Opening a bank account on behalf of a child is considered one way of introducing them to the basics of money management. Both digital and mainstream banks in the UAE offer savings accounts for minors, though the law requires a parent or guardian to open and jointly own the accounts.
Money behaviours and habits that individuals carry with them for their whole life are reportedly established as early as age seven.
Want to ensure that your child learns money management at a young age? Here are the best savings accounts for kids in the UAE:
Bank: Abu Dhabi Islamic Bank
Savings account: Amwali
Abu Dhabi Islamic Bank’s (ADIB) Amwali savings account caters to children who are between the ages of eight and 18 years.
The bank account requires no minimum balance and is designed to teach children about money management.
Amwali can be opened by the legal guardian or custodian of the child. Opening the savings account requires the legal guardian or custodian to be an account holder and have an active relationship with ADIB.
The savings account provides various facilities such as sending and receiving money, tracking daily spending and creating saving goals.
NB: The minor’s Emirates ID, passport and residence visa (for expatriates) are required to open an Amwali savings account.
Bank: Abu Dhabi Islamic Bank
Savings account: ADIB Banoon Children
ADIB also offers Banoon Children’s account. The savings account comes with a free Darhoom prepaid card and requires no minimum balance.
The Banoon Children’s Savings account can be opened by the mother on behalf of their children under the Hiba contract or by the father under the Mudarabah contract. This Sharia-compliant investment account requires an initial deposit of Dhs1000.
To be eligible for the savings account, the child must be below 18 years old.
NB: Passports (guardian/parent and the child), Emirates ID (guardian/parent and the child) and valid visas for expatriates (guardian/parent and the child) are required to open the account.
Bank: Mashreq Bank
Savings account: Mashreq Neo NXT
Mashreq unveiled the Neo NXT account in June 2022. The bank account is designed specifically for teenagers and the parent or guardian must be an existing customer with Mashreq.
Neo NXT offers account holders a free debit card and parents can set monthly allowances for their children. Neo NXT is a no-fee account. Parents can open an account for their children online or by visiting the nearest bank branch in person.
NB: Emirates ID of the minor is required to open a Neo NXT account.
Bank: Dubai Islamic Bank
Savings account: Shaatir Savings Account
Dubai Islamic Bank’s (DIB) Shaatir Savings Account requires no maintenance fee and/or no minimum balance. The savings account comes with a debit card and balance enquiry facility. The account offers minors an educational journey in money management.
NB: To open an account, a parent and/or legal guardian should submit an account opening application form, Emirates ID (guardian/parent and the child), passport (guardian/parent and the child), valid residence visa (expatriates) and proof of physical residential address such as utility bill.
In addition to these documents, you will also require the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) Declaration signed at the time of application.
Bank: Emirates NBD
Savings account: EarlySaver Account
Emirates NBD EarlySaver Account is a bank account for minors that promotes habits of savings among kids and helps parents build a corpus for them. To open an EarlySaver Account, a parent and/or legal guardian needs to have an account with Emirates NBD.
The account, which can be opened in the parent’s name, comes with a supplementary debit card for the minor. The EarlySaver account allows a 12-month deposit with auto rollover and interest rates are estimated on the daily closing balance and credited every month.
NB: Emirates ID and passports of both the minor and a parent and/or legal guardian are required to open the bank account.
Bank: Al Maryah Community Bank
Savings account: Eyalna
Al Maryah Community Bank Eyalna Minor Account is available to minors/individuals below the age of 18 years and requires no minimum balance. The bank account can opened by a parent or legal guardian on behalf of a minor through the ‘Mbank UAE’ mobile application.
The account allows minors to build healthy money habits and manage personal finances at a young age. It comes with an Mbank gold debit card and the bank will convert the account to a normal independent account when the holder is now more than 18 years old.
NB: To open the account, UAE nationals require Emirates ID only while expatriates need Emirates ID, passport and residence visa.
Bank: Sharjah Islamic Bank
Savings account: Hassalati
Sharjah Islamic Bank (SIB) Hassalati account is available to minors below 18 years old and requires a minimum balance of Dhs500. The account, which is aimed at teaching the value of saving to future generations, can be opened by the father or legal guardian of the minor.
NB: Emirates ID, visa and passport (for both guardian/father and minor), copy of the child’s birth certificate and initial deposit of Dhs100 are required to open the account.
News Source: Gulf Business
