Opening a Kiddie Savings Account is a great way to start your child's saving habit. A Kiddie Savings Account is a type of bank deposit product that is typically affordable because it aims to encourage children and young adults up to 18 years of age to start saving money in a bank account.

The Bangko Sentral ng Pilipinas (BSP) no less encourages parents, teachers, and guardians to expose their children to the habit of saving money at a young age. Starting youngsters early on familiarizes them with the banking system, thus, giving them the knowledge to confidently deal with banks as well as other financial institutions.

Having a savings account also instills among young ones the value of responsible spending, delayed gratification, and investing.

In the Philippines, only 22.6% of the total adult population owns a savings account according to the 2017 Financial Inclusion Survey conducted by the BSP. That means a staggering 77.4% of the population does not have a savings account.

Among the reasons cited for not having a bank account include, among others, lack of money, no awareness, as well as not seeing the need for it. If most Filipinos were exposed to banking early on, the habit of saving funds, whether for emergency or foreseeable expenses, would be part of their lifestyle.

Kiddie Savings Account versus Banking On Your Future (BOYF) Kiddie Account

In the Philippines, there are two most practical ways by which parents can start a savings account for their children. One is through the Kiddie Savings account and the other one is through the Banking On Your Future (BOYF) Kiddie Account. Both are evidently targeted at children. However, the difference between the two lies in the features and the requirements.

Kiddie Savings Accounts are deposit account variants offered by most banks in the Philippines. Here is an example of the features which are more or less the following:

• Initial deposit: Php500
• Minimum maintaining balance: Php500
• Minimum balance to earn interest: Php500
• Interest rate: .50% p.a.
• Documentation: Passbook
• Other requirements to open a Kiddie Savings Account are the following:
• Filled-out Customer Information Form
• Latest 1×1 ID picture
• One (1) original valid ID for presentation to the branch and a clear copy of that valid ID (bearing photo and signature of the client) for submission to the branch.

For children below 7 years old, the savings account must be opened via an In-Trust For (ITF) arrangement. That means the parent or guardian accompanying the child must present one (1) valid photo-bearing identification document

Here is a list of some local banks that offer Kiddie Savings Accounts:

• Product Name: Easi-Save for Kids
• Initial deposit: Php500
• Minimum maintaining balance: Php500
• Minimum balance to earn interest: Php500
• Interest rate: .50% p.a.
• Documentation: Passbook

• Product Name: Junior Savers
• Initial deposit: Php100
• Minimum maintaining balance: Php100
• Minimum balance to earn interest: Php2000
• Interest rate: .25% p.a.
• Documentation: Passbook

• Product Name: Fun Savers Club
• Initial deposit: Php100
• Minimum maintaining balance: Php500
• Minimum balance to earn interest: Php4000
• Interest rate: .25% p.a.
• Documentation: Passbook

• Product Name: Kiddie Savings
• Initial deposit: Php2000
• Minimum maintaining balance: Php2000
• Minimum balance to earn interest: Php2000
• Interest rate: .25% p.a.
• Documentation: Passbook

• Product Name: Junior One Account
• Initial deposit: Php100
• Minimum maintaining balance: Php5000
• Minimum balance to earn interest: Php5000
• Interest rate: .5% p.a.
• Documentation: Passbook

• Product Name: Jumpstart Savings
• Initial deposit: Php100
• Minimum maintaining balance: Php1000
• Minimum balance to earn interest: Php2000
• Interest rate: .25% p.a.
• Documentation: Passbook

• Product Name: Jumpstart Savings
• Initial deposit: Php0
• Minimum maintaining balance: Php0
• Minimum balance to earn interest: Php2000
• Interest rate: .25% p.a.
• Documentation: Passbook

• Product Name: Kiddie Builders Savings Account
• Initial deposit: Php500
• Minimum maintaining balance: Php500
• Minimum balance to earn interest: Php1000
• Interest rate: 1% p.a.
• Documentation: Passbook

• Product Name: GoSavers
• Initial Deposit: Php100
• Minimum maintaining balance: None
• Minimum balance to earn interest: Php5000
• Interest rate: 0.15%
• Documentation: Passbook and ATM card

Keep in mind that this list is not exhaustive. There may be other banks that offer Kiddie Savings Accounts that are not on this list. For the complete features and requirements, visit your local bank or check its website.

The BOYF Program, meanwhile, is a financial education and savings promotion project launched by the BSP in partnership with the Bank Marketing Association of the Philippines (BMAP). The idea behind BOYF is for banks to partner with schools, hold financial literacy talks and activities among school children, and encourage students to open accounts.

BOYF Kiddie Account normally carries the following features:

• Initial deposit: None
• Minimum maintaining balance: None
• Minimum balance to earn interest: Php500
• Interest rate: .50% p.a.
• Documentation: Passbook

Opening a BOYF Kiddie Account is a lot easier as compared to a Kiddie Savings Account as children are only required to present their school ID and filled-out customer information form. Account opening is done within branches as deposit account opening outside branches is against BSP policy.

Currently, there are 13 banks, all members of BMAP, that offer BOYF Kiddie Accounts. These are: BDO, BPI, China Bank Savings, DBP, EastWest Bank, Maybank, Metrobank, PNB, PSBank, Veterans Bank, RCBC, Security Bank, and Sterling Bank of Asia.

Most of these banks accept walk-in applicants but just to be sure, always inquire about the products they offer as well as the account opening requirements.

To summarize, here are the things that you need to keep in mind when opening a Kiddie Savings Account or BOYF Kiddie Account for your child:

Ensure that you have the complete documentary requirements needed to open an account. You may call your local bank or visit their website to check for these.

• Bring a 1x1 recent photo of your child.
• Bring one (1) valid photo-bearing ID, both yours and your child’s.
• For In Trust For (ITF) accounts (children below 7 years old), bring one (1) valid photo-bearing identification document.
• Go to your preferred bank and fill out an account opening form.
• Make an initial deposit if this is required.

That’s it! However, guiding your child toward financial literacy ultimately depends on you. Teach them the value of saving and spending only on necessary items. On the other hand, do strike a balance by rewarding them for a job well done. Remember, they also have to learn the value of responsible spending.

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