While adults may be struggling to put money away in a savings account, a new generation is learning early about the benefits of tucking some money away for a rainy day. More parents than ever before are teaching their kids about the benefits of saving and helping them set up an account. So this brand new pool of up and coming consumers is becoming the target of banks in general. Everyone wants these kids’ money.
Offering Special Benefits
Many banks are offering incentives for children that open up a savings account. Some offer to match a small portion of the opening deposit. Others encourage children to make frequent deposits by providing prizes each time the child comes in. The goal is to reward the child each and every time they decide to save.
Replacing Other Customers
It is no secret that consumers are starting to make major changes when it comes to their finances. Some are moving their accounts over to a different bank that offers a better benefits program or doesn’t have excessive fees. Others are just closing their accounts all together because saving is no longer a real possibility.
Each of these customers leaves the bank with a void. They need to bring in new customers and who better to fill in the gap than a child saver. For the most part, they aren’t expecting to have large amounts deposited regularly. They know that small amounts will come in consistently and usually, the money is going to stay in the bank for an extended amount of time. There is no need to worry about checks, a debit card, or even transfers. The child’s account is just going to stay the same.
Opportunity to Create Bank Loyalty
Getting a new customer at such a young age gives the bank an opportunity to gain a customer for life. When a child comes of age, they are not going to immediately withdraw all of their money and move on. Chances are that when that child is ready to set up a checking account, it makes sense to head to the same bank that handles the savings account.
While it starts with just one small savings account opened by a child, there is a real possibility that the professional relationship will grow. One day that child will need a credit card, a mortgage, or even a car loan. Because this relationship is already established, it makes sense to stick with the same bank.
For a parent looking to help their child to set up a savings account, there are multiple resources available to find the best deal and the best program, such as Money Super Market. Parents can browse through the different options and decide which option will be best. This first savings account is an important step in the child’s financial future.
Article submitted by Andrew at MoneySupermarket
Banks Are Seeking New Young Customers
