Bank accounts designed for children and young people often include promotional incentives to encourage account opening and financial engagement. These incentives range from physical gifts to fee waivers and digital rewards. The availability and nature of such offers vary significantly by region, banking institution, and time period. This article details the types of freebies and benefits associated with children's bank accounts as documented in historical and current banking literature.
Historical Promotional Gifts and Incentives
Historically, banks have used tangible goods to attract young customers. A notable example from the past involved HSBC, which operated under the Midland brand for youth accounts. According to source material, for children between the ages of seven and 17, the bank provided a comprehensive set of free items upon opening an account with a deposit of £10. This package included a sports bag, a project folder, a dictionary, a maths set, a magazine, and a home bank file. All items were branded with the bank's cartoon Griffin character.
In the broader market, banks expanded promotional efforts to university students, offering incentives such as free young person's railcards, HMV vouchers, book tokens, and other assorted freebies. These offers were designed to capture the demographic of increasing university attendance. Additionally, the introduction of the Child Trust Fund (CTF) by the government included a cash gift to kick-start savings, although this was a government initiative rather than a bank-specific freebie. The CTF was later replaced by the Junior ISA, which, according to the source, failed to gain similar traction due to the absence of a government cash incentive.
Modern Fee Waivers and Digital Benefits
In contemporary banking, particularly in South Africa, freebies have largely transitioned from physical goods to fee waivers and digital access. The Standard Bank (sum)1 account is described as a youth account for children up to the age of 19. It features zero monthly fees and an opening cost of R10. The "freebies" associated with this account are primarily the elimination of transaction costs, including: - Unlimited free Absa ATM cash withdrawals - Unlimited free card swipes - Unlimited free point-of-sale cash withdrawals - Unlimited free prepaid top-ups - Free balance inquiries through any Absa channel (including branch) - Free emailed monthly statements
Similarly, FNB offers the FNBy account for children below the age of 18. This account has no opening cost and includes a suite of digital and fee-related benefits: - No monthly account fee - No minimum balance requirement - Unlimited free card swipes - Free alerts when a transaction is made via inContact - Access to the FNB App - Free subscription to all digital channels and zero data charges when using the FNB App
Nedbank4Me is another transactional account for children up to age 16, featuring no monthly maintenance fee, no opening costs, and free Nedbank ATM withdrawals and inter-account transfers. ABSA MegaU is a youth account for those up to age 19 with zero monthly fees and an opening cost of R10.
In the United States, banking institutions offer different types of incentives. HAPO provides a "FREE Checking" account with no monthly fee and no minimum balance required, described as having "all the freebies that a checking account should have" under a philosophy of Fee Fairness®. For younger members, HAPO offers surcharge-free coin machine access. Island Federal Credit Union promotes financial literacy programs where children can earn rewards like gift cards or freebies when specific goals are met.
Modern Banking Platforms and Subscription Models
The landscape of children's banking in the U.S. has also evolved into specialized financial platforms. Chase First Banking, developed in partnership with Greenlight, is a fee-free option available to children of Chase checking account holders. It offers parental controls and spending limits but lacks direct deposit and investment features.
Greenlight represents a subscription-based model, offering a family plan covering up to five users for a starting monthly fee of $5.99. This platform provides budgeting, savings, and charitable giving tools, as well as access to stock market investing. While not free in the traditional sense, it offers a "free" trial or entry into advanced financial management tools for a fee.
Conclusion
The nature of freebies associated with children's bank accounts has shifted from physical branded merchandise to digital benefits, fee waivers, and educational rewards. While historical offers included tangible items like sports bags and stationery, modern accounts prioritize transactional freedom (unlimited free withdrawals and swipes) and digital access (apps and zero data charges). In the U.S., the market includes both fee-free traditional banking options like Chase First Banking and subscription-based platforms like Greenlight that offer advanced financial tools as part of their value proposition. Consumers are advised to verify the specific terms, fees, and age restrictions directly with financial institutions, as these details are subject to change.
Sources
- Standard Bank (sum)1 and ABSA MegaU Account Details
- Historical Bank Promotions: HSBC Midland and Child Trust Funds
- Island Federal Credit Union Financial Education Programs
- Comparison of Modern Banking Platforms: Chase First Banking and Greenlight
- HAPO Credit Union Membership Benefits and Fee Structures