Benefits of saving for children

Can children have their names on a savings account?

Clause 2, Article 3 of Circular 48/2018/TT-NHNN stipulates that a depositor must be 18 years of age or older, a Vietnamese citizen with full civil act capacity as prescribed by law. If a Vietnamese citizen is under 18 years of age, the following conditions must be met:

- Vietnamese citizens from 15 years old to under 18 years old who do not lose civil act capacity or have limited civil act capacity according to the provisions of law.

- Vietnamese citizens under 15 years old or with limited civil act capacity or without civil act capacity according to the provisions of law who conduct savings transactions must do so through a legal representative; Vietnamese citizens with difficulty in cognition and behavior control according to the provisions of law who conduct savings transactions must do so through a guardian.

A savings book for children is a book that customers open and deposit money in, but the person whose name is on it and who uses the money in the book is your child and you are the guardian of that savings book.

Benefits of opening a savings account for your child

Opening a savings account for children is increasingly attracting the attention of many parents because of its outstanding advantages:

Low risk

The bank is responsible for ensuring the safety of the customer's savings book in any case. Therefore, there are almost no financial risks when making a savings deposit.

High profitability

Saving for children has many outstanding advantages. (Illustration photo)

Saving is one of the forms that bring stable profits. Money in a savings account for children does not stand still but accumulates and generates interest over the years. If parents save money for their children early, when they reach adulthood, they will receive a large amount of principal and interest.

Flexible opening/withdrawal of savings books

During the process of saving for their children, parents can withdraw money at any time with very simple procedures. If they withdraw money before the maturity date, parents will still receive non-term interest.

Things to note when opening a savings account for your child

When opening a savings account for a child, customers should note the following issues:

Choose a reputable bank

Banks offer many deposit packages to attract customers. Savers for their children should choose reputable banks to get the best and safest interest rates.

Minimum deposit amount

Opening a savings account online or opening it directly at the bank also has differences in the minimum deposit amount. Customers should refer to the website or go directly to the bank for specific advice.

Interest payment method

If you do not plan to use this money, you should choose the interest payment method at the end of the term. If you need a fixed monthly amount, you can choose to pay interest in advance or pay interest periodically.

Check personal information in the contract

There have been many cases of information errors in the savings account opening contract. The consequence is that it takes a lot of time to handle problems when the contract expires. Therefore, you should check the personal information in the contract carefully to avoid unfortunate situations.

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