When our boys were little, we opened children’s savings accounts for them at the big bank where we had our mortgage and chequing account.
I encourage you to put more work into this choice than I did. Prompted by a recent question from a reader, I went back and looked at the current details for that same account our boys had. The interest rate was listed at 0.01 per cent.
All the major banks have accounts for kids, and the features are generally similar. No minimum balance, no monthly fee, unlimited debit purchases and sometimes unlimited e-transfers as well. The interest rate is another matter. Most banks hid the actual interest rate so well I gave up trying to find it.
The reader I mentioned has kids aged 7 and 10. “What are the best bank accounts for children in Canada?” she asked. “Ideally, no fees and a savings rate so they can understand compound interest.”
I’m throwing this question out to you readers for suggestions, which you can e-mail to me at email@example.com. Meantime, the best option I found was the Tangerine Children’s Savings Account. The prominently displayed interest rate was 1.1 per cent as of early April, which is nothing special.
Another account that caught my eye was Canadian Imperial Bank of Commerce’s Smart Start, which takes a young person to age 25 with no monthly fees and unlimited debits and e-transfers. But, interest? I couldn’t find a mention of it on the CIBC’s online product page.
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Rob’s personal finance reading list
The outlook for affordable groceries
This Q&A on high grocery prices ends with the sad reality that food prices are never going back to their levels before inflation spiked. Two future price pressures are new standards for packaging, and higher pay for workers.
And the winner is …
Ratehub.ca picks the best savings and chequing accounts, plus GICs and more. Worth a look if you want to compare your current accounts.
The world’s biggest tourist traps
A list to help you with your travel planning and spending. Niagara Falls ranks seventh. It’s a total tourist trap, but kids love it.
Looking farther afield for housing
The Beaverton on how the Canadian chosen this week to orbit the moon as part of a NASA team will be scouting for affordable housing.
Today’s financial tool
A helpful primer on the difference between tax credits and tax deductions.
The money-free zone
A song about a pet tortoise – Gary Ashby, by Dry Cleaning. In that popular current Irish and U.K. style of talk-singing (Shame, Fontaines D.C., IDLES), with great guitar work.
Personal finance blogger Jessica Moorehouse on how income tax works, including a look at what differing provincial tax rates mean. She also blows up a few tax myths
From the twitterverse
A discussion on the best ways to fund your child’s postsecondary education, including registered education savings plans and more.
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More Rob Carrick and money coverage
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