Ninongs and ninangs in the Philippines are oftentimes caught in frenzy when the first week of December comes. Ideas run out on what items they can give to their inaanaks as Christmas gifts or more popularly known as aginaldo.
(Note: For the sake of our non-Filipino readers, the terms ninong and ninang pertain to baptismal/confirmational godfather and godmother of Filipino children. Inaanak refers to godchildren. Aginaldo was derived from the Spanish word Aguinaldo which means any Christmas gift received by godchildren from their godparents. Other Hispanic countries also use this term to describe such gifts during Christmas.)
Instead of rushing our way through the heavy traffic to catch the mall sale, I have one suggestion for the godparents. Bring your godchildren to the nearest bank and help them out in opening their first savings accounts.
Did you know that the Philippine has a law that allows any child who can read and write at the age of at least seven years old to legally open a savings account, time deposit, withdraw, deposit using their own names and signatures? Presidential decree no. 734 only requires the parents or guardians an initial minimal deposit and any form of documentation of the child like the child’s birth certificate, school I.D., or baptismal certificate along with two valid I.D.’s of the parent or guardian. It’s that easy. 😛
Don’t you worry, rich ninongs and ninangs. Opening a bank account for each of your gazillion inaanaks need not cost that much.
Let’s shop around which banks offer savings deposit products for kids and teens with the lowest minimum initial deposit and the lowest maintaining balance.
BDO Unibank, Inc.
Junior Savers Club – This deposit product is designed for children aged 12 years and below. It comes with a specially-designed passbook and an ATM card* for children ages 7 to 12. (*ATM card is provided for those with a minimum deposit of Php2,000) They can also enjoy perks and privileges from selected store affiliates for kids.
Initial deposit requirement Php 500.00
Minimum monthly allowable deposit balance (ADB) requirement Php 100.00
Minimum balance to earn interest Php 500.00
Interest rate per annum 0.375%
Power Teens Club – This deposit product is designed for teens aged 13 to 19 years old. It comes with a specially-designed passbook and an ATM debit card that can be used as a shopping card at selected establishments.
Initial deposit requirement Php 2,000.00
Minimum monthly allowable deposit balance (ADB) requirement Php 2,000.00
Minimum balance to earn interest Php 2,000.00
Interest rate per annum 0.3750%
BPI and BPI Family Savings Bank
Jumpstart Savings – This is perfect for kids aged 10-17 years old who regularly receive allowances from your parents. It has an ATM debit card that can be used at shops while getting discounts and exclusive privileges. It can also be used to reload cellphones at any BPI Express Teller ATM, via phone at BPI Express Phone 89-100 or BPI Express Mobile, or through the internet via BPI Express Online.
Initial deposit requirement Php 100.00
Minimum monthly ADB requirement Php 1,000.00 (BPI) / Php 500.00 (BPI Family)
Minimum balance to earn interest Php 1,000.00
Interest rate per annum 0.375% (BPI) / 0.625% (BPI Family)
Fun Savers Club – Metrobank encourages ninongs and ninangs to purchase a Fun Savers Club gift check at any Metrobank branch over-the-counter for a minimum of 500 pesos. Anyone can purchase this gift check, whether you are a Metrobank depositor or not. Your inaanak should at least be younger than 18. This gift check can be used by your inaanak to open a Metrobank Fun Savers Club or add to his/her existing Fun Savers Club account.
Initial deposit requirement Php 500.00
Minimum monthly ADB requirement Php 500.00
Minimum balance to earn interest Php 4,000.00
Interest rate per annum 0.25%
Other Kiddie Savings Accounts From Major Philippine Banks
There are also a handful other kiddie savings accounts being offered by other banks in the country that participates in the program of the Bangko Sentral ng Pilipinas called “Banking for Your Future Kiddie Savings Program” which was launched in 2011.
Take time to visit the following sites to know more about the kiddie savings programs of these banks.
- RCBC Wise Savings Account
- EastWest Bank Cool Savers Kiddie Account
- UCPB Kiddie Max Account
- DBP Young Earners’ Savings Accounts (YES)
- RobinsonsBank Tykecoon Kiddie Savings Account
- Maybank Yippie Savings and IM Teen Savings Accounts
Be a generous godparent this Season. Be a good guardian and an advocate of personal finance.
You will be like the star that will guide and lead your inaanaks towards their Bethlehem of financial freedom.
Again, don’t forget to bring the following when going to the banks. Be sure to ask for permission first from their parents, of course.:
- Birth certificate of the child.
- School ID of the child. (Some banks accept enrollment cards when school ID’s were not issued)
- ID Photos of the child
- Your IDs and photos, for verification purposes
- Baptismal certificate of the child (Not all banks may require this)
- Proof of address such as the recent utility bill or credit card statement of the child’s parents (awkward. hehe.)
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photo credit: Ken Teegardin