Depositing angpao money into junior savings accounts can earn higher interest.
During the Chinese New Year, the elders will give angpao to the younger generation to represent the blessings the elders bestow on the younger generation. How do parents usually handle their children’s angpao?
Parents should think about opening a child account for their children. It can first cultivate children’s saving habits, and then it can earn generous savings interest.
Several domestic banks have introduced children’s savings accounts. Maybank’s children’s savings account is called Yippie Savings Account, CIMB’s is Junior Savers Account, Public Bank’s is WISE Savings Account, AmBank’s is Savers G.A.N.G, and RHB’s is RHB Junior Savings Account.
A child under the age of 18 is usually required to open a junior savings account, and the account can be opened with a minimum deposit of RM1.00. Junior savings accounts can earn the same rate of return as fixed deposits. Furthermore, junior savings accounts may be eligible for benefits such as accident insurance.
It should be noted, however, that the junior savings account may have a monthly withdrawal limit, such as 1 or 2 withdrawals per month. When a junior savings account reaches the age of 18, it is usually automatically converted into an adult account.