Saving money is a trait that should be instilled in children from a young age, it instills responsibility and the importance of daily budgeting.
To help make it a more profitable process, try out a term deposit works for your kids too.
How does this account work?
This is a trust account, where there must be a minimum of 2 account holders, one being the beneficiary, in this case your child or the person under the age of 18.
The second holder will be the trustee, either a parent or guardian of the beneficiary of full age.
What is so great about it?
The Junior Term Deposit-i has 24hr access via Hong Leong Connect Online. It is also a bundle account with a per-requisite to open a Junior Savings Account-i along with a Junior Re-loadable Debit Card-i. So all the returns earned from this deposit will be credited into that savings account for your perusal.
All the returns earned will be credited on a monthly basis and you can view your statements online via Hong Leong Connect. However, a statement will be generated in hard copy if there are any monetary transactions that take place within the statement period and ever quarterly.
For your benefit and ease, this account also comes with an auto renewal feature that will renew the principal amount placed upon the maturity of the tenure.
Tell me more about the rates!
Okay, okay. The best part is on the way. The account requires a minimum placement amount of RM1,000 up to a maximum of RM5,000. Remember that all placements must be made in multiples of RM1,000.
The tenures available range from 3 months up to 60 months with corresponding profit rates of 3% p.a. and 3.05% p.a..
Anything else I need to know?
Well as this is a Junior account, the beneficiary should be below the age of 18. There must also be a trustee assigned to the account, either a parent or guardian to the beneficiary.
Trustees are required to provide evidence of their relationship with the beneficiary in black and white. Lastly, this is a Shariah compliant product but is not limited to Muslims only. It is open to everyone of all races and religions.