Who doesn't love the sound of a penny drop into their piggy bank. Its so gratifying whatever the age. I know that most kids would love the thought of owning a piggy bank every few years once the one they possess gets filled up and too heavy for anymore deposits. Nowadays they come in all sorts of sizes, colours and designs. Its no more the pig that owns this space. Traditionally, it probably had some significance but now it doesnt matter. As long as it has that all so famous slot, it can as creative and funky as it wants.
Where would all these savings go from time to time? I've heard they are dipped into for almost everything from toys to books and even for gaming consoles like an xbox. But is your money working hard enough for you?
There is the age old notion that its the place to go to if in times of an emergency. Maybe kids will count all they have amassed over the years and feel proud with their savings and their knack of preserving those coins for the future. However, there is a truth to this and it's something that was discovered during one of those T.V shows where families where asked to switch to more economical brands for household savings. Boring, right? Maybe, but in all that switching, one painful truth did emerge. Clearly every penny saved in the right way earns them far more than a piggy would ever do. Accumulation will no longer mean what you deposit equals your returns. There is the safety factor as well. And whats the best thing yet? The learnings that are unmatched with this option- The Bank Saving Accounts.
Its safe, reliable and your kid will pick up invaluable financial understandings that would definitely go that extra mile in making them financially independent.
So how would these work - primarily hand in hand. First don't let your deposits gather dust and simply no interest at home. It would be wise to turn them into meaningful tiny deposits and see how the money grows instead of just what you see is what you get.
There are many Indian Banks that offer Kids deposit accounts linked to your own. SBI PehlaKadam PehliUdaan, HDFC Kids Saving account, Kotak My Junior Account, ICICI Young starters, Citi Junior Account, IDBI Power Kids, HSBC Premier Junior . All of these offer attractive rates of interest with a bundle of goodies like an ATM card, withdrawal facilities and some do go that extra mile with movie tickets and discount vouchers.
Grow their interest in ways that will benefit their future. These are pretty straightforward accounts with a few restrictions but this will offer them some access to learning along the way.