With World’s Children Day falling on October 1. NDB Wealth recommends parents to open savings accounts to better the prospects for higher investment plans for kids, such as Kid's Saver and Kid's Saver Plus, both from NDB Wealth, which allow access to real, and smart, savings.
“Putting your money into a children's savings account, which holds it for years with only minimal interest earned, is just another way to stop you from achieving financial independence for your kids, for instance when they require it to pursue their dream career”, said Dilan Jayakody, Retail Sales Manager at NDB Wealth.
In particular, the compounding of interest, or earning interest on interest, is one very important factor that parents must consider when it comes to smarter savings, and especially long-term savings as is often the case with children.
With most banks children's savings, you earn a rate of return of around 5.5%, but with the NDB Wealth Kid's Saver plan, the rate of return increases to around 10%., The additional earnings at the end of 15 years will likely be quite significant.
Beyond earning higher interest rates only, NDB Wealth Kid's Saver and Kid's Saver Plus plans also allow for withdrawals at any time, as well as ‘ploughing back’ every rupee earned into your children's account. To get started, you can visit the NDB Wealth website to check out available plans for children, women, families and retirement income. You can even access the website's “Auto Wealth Planner” function to custom design a plan that meets your individualised financial need.
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