in 1 year), to teach them deferred gratification.
• Introducing the Power of Compounding: Introduce the concept of "compound returns" by offering to match a portion of your child's savings each month. For example, every S$5 they save, you deposit S$1. This way, you’ll demonstrate how money can start working for them from a young age.

What to Look for in a Child's Savings Account

When choosing a junior savings account for your little saver, look for these three key features:

1. No Fall-Below Fees: A child's savings account is about encouraging the act of saving, not punishing the lack of a large balance. Choose an account with no fall below fees so your child can start small without incurring charges.
2. Easy to Manage: As a parent, you need an account that’s simple to operate, monitor, and deposit into, such as one with an easy-to-use app.
3. Competitive Interest Rate: A strong interest rate makes saving visible and exciting. When your child sees their savings grow month-on-month because of the interest, the abstract concept of money working for you becomes a tangible, positive reward. Plus, it helps you beat inflation if you’re using the account to save for your child’s future.

Start Your Little One's Savings Journey with a CIMB Junior Saver Account

If you’re looking for a child savings account with all the features mentioned above, then the CIMB Junior Saver Account is the perfect start for any aspiring young saver.

• No Fall-Below Fees: No fall-below fees means parents have one less thing to worry about. Every dollar saved is a dollar kept.
• Visible Rewards: Up to 1.58%* p.a. interest rate credited at the end of each month makes the saving process visible and exciting for the child, providing that positive reinforcement needed to build lasting financial habits.
• Easy to Apply: Simply apply online and get your child’s account number immediately upon successful application.
• Easy to Manage: Access and manage your child’s savings account at any time via the CIMB Clicks Singapore mobile app.

Create a CIMB Junior Saver account for your child today and turn their first handful of coins into a lifetime of financial wisdom.

Sponsored content by CIMB Bank Berhad, Singapore Branch (“CIMB”). The information shared is provided strictly on a non-reliance basis and does not constitute any form of advice from FirstPage or CIMB. You should make your own assessment of your financial situation and needs and whether any product is suitable for you.

Deposit Insurance Scheme

Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.

*Terms and conditions apply. Please refer to [Junior Saver Account | Junior Savings Account | CIMB SG] for more information.