What exactly is the Alliance Buddy?
Alliance Buddy is a specially crafted savings account, made to provide a platform for parents to save money WITH their children. It is basically a joint account for a parent and their child as well as a way to teach your kids the importance and benefits of saving money.
Unlike most savings accounts, this one works similarly to a trust account in some respects. You will have free withdrawals of course, but only after a year of having the account.
What are the perks of this account?
As mentioned, this account is reminiscent of a trust account, simply because it comes with a bonus interest rate. Now to get the interest rate, you will first need to regularly deposit a minimum of RM100 per month, for 12 consecutive months. Next, of you are consistent in the deposits and don’t many any withdrawals in 12 consecutive months, then you will be eligible to earn a bonus interest rate of 10% for the year.
The interest for this account is calculated daily and will be credited monthly into your account.
What are the requirements for this account?
Well, as you know this is an account for parents and their kids, therefore to have it you must register as joint account holders. The conditions are that one account holder is an of age parent, while the other is under the age of 18, the child in the relationship.
Opening the account requires a minimum deposit of RM50. It also requires for there to be a minimum amount of RM1 in the account at all times to keep it going.
What’s the regular interest rates?
Bonus interest aside, all you need is to have a consistent balance that does not fall below RM5,000 to earn a regular interest rate. The consensus is, the higher the balance, the better the interest rate going up to 2.3%p.a. for deposits of RM100,000 and above.