Can Kids Have Term Deposits?
At First Credit Union, we believe it’s never too early to start building good financial habits. Many parents wonder whether a term deposit is an option for children. The answer is yes, and they can be a fantastic way to introduce young ones to the world of smart money management.
Typically, a parent or guardian must open and manage the account on the child’s behalf until they are old enough to take over (usually 18). This provides a great opportunity to teach important lessons about saving, patience, and how money can grow over time.
Why Consider a Term Deposit for Your Child?
- Teaches Financial Discipline: Putting funds away for a set term helps kids learn patience.
- Better Returns: Unlike other investments, term deposits offer fixed returns, and a better interest rate.
- Goal Based Savings: Perfect for long-term goals like university funds, a first car, or future expenses.
At First Credit Union, we’re committed to providing products and services that support our members in achieving their financial goals. By starting these conversations early, parents can equip their children with financial knowledge that will serve them for life.
Ready to start your child’s savings journey? Contact us today to discuss your term deposit options and make the most of your savings!