Opening a Children's Savings Account: FAQs
05 Oct 2020
Opening a children’s saving account is the most effective way to teach your kids money management and budgeting skills, as well as the value of work and reward.
Opening a children’s saving account with the credit union means they can save in a welcoming (we are known for our award winning customer service), member-owned environment at the heart of the community.
Below, we’ve included some frequently asked questions around children’s savings accounts, but depending on your local credit union, the policy can vary. Why not contact your local credit union about opening an account today?
What is a Credit Union Children’s Savings Account?
A credit union children’s savings account, sometimes known as a minor or junior account, is a savings account for a member who is under the age of 16. The savings account is the sole property of the minor in question and no one else is entitled to use it for his/her own benefit.
How to Open a Credit Union Children’s Savings Account
If a child is under the age of 16, they will generally be asked come into their local credit union with a parent or guardian to open the account.
What is Needed to Open a Credit Union Children’s Savings Account?
1. The child’s birth cert or a passport.
2. Parent or Guardian’s photo ID; (If not previously ID with a membership on file).
3. Proof of child’s address: e.g. utility bill in parents or guardians name.
4. In the Republic of Ireland, proof of the child’s P.P.S. number – letter from social welfare.
Who can open a Credit Union Saving’s Account for a child?
Although the policy can vary in each credit union, usually the child should be present with a parent or guardian when opening the account.
In some cases, for credit unions in the Republic of Ireland; if the child is not deemed old enough to withdraw money, (for example they are under the age of 7) the account may be opened by a third party (i.e. godparents or grandparents). The third party can nominate a parent or guardian to operate the account until the child is deemed old enough to sign and withdraw money themselves. (e.g. 7 years of age).
Who can Lodge Money into the Savings Account?
Anyone can lodge money into the child’s account.
Who can Withdraw from the Children’s Saving Account?
Generally, if the child is over a certain age, they are the only ones allowed to withdraw money from their account.
If they are deemed too young to sign for the withdrawal (e.g. for some credit unions, this could be under the age of 7) generally the parent or guardian are the only ones permitted to withdraw money from the account. As mentioned, if a parent or guardian is withdrawing money on behalf of the child, it can only for the child’s sole benefit.
Why would the Account be made ‘Dormant’ and who can Reactivate it?
Where a child’s savings account has not been used for a certain period of time, usually 36 months, sometimes as a security measure, the account is made ‘Dormant’. The child, parent/guardian or third party can reopen it with photo ID.
If you want to kick start your child's saving journey, why not contact your local credit union today and see how they can help?