Kids Save the Darnedest Things: Savings Accounts for Kids

There comes a time in every child's life when saving boogers, earwax and lint isn't going to cut it anymore, especially when there's so many awesome toys coming at you during every commercial break in glorious technicolour or, if you're really lucky, high-definition.

Besides, if you want any of this cool stuff, you're going to need an allowance. You know: an allowance! It's this thing where you do boring chores for your parents like the dishes or cleaning your room and if you do a good job they give you money and then you can use that money to buy the cool stuff on TV. Here's the thing though, some stuff is big enough and cool enough that you can't buy it right away, you have to be patient and save your money until you have enough. Sure, you could put it in a piggy bank, but soon that piggy bank will get much too full and you'll need something bigger to watch your money and help it grow. C'mon, all the cool kids are doing it.

Lucky for you, there are these places called banks and all they do is watch money for people and, it just so happens, they have ways of watching your money until you're ready to use it again...Of course, not just any watcher will do, you'll need a bank that watches money for kids just like you, all across Canada. Well, just for you, I have found some and they have these really cool things that they do just for kids. Neato, huh? But whatever you do, don't go blabbing to the adults.


CIBC Advantage for Youth

This account is for those 18 years and younger and features no transaction fees within the CIBC branch and ABM network. It comes with a bank card and parents or guardians can decide if they want to give their children access to telephone and online banking as well as INTERAC direct payment. Parents can also set withdrawal limits or make the account one for "deposits only".

For the kids, CIBC offers a free bank book and a companion website called SmartStart that's designed to help them learn about money. It features a game called Pig-e-Bank where you have to catch coins with a flying piggy bank as they fall from the top of the screen. There's also a calculator where kids can simulate buying an MP3 player or other cool stuff and will tell kids how long they need to save up for an item based on a weekly amount they are willing to put away.

RBC Leo's Young Savers Account

This account comes with a free bank book too and those under 19 are eligible, but the major drawback is its 15 free transactions per month. Any transaction over that cap is charged $0.50. You can write cheques, but have to pay for them as normal. The interest rate is 0.05% for balances less than $1,000 and rises to 0.2% for balances over $5,000. There are no monthly fees. Telephone and online banking are also free. In 2008, RBC launched the Family Financial Kit for parents of children between 0 to 5 to assist them in planning their family's financial future.

BMO's Plus Plan

BMO does not have an account exclusively for minors, but their Plus Plan includes no monthly fees for those under 21 or students 21 and over, which saves $8.50/month. It has 30 free transactions per month by any method and can feature a Personal Credit Reserve or Overdraft transfer service for those that qualify. Chequing, savings and joint accounts are all free as a youth or student. There are no AirMile Rewards with this account.

TD Youth Account

Available to those under 19, this account offers unlimited free debit transactions every month, including INTERAC purchases, withdrawals, transfers, electronic pre-authorized payments and cheques (although, cheques aren't available for any "My First Accounts" opened prior to March 2001). There are INTERAC ABM withdrawal fees of $1.50 each, but you get a free passbook and electronic statements. There are also many options with this plan, including online banking, telephone banking, pre-authorized transfers and the ability for the bank to match donations to the Children's Miracle Network and the Friends of the Environment Foundation.

In the US, TD launched the Wow Zone financial literacy program called the Wow Zone with animated cartoons and games that teach kids how to identify money, how to save and how credit works. The site features kids with money names like Penny Arcade, Tommy Nickels, Lucy Change and a Latino kid known as Freddie Dinero. The games can be played from Canada.


Scotiabank Getting There Savings Account

This account is available for those under 19 and with its NHL cross-promotion it's the title-holder for kids' bank accounts in Canada. The account itself features 20 free debit transactions that include chequing, cash withdrawals, bill payments, transfers and INTERAC purchases. Additional transactions cost $0.65. You get access to online banking, telephone banking and all wireless financial services. You also get free ATM access, when traveling outside of Canada, with ATMs in their global alliance.

The best part is what happens when kids open the account. From now until May 22, 2010, kids can get a cool NHL money tin and inside they will find a golden ticket with a pin number. Punch that pin number in at the Scotia Hockey Club and they could win a trip for four to the Stanley Cup Final. Plus, they can be entered into a monthly draw for either an NHL Playoff Game or a trip to the NHL Awards.