Best Savings Account for Your Kids in the Philippines

If you are thinking about the best financial move you can do as a parent for your child then opening a savings account will be the best answer. You'll surely give a head start to your kid's financial success plus teach the importance of personal finance as early as today. The money you set aside in your kids savings account can help during tough college years. You can also keep the savings account as a gift once they turn 18 (legal age). 

In today's SavingsPinay post we will be focusing on the best savings account to open for your kids. I will also ponder upon the deciding factors as parents on which savings account to choose and whole lot more information. 

Let's start.

Why Open a Savings Account for Your Kids

Not all parents will think of opening a savings account for their kids especially in the Philippine culture. Plans and Insurance are a big no-no and scary financial terms that we are not yet ready to process. 

However, opening a savings account for your kids will actually become a great advantage to you and your family. A small savings account can help your child/children think better of his future. He will become instantly inspired to go to college or start a business. The savings account will give your child a savings mentality and adopt the best personal finance habit that will make him rich.

Savings Accounts in the Philippines For Your Kids

Now that you have idea on how important  savings account can be for your kids, we can now move on the different savings account in the Philippines you can opt to open. Note that there may be banks that offer savings account for kids which are not part of the list.

Banco De Oro Junior Savers

• Initial Deposit is 100pesos

• Minimum Balance to Earn Interest is 2,000pesos

• Interest Rate Per Annum is 0.25%

• Get a Junior Savers ID for free upon opening. Kids age 7-12 years old can choose an ATM Debit card which also serves as their Junior Savers ID Card.

• Flash the Junior Savers Card and enjoy discounts and freebies at participating merchants CLICK HERE.

READ MY BPI INVESTMENT FUND FIRST IMPRESSION

BPI Jumpstart Savings Account

• Designed for the youth ages 10 to 17 years old.

• Required Initial Deposit is 100pesos

• Required Balance to Earn Interest 1,000pesos

• Interest Rate per Annum is 0.25%

• Guaranteed savings that protects a portion of your child's funds from unplanned withdrawals

• Allow you to enjoy perks and/or privileges from partner merchants CLICK HERE

Metrobank Fun Savers 

• Initial Deposit is 500pess

• Required Balance to Earn Interest 4,000pesos

• Interest Rate Per Annum is 0.25%

• Receive a welcome gift upon opening, Fun Savers Club Gift Check.

• Free education trust benefit worth 50,000pesos (with minimum ADB requirement)

• Free personal accident insurance worth twice the ADB, not to exceed 1 million pesos (with minimum ADB requirement)

• Exclusive discounts and privileges from partner establishments CLICK HERE.

EastWest Bank Cool Savers Kiddie Account

• Minimum Initial Deposit is 2,000pesos

• Maintaining Balance to Earn Interest is 2,00pesos

• Interest Rate per Annum is .25%

• Access the account over-the-counter, via internet banking or mobile access.

• With Passbook for easy transaction record

READ MY SECURITY BANK UITF FIRST IMPRESSION

Security Bank Young Savers Savings Account

• Opening Balance is 100pesos

• Minimum Balance to Earn interest is 4,000pesos

• Interest Rate is 0.50%

• Receive a Passbook and/or Everyday Debit and Mastercard in one for fast transaction online, ATMs or over the counter

RCBC W.I.S.E. Savings Account

• Open to children ages 7-14 years old

• Will be opened as In-Trust-For (ITF) account for children below 7 years of age

• Initial Deposit sould be 500pesos

• Maintaining Balance is 1,000pesos

• Balance to earn interest is 5,000pesos

• Interest Rate per Annum is 0.50% 

• Get Free Personal Accident Insurance for a minimum initial deposit of 1,000pesos

• Free perks and privileges to partner outlets CLICK HERE. 

UCPB Kiddie Max Account

• Minimum Initial Deposit is 500pesos

• Minimum ADB to earn interest is 10,000pesos

• Annual Interest Rate is 0.25%

How to Open a Savings Account For Your Kids

Most if not all banks that offer a special savings account for kids will need the following requirements ready for opening:

1. Birth Certificate
2. Parent/Guardian's Valid ID
3. Kid's Two Valid ID's with your recent picture, name and signature available (if available)
4. Two 1x1 photos
5. Billing Statement for verification of home address
6. Initial Amount to Deposit

You can call or visit online your bank of choice to know more about their specific requirements.

Once you have prepared the above requirements all you have to do is visit the nearest branch of the bank and inquire. You will be asked to fill up application form and turn over your documents to the teller. You may ask the bank representative to explain to you briefly the advantage and disadvantage of the savings account you are purchasing. Then receive your welcome gift and/or ID and/or ATM after.

Things to Consider Before Opening a Savings Account for Your Kids

1. Fees and Requirements

Know whether the account has monthly maintenance fees or minimum balance to avoid future problems. Make sure that your child qualify to the requirements set by the bank. Also it is better to think whether the initial deposit needed for the kids savings account is within your budget as well as the additional investment you'll make weekly or monthly. From the above gathered list EastWest Bank Cool Savers Kiddie Account has the highest initial deposit to open.

2. Interest Rates

Of course you are opening a savings account for the benefit of your child's future. Thus, thinking about the interest rate should be part of your priority. Saving money for kids is a long time process and you might need an account that offers the best interest rate for long-term saving for the power of compounding to apply. From the above gathered list Security Bank Young Savers Savings Account and RCBC W.I.S.E. Savings Account have the highest interest rate earned per annum. 

3. Benefits to Your Child/Children

It is also important to take not of the services the ban offer to your child/children. The perks and privileges can give a huge different on your investment. From the list above Metrobank Fun Savers have a lot of benefits including education trust benefit, accident insurance and discounts from participating merchants. 

Now is always the best time to think about your kid's future. So what are you waiting for, allocate an amount to your child/children's future fund.  

Have you considered opening a savings account for your kids? Do you have any savings account recommendation? Don't forget to use the comment section below.

MORE POSTS TO READ:

1. 15 Smart Ways to Earn Extra Income
2. A Special Guide on the New FAMI Investor's Portal
3. All About Banking in the Philippines Part 1
4. All About Banking in the Philippines Part 2
5. How to Achieve Financial Stability in Your 20’s
6. How to Actually be Good in Money
7. How to Correctly Spend Your Money
8. How to Handle Bill Payments like a Boss
9. How to Make Money with a Blog in the Philippines - New!
10. No More Excuses! 7 Awesome Tips that Will Help You Stop Wasting Your Money

BDO UITF First impression

Today's post will be my very first first impression for 2016. I didn't expect that this kind of post will receive such a good response from all SavingsPinay Readers. My most viewed blog post of all time include reviews I created for particular investment vehicle like the BPI Savings/Protection Philam Life First Impression, PNB UITF First Impression and Security Bank UITF First Impression.

As always, investing your money is one way you are building a possible passive income. This will help you in the long run to not worry anymore on where to get money to maintain the lifestyle you live. You can sleep and the money will work for you. READ: How To Worry-Free Invest in the Philippines.

I have long wanted to create a blog post about BDO Unit Investment Trust Fund since this another bank that's common to Filipinos. I know a lot who started their savings account at Banco de Oro and until now enjoy the service that this established bank provides. Hope you will find this first impression of the BDO Unit Investment Trust Fund helpful.

Let's begin.

Quick Review

It's been months since I last published anything that concerns Unit Investment Trust so I know that it will be helpful to have a quick review for a second.

Unit Investment Trust Funds is another form of investment available in the Philippines where in your investments are handled with the bank.

Funds from various clients with similar investment objectives are pooled together into one fund, which the trustee invests in various types of securities with the aim of maximizing returns within reasonable risk levels.

It works the same way as a regular mutual fund only that it is managed by a bank instead. READ: UITF vs. Mutual Fund Investment (Beginner's Alert!)

How BDO Unit Investment Trust Fund works?

BDO Unit Investment Trust Fund is just any UITF accounts. Your money is pooled together with the other investors money and invested in a high-yielding assets that match the portfolio you've selected.

Their UITF products are divided in three main categories namely Peso Denominated UITFs and Dollar Denominated UITFs.

Below is the link to the Peso-Denominated UITFs from BDO:

https://www.bdo.com.ph/personal/trust-and-investments/peso-denominated-uitfs/bdo-peso-money-market-fund

Taken from BDO Website

Taken from BDO Website

Below is the link for the Dollar-Denominated UITFs from BDO:

https://www.bdo.com.ph/personal/trust-and-investments/dollar-denominated-uitfs/bdo-dollar-money-market-fund

Benefits of BDO UITF

Banco De Oro has a great track record when it comes to banking in the Philippines. It is among the top three banks today, tried and tested. Their BDO Unit Investment Trust Fund is one way they manage to give opportunities to common investor who are may be beginners or first timers to experience how investing works.

Below are the benefits of BDO UITF as seen on their website.

BDO UITFs allows you to choose a fund or a combination of funds that is/are well suited to your needs, financial requirements and life goals.  With the BDO UITFs, your common investing concerns are addressed.

Diversification

By investing in a UITFs, risks are spread out across the various investments held by the pooled trust fund.

Liquidity

While we generally recommend that you stick to your investment time horizon and  stay invested in the UITFs for a longer period of time, UITFs are designed to allow you to can redeem units of participation at any time.

Affordability

UITFs generally require a much lower minimum investment amount compared to other investment alternatives.

Better earnings potential

Greater earnings potential is achieved without having to invest large sums of money. There are opportunities for potentially higher returns due to possible marked-to-market gains on top of accrued income from investments. UITFs provide access to financial instruments not readily available to retail investors.

Exempt from reserve requirements

UITFs are not subject to reserve requirements imposed on bank deposits.  Thus, your funds earning potentials are maximized.

Professional fund management

Participating in the UITFs allows you to gain access to the expertise and services of seasoned fund managers who are able to actively monitor the markets for possible investment opportunities and managed the risks for you.

Transparency

Trust entities are required to publish the UITF price at least weekly, allowing investors to compare investment performance of various fund managers.

Regulated product

The management and administration of UITFs by Trust entities are governed by the Bangko Sentral ng Pilipinas (BSP).  Thus, aside from the yearly triple audit conducted to BDO Trust, each of its UITF is subject to a separate annual audit by an independent auditor that is acceptable to the BSP. The results of such audit may be made available upon your  request. In addition, each UITF is required to have a BSP accredited third party custodian, who is tasked with safekeeping the securities of the UITF and performing independent marking-to-market of such securities. All these safeguards redound to the protection of the UITF investors.

How to Open a  BDO UITF Account

Unlike PNB UITF thatt you can open completely online, BDO UITF requires your presence in their nearest branch. Make sure you have the following requirements when opening an account:

Basic Requirements

• One (1) set of Customer Account Record

• One (1) set of Signature Card

• Account Opening Kit:

1. Investor Profile Questionnaire (IPQ)

2. Client Investment Suitability (CIS)

3. Risk Disclosure Statement (RDS)

4. Declaration of Investor/s

5. Omnibus Participating Trust Agreement

Other standard bank requirements per type of account:

For Personal Accounts:

• Photocopy of two (2) valid IDs

For Sole/Single Proprietorship Accounts:

• Registration Certificate issued by the Department of Trade and Industry (DTI)

• Mayor’s Permit for the Current Year

• Application for Trade Name

• Valid Personal IDs of the proprietor/tress

• For the signatory/ies other than the proprietor/tress, a designation by the proprietor/tress through a Notarized Special Power of Attorney (SPA) showing the specimen signature of the officer/s or person/s authorized to operate the account and valid IDs of the designated signatory/ies

For Corporations:

• Articles of Incorporation and By-Laws

• Certificate of Incorporation (issued by SEC)

• Certificate of Filing of Officers or List of Elected Officers for the current year

• List of Directors

• List of Principal Stockholders owning at least 2% of the Capital Stock

• Notarized Board Resolution authorizing the opening of account and its authorized signatories

• Valid Personal IDs of the Signatories

• Verification of the authority and identification of the person purporting to act on behalf of the client

• Secondary license/s issued by the SEC, if any

My First Impression

BDO is a reliable bank, almost as always on the top choice for Filipinos. I believe it is BDO where I opened my first savings account. They have an online banking counterpart which is great for convenience of its customers. They have wide range of choices when it comes to UITF you can invest and people will surely find their perfect match. 

Other Pros:

1. Online Banking is available

This is nice specially if you want to trace how your fund performs but have limited time. You can have your own portal to see the fund performance, your gains or your lose and more. 

2. Good Track Record

BDO is known to many and has been serving for years already. They have branches inside malls which is pretty much convenient. I also think, based on my personal opinion, that they have the one of the most approachable tellers. Never have I visited a BDO branch where the teller has an attitude. 

3. Another Possible Option for Investment

BDO's UITF products are great possible option if you are just starting to invest. You will be guided accordingly on how you want to make your money grow. Diversification is the key here and BDO offers that to its customers. 

4. Competitive NAVPU

I was surprised to see that some of BDO's UITFs NAVPU are performing well in the market. There's a great chance for your money to grow even in short period of time. 

My top choice to invest will be the BDO Focused Equity Fund, BDO Peso Equity Fund and the Peso Sustainable Dividend Fund. 

The Con

1. High Initial Investment

Unlike my FAMI Mutual Fund which is 5,000pesos only for the initial investment, BDO requires 10,000pesos. Let's face it saving 10,000pesos is not that easy. 

Overall

I hope that this BDO UITF First Impression post helped you decide as you make a big move in terms of your finances. Note that I am not affiliated with BDO and in any bank or financial product that I create a first impression with unless otherwise stated. 

The BDO UITF is a good option for beginners. Just make sure that you have already established a good savings for as well all know, investing is a risk.

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Investment Options You Can Try With Your Bank

Last week I shared to you the many advantages of getting an online bank account. You can read the post HERE. Thank you for the positive feedback from all SavingsPinay readers. I am really happy to have shared a valuable information to everyone.

Now to keep up with all these "valuable information," I decided to give you Investment Options You Can Try With Your Bank. I know how most of us will have a savings account for our spare money. Yes, having a savings account is indeed a good primer to save money and not waste it but it won't make you achieve financial freedom.

The Basics of Online Banking

I am a big fan of internet banking. I have Metrobank Direct account for my payroll in Metrobank and BPI Expressonline account for my BPI fund. Online banking makes it easier for me to pay bills and helps me avoid long lines. 

I actually encourage people around me to open the corresponding online service that their bank provides because you can check whether the sweldo already arrived. You don't need to put your card in ATM to check.

So to further motivate everyone with the whole internet banking thing, here is a guide on the many uses of your e-bank account.