Getting kids to save

2012-06-02 10:27

The best way to teach a person how to save money is to start at a young age. And it is for this reason that Nedbank launched three new accounts for children and teenagers.

Nedbank 4me is a transactional account for children under the age of 16 years. The account has no monthly management fee and it pays 2% interest yearly.

Dezign Student Current Account – with a minimum of R20 to open – is designed for teenagers between the ages of 16 and 18 years. As teens are more likely to make transactions, the account has a R16 monthly management fee, which includes certain transaction costs.

Children are further encouraged to save by transferring money from their transactional account to a Nedbank 4save savings account that pays 4% interest on balances.

The 4% is paid from the first rand and there are no monthly fees, which makes it the best short-term savings product on the market for children.

Tawanda Chatikobo, senior (youth) segment manager at Nedbank, says they are using the 4% as an incentive to encourage savings and discourage children from cashing in on their savings before they have achieved their goals.

Adds Chatikobo: “We know that South Africa has a low savings culture.

What we are doing is supporting the national agenda set by the government and instilling a savings culture in children.

We also encourage children to be good citizens through the 4growth product, which is part of the offer.”

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