Teaching your children about money goes far beyond pocket change and allowances; it’s about giving them the foundation for lifelong financial security. One of the best ways to start this journey early is by opening a Children’s Savings Account.
In Cyprus, these accounts not only encourage smart saving habits but also help parents build a solid financial base for their child’s future. Whether you’re saving for education, milestones, or simply to instill financial discipline, a well-chosen account can make a lasting difference.
This guide explores how Children’s Savings Accounts in Cyprus work, why they matter and how we, at Ancoria Bank, help families set their children up for success.
What is a Children’s Savings Account?
A Children’s Savings Account is a specialized bank account created for minors under 18 years old, where parents or legal guardians act as custodians until the child reaches adulthood. The core purpose of this account is to help children develop saving habits early, earn interest on their money and build a foundation for financial literacy.
How does a Children’s Savings Account work?
Children’s Savings Accounts in Cyprus work similarly to standard savings accounts but are uniquely structured for young savers. Parents or guardians manage the account and make contributions, either on a regular schedule or whenever possible, while strict access controls ensure that only the child can access the money once they turn 18.
Deposited funds earn an annual interest rate, calculated based on the monthly minimum balance, helping the savings grow steadily and securely until adulthood. This setup not only encourages disciplined saving habits but also safeguards the child’s future funds until they are mature enough to manage the money independently.
Why is opening a Savings Account for children important?
Opening a savings account for children is important because it creates valuable opportunities for teaching children about money management and financial responsibility from a young age. It gives parents a safe, structured way to save on their child’s behalf, setting aside funds for future milestones such as education or big purchases. Moreover, they are a good long-term investment for families in Cyprus because they offer stable, interest-earning growth on deposits, protected by national deposit guarantee schemes for added security
Beyond building financial awareness, these accounts also lay the groundwork for lifelong habits and financial independence, making it easier for children to achieve their goals when they become adults. Furthermore, they encourage consistent saving habits, allowing small contributions to compound into substantial sums over 18 years, with funds earmarked for major future expenses like higher education, travel, or a first home. Their structured format, with withdrawal restrictions and parental oversight, ensures that money isn’t spent prematurely, making it a reliable financial tool for building wealth and supporting children’s future aspirations.
What are the main features of a Children’s Savings Account at Ancoria Bank?
The Ancoria Bank Children’s Savings Account is designed to help parents in Cyprus save for their child’s future while teaching them the value of smart money management.
It includes several family-focused benefits and features that encourage long-term savings growth:
- Start early: The account can be opened for a child of any age, allowing the savings to grow with time.
- Low entry threshold: Parents can open the account with a minimum deposit of €50, making it accessible for any family.
- Interest earnings: The account offers an annual interest rate, calculated on the monthly minimum balance, ensuring that savings grow steadily.
- Parental management: The account is managed by the parent or guardian until the child turns 18, when full control transfers to the child.
- No added beneficiaries: The child is the sole beneficiary, guaranteeing ownership and transparency.
- Withdrawals: Funds cannot be withdrawn before the child turns 18.
- Deposit options: Parents can easily deposit money via myAncoria, or by visiting a Banking Centre in Nicosia, Limassol, or Larnaca.
- Digital access: Parents can monitor balances and transactions through myAncoria.
- Protection: Deposits are safeguarded by the Deposit Guarantee and Resolution of Credit and Other Institutions Scheme, covering up to €100,000 per depositor.
How can parents open a Children’s Savings Account at Ancoria Bank?
Parents or guardians can open a Children’s Savings Account at Ancoria Bank by visiting any Ancoria Bank Centre located in Nicosia, Limassol, or Larnaca.
The process requires a minimum initial deposit of €50, valid identification for both the parent and child and documentation confirming guardianship or parental rights. The application is designed to be straightforward, allowing easy ongoing account management through digital channels or in-person visits.
How can children access their savings when they turn 18?
When a child turns 18, their Children’s Savings Account automatically converts into a General Savings Account, giving it full access to their funds and control over their savings. To complete this transition, the child must also open a current account in their own name, which allows them to manage, transfer and use the money freely.
This structure ensures a smooth and secure shift from parental management to independent ownership, empowering the new adult to continue building on their established saving habits.
How do Children’s Savings Accounts teach financial responsibility from an early age?
Children’s Savings Accounts teach financial responsibility by giving children hands-on experience with real money, helping them understand how saving, budgeting and goal setting work in practice. Through regular deposits from allowances or gifts, children learn the significance of delayed gratification and see how consistent saving leads to meaningful rewards, like buying a wanted item or reaching a financial goal.
These accounts also help children grasp key financial concepts like interest and tracking balances, turning abstract ideas into practical learning experiences. With parental guidance, children develop confidence in handling money, building lifelong habits of discipline, planning and financial independence.
What are the advantages of starting a Children’s Savings Account soon after birth?
Starting a Children’s Savings Account soon after birth provides long-term financial and educational advantages for both the child and the family. The earlier the account is opened, the longer the savings benefit from compound interest, allowing small, consistent deposits to grow significantly by the time the child turns 18.
At Ancoria Bank, parents can open a Children’s Savings Account with just €50, ensuring accessibility for all families while encouraging early financial planning. Starting early also establishes strong saving habits in the household. Every gift, birthday contribution, or allowance can go directly into an interest-bearing account, reinforcing the value of saving over spending.
Over the years, these accounts grow alongside the child, offering funds that can later support education costs, major purchases, or the first steps toward financial independence.
