Post-Spring Festival "Red Envelope Savings" Sparks a Trend

This article is reprinted from Shangqiu Daily

Post-Spring Festival “Red Envelope Savings” Sparks a Trend

Children’s Savings Accounts Become a New Favorite for Family Financial Management

Reported by Rong Media Journalist Liang Xiaocheng and Huo Tianyan

On the seventh day of the Lunar New Year, the festive atmosphere is still strong, and major bank branches in Shangqiu city have already experienced the first peak in business after the holiday. On February 24, reporters visited branches of Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Postal Savings Bank, and Zhongyuan Bank, discovering that parents bringing children to open “Red Envelope Savings” accounts are coming in an endless stream. Thanks to higher interest rates than regular adult fixed deposits, children’s exclusive savings accounts have become a popular choice for family financial management after the holiday, reflecting a subtle shift in citizens’ financial awareness.

At a state-owned bank branch on Shenhuo Avenue, Ms. Li, a resident, held her 9-year-old daughter’s hand while filling out a savings form. On the counter, neatly arranged were the child’s household registration booklet and a stack of red envelopes. “Deposit 10,000 yuan for three years, with a children’s exclusive interest rate of 1.55%. At maturity, I will get 465 yuan in interest, which is much more cost-effective than saving as an adult,” Ms. Li said with a smile. She explained that in the past, most of the red envelopes given to her child were spent casually, but now she saves them as education funds, which can steadily appreciate and also serve as an opportunity to teach her child to be thrifty and save scientifically.

The reporter compared interest rates across several banks and found that savings accounts for children have clear advantages in returns. The one-year exclusive interest rate for children ranges from 1.1% to 1.15%, while regular adult fixed deposits are only 0.9% to 1.15%. The three-year exclusive rate for children is uniformly 1.55%, while adult fixed deposits fluctuate between 1.1% and 1.55%. Notably, some banks require adult customers to deposit at least 200,000 yuan in large-denomination certificates of deposit to enjoy the same interest rates as children.

In addition to fixed deposits, many families also choose “mixed financial management.” “More than half of parents split the red envelope money into two parts—one for fixed savings to ensure stability, and the other to buy financial products for higher returns,” said an employee at a branch of China Postal Savings Bank in Shangqiu. The interest rates for financial products targeting children range from 1.7% to 2.1%, balancing safety and profitability.

During the visits, the reporter also found that low entry barriers are another major attraction for parents to open children’s savings accounts. Without additional requirements, parents only need to bring household registration and guardian ID to open an account, which is protected by deposit insurance, ensuring principal and interest. “Recently, more than ten families come daily to open children’s savings accounts,” said a person in charge at the Business Department of ICBC Shangqiu Branch. These products have low capital thresholds, flexible terms, and manageable risks, helping ordinary people manage their “small money bags” and fostering a culture of thrift and frugality.

From “spending red envelopes immediately” to “saving for value appreciation,” the small change in red envelopes reflects the maturity of Shangqiu citizens’ financial awareness. The differentiated financial services offered by major banks not only meet the needs for safe and growing family funds but also empower children’s financial literacy education in a down-to-earth way. Turning Spring Festival red envelopes into growth and education funds, they deliver the warmth of inclusive finance to people’s hearts.