Our objective is for them to learn to save at a very early age when they see their own name stamped on a passbook. We believe it’s going to impress upon them how serious we are about their financial well-being. And that we mean what we say about the importance of saving for the future. Hopefully, that will encourage them to develop saving money as a habit.
Do You Agree?If you think along the same line and wish to open savings accounts for your own kids, I urge you to act immediately. It’s not going to get done if you don’t do it. And opening accounts for children under twelve is very simple.
I’m sure the steps to go through is similar in most banks in the Philippines. For us, we chose Banco de Oro (BDO) Universal Bank just because we find it convenient. We frequent SM malls which always have a BDO branch serving during mall hours (which means past the time when other banks are already closed). Their specific savings account for children under 12 is called “Junior Savings Account”.
Pinoy Junior SaversThis account uses a passbook. Understandably, children shouldn’t have to use ATM’s if the intent is for them to learn to save. A passbook is ideal for this purpose because it’s not as easy to withdraw from the account when using a passbook. You’d need to go through the teller usually through a long queue instead of just a machine which you can find anywhere.
Opening an account will require a minimum deposit of 500 pesos. This is also the minimum amount required for the account to earn 0.25% annual interests. When the balance gets low, make sure it does not fall below 100 pesos otherwise a penalty fee will be deducted from the account.
If you’re going to have problems maintaining even the minimum, then this account would have not served its purpose. Your kids will not learn the value of saving if nothing is being saved.
A Simple Step-by-Step GuideThese simple steps are what you need to follow to open a Junior Savings account at BDO for your children under 12 years old.
1. Go to your favorite BDO branch. This could be the one nearest your home address or the your favorite SM mall. Accessibility is very important when choosing which branch to transact with.
2. Bring the following requirements:
- Your child’s birth certificate - if newly born a non-NSO (National Statistics Office) certified is okay but otherwise NSO certification is required
- 2 government-issued ID’s
- 1 ID picture 1x1 or 2x2
- 500 pesos minimum deposit
3. Fill up and submit the forms to create the account. BDO personnel will ask you to fill up the application form which should be pretty easy to accomplish. You may need to make sure you have the basic information in memory such as your TIN (Tax Identification Number) and both of your home and permanent addresses.
4. Fill up a deposit slip for the initial deposit and submit it together with the money. Once the account has been created, you’ll be asked to go through the process of depositing the minimum deposit required. That’s 500 pesos.
5. Collect the passbook, check that the name is correct. Once the deposit is successfully completed. BDO will hand over the passbook for the Junior Account created. Make sure the name of your kid is correctly spelled before leaving the bank.
These steps prove how easy it is to open a savings account for your kids. So if you want to teach your kid the importance of saving, prove it through your actions. Open an account for him or her at your favorite bank now. The earlier the better.