Insurance Savings Accounts The Frugal Handbook

The Frugal Handbook #5: Zero Or Nothing

You’ve probably had a kids savings account at some point in your life. 

Then, you probably (hopefully) realised that there are better savings accounts that you could be using like the Jumpstart account, made the switch, and went on about your life.

But if your kids account is still open (or worse still, you’re using it), then either keep your account balance at $0, or close it completely.

This is to avoid paying a fall-below fee.

I experienced this personally when I left a small amount (<$100) in my POSB kids account after transferring my savings into Jumpstart.

I noticed a $2 deduction from my account and found out it was because I failed to meet the minimum account balance stipulated by the account.

This fee had been waived for most of my life, so I was unaware of it.

After that incident, I transferred out the rest of my savings and closed my kids account for good. 

If your account balance is $0, they wouldn’t be able to deduct the fee.

But if you ever decide to use your kids account again and transfer in money, the fee would be deducted – so you’re better off closing it for good.

I did a quick search and found out that most kids accounts now no longer have a minimum balance requirement, but I’m not sure if that’s applicable for existing accounts or only meant for new accounts.

In any case, there’s really nothing to gain from keeping your kids account, so I’d suggest closing it if you haven’t already, just to be safe.

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