How should children’s red packet money be handled? 2026 Hong Kong children’s bank account comparison + account-opening guide

It is that time of year again to open red packets, and children may receive several thousand dollars in lai see money each year. Faced with this New Year income, many parents’ first reaction is to open a bank account for their children to safely put away the lai see money. However, there are many children’s accounts available on the market, with differing application requirements. Is it really worth opening one? Which children’s account is the best? Aside from bank savings, are there better ways to manage money? This time, we will analyse them one by one. 

Most major banks in Hong Kong offer children’s bank accounts, which parents can open jointly in the capacity of guardians. The account-opening threshold for children is low, and most accounts either charge no monthly fee or require only a very low minimum balance. For children who are developing money management skills, having a children’s bank account of their own can help build the following financial awareness:

• Understanding the concept of saving and allocating income between savings and spending
• Learning to read monthly statements and understand changes in the balance
• Developing the habit of making regular deposits, laying the foundation for future financial management

From the perspective of financial education, opening a bank account for children is a recommended approach. 

Many parents are unsure about which documents are required to open a bank account for a child. In general, the documents needed to open a children’s bank account for your child are as follows:

Child’s documents:

• Hong Kong birth certificate or Hong Kong Identity Card (if already obtained)
• Valid travel document (e.g. passport, required by some banks)

Parent/guardian’s documents:

• Hong Kong Identity Card
• Proof of address dated within the past 3 months (e.g. utility bills, bank statements)
• Proof of relationship with the child (e.g. parents’ details shown on the birth certificate)

Notes:

• Children under 12 are generally required to be accompanied by a parent in person at the bank to open an account
• Some banks offer online account opening services; it is recommended to check the official website of each bank in advance to confirm the latest requirements
• The required documents vary by bank; please refer to each bank’s official announcements for the definitive requirements 

Many parents will likely want to know at what age a child can open an account. In fact, most banks in Hong Kong do not impose a strict minimum age for opening an account, and even newborns can have an account opened on their behalf by their parents. However, the account opening arrangements, account functions and level of autonomy vary at different age stages. Below are the age restrictions of the major banks. 

Age Insight: 11 Is the Key Milestone

Based on arrangements across various banks, children’s accounts in Hong Kong generally use 11 years old as an important dividing line:

• Under 11: Accounts are usually opened in the name of a parent or guardian, who has full control and operation of the account. Children are generally unable to withdraw cash independently. At this stage, the account is mainly used as an introduction to financial education, helping children understand the concept of saving through a passbook.
• Aged 11 to 17: Children may obtain a “Children’s Identity Card” (marked with a single asterisk “*” on the card) and may apply for a bank account in their own name. They will be issued an independent debit card, with a relatively higher degree of autonomy, but a parent or guardian is still required to accompany them when opening the account.
• Aged 18 or above: Banks will usually upgrade a children’s account to an adult integrated account, allowing the account holder to enjoy a full range of banking services. 

Opening a bank account for children is a good start to financial education. However, if parents hope to accumulate a larger amount of wealth through savings, there are clear limitations to relying solely on a children’s bank account. 

Interest rate reality: short-lived offers, limited long-term returns

The interest rates on children’s savings accounts offered by traditional banks in Hong Kong are generally low. Although some banks do offer limited-time promotions, such as the BOC Hong Kong Kiddie Sky Savings Account, which may offer an annual interest rate of up to 2% on HKD current savings deposits during the promotion period, such offers are usually temporary in nature and are not long-term fixed rates. When making a choice, parents should carefully distinguish whether the promotional rate is part of a long-term arrangement, so as to avoid unrealistic expectations about long-term returns.

As shown in the above calculations, even when using a bank account with relatively higher market interest rates, the accumulated amount after 15 years remains limited. If the savings goal is to build a children’s education fund, cover overseas university fees, or help with a child’s property deposit, the gap will be even more significant.

Using a four-year university course in the UK or Australia as an example, including living expenses, the total cost can exceed HK$2 million. The low interest growth of bank deposits is clearly unable to meet the needs of such long-term financial goals.

Children’s bank accounts are suitable for financial education and short-term savings, but if you hope to build a larger education fund or property fund for your child, you will need to consider financial tools with higher return potential.

The greatest advantage of bank deposits is high liquidity and flexibility, allowing you to use the funds at any time. However, if the goal is to save for your children’s future education fund, or for a home purchase plan in ten years’ time, savings insurance may have the edge. 

1. Guaranteed vs non-guaranteed returns

The returns of savings insurance are generally divided into two parts:

Guaranteed returns: the minimum return promised by the insurer, as stated in the policy terms, and not affected by market fluctuations
Non-guaranteed returns: mainly come from the insurer’s investment performance and bonus payouts. These may be higher than guaranteed returns, but are not assured

In accordance with regulatory requirements, insurers set out the projected returns under three scenarios — basic, optimistic and pessimistic — in the Benefit Illustration. The most commonly used “basic scenario” is generally calculated based on the current expected investment return level, and can be used as a benchmark for reference.

2. Long-term compounding effect

One of the key advantages of savings insurance is long-term compound accumulation. The longer the holding period, the more apparent the growth effect usually becomes.

If parents start planning when their children are young, after 15 to 20 years of accumulation, the growth potential may be higher than that of ordinary bank savings. However, please note: savings insurance requires a long holding period. If the policy is surrendered early, returns may be affected and you may even incur a loss. Before taking out the policy, you must carefully calculate the future liquidity arrangements for your funds.

3. Transferable insured person, enabling wealth inheritance

Some savings insurance policies offer an option to change the insured person or a policy continuation (legacy) feature. For example, parents may later change the insured person to their child, allowing the policy assets to be passed on to the next generation. For families looking to plan their assets over the long term, such design offers greater flexibility, making the policy a tool for intergenerational wealth planning.

4. Life protection at the same time

Unlike bank deposits, savings insurance includes life protection. If the insured person unfortunately passes away during the policy term, the insurer will pay a death benefit to the beneficiary, providing an additional layer of financial protection for the family.

If you would like to know how to choose the right savings insurance, please feel free to call us or WhatsApp 37051599 to enquire with our 10Life insurance advisers.

Opening a bank account for a child is indeed a good start to financial education. However, if the goal is longer-term financial planning, such as an education fund or future home ownership, the returns from bank savings may be limited.

The advantage of savings insurance lies in its return potential and long-term compounding effect, with growth generally being more noticeable. That said, please note that these products are less liquid and the terms are relatively complex. Before taking out a policy, you should carefully assess your family’s financial situation and risk tolerance.

In fact, the two are not an either-or choice and can complement each other — bank deposits handle day-to-day liquidity, whilst savings insurance caters for long-term goals. The most important thing is to understand the characteristics of different tools, then make appropriate plans based on your child’s age, savings objectives and your family’s financial situation.

If you would like an objective comparison of the return ratings and policy term analysis of major savings insurance products in the Hong Kong market, please refer to 10Life Savings Insurance Comparison and Ratings. 

1. At what age can you open a bank account for a child?  

Age requirements vary by bank. Some banks, such as BOC Hong Kong Kiddie Sky, accept applications for newborns (aged 0), while others set the limit at under 18. For details, please refer to the comparison table above and the official announcements of each bank.

2. What documents are required to open a bank account for a child?

Generally, you will need the child’s birth certificate or identity card, the parent’s identity card, and proof of address dated within the past 3 months. Children under 12 usually need to be accompanied by a parent to visit the bank in person, although some banks also offer online account-opening services.

3. Do children’s savings accounts earn interest?

Yes, but the savings rates on children’s savings accounts at traditional banks in Hong Kong are generally low. Some banks offer limited-time promotional rates, such as BOC Hong Kong offering up to 2% during the promotion period. Parents should check whether the offer is long-term in nature.

4. Is it better to deposit lai see money in a bank or buy insurance?

It depends on your goal. If the aim is to develop good money management habits, a bank account is a good starting point. If the goal is long-term wealth accumulation, such as an education fund or a property deposit, savings insurance may offer higher potential returns, but with lower liquidity. You should fully understand the terms before making a decision. If you would like to know how to choose savings insurance, please feel free to call or WhatsApp 37051599 to enquire with our 10Life insurance advisers.

5. What is the difference between a child education fund and a children’s bank account?  

A children’s bank account is mainly for everyday savings and financial education; it offers high liquidity but lower returns. An education fund, usually structured as a savings insurance plan, is designed for long-term goals, with a longer premium payment term and potentially higher returns, but early surrender may result in losses. The two are not mutually exclusive and can be used together according to the family’s financial goals.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.