Tuesday 14 May 2013

Singapura Finance - highest interest bank account for children

Heard about this new promotion from Singapura Finance for children below age of 15:

Open a Singapura Blue Sky Junior Savers Account between 30 March 2013 and 30 June 2013 with a minimum amount of $500 and get a coin bank and instant cash credit of $30.

However, the $30 cash credit is fixed, even if you deposit more than $500.

That's an instant return of 6% for your kid.  But you must maintain the account for minimum 12 months.

Beside the instant interest, the account is paying 0.375% interest p.a., with interest crediting into the account every month.  Assuming that your kid is keeping the $530 for one year, it will generate $1.99 interest for the year.  This will give a net interest of 6.398% p.a. for your initial deposit of $500.  Effectively this is the highest return that we can get from bank saving accounts nowadays.

This is a good starting bank account for children.  Parents could deposit children's "angpow" (red packet) money into this account.  Children also could be taught the good habit of savings when they are young and see their savings grow. 

It is always good to have a head start on the road towards Financial Freedom.

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