How to Save Money from Red Envelopes

This article is reprinted from Henan Daily

“Saved New Year’s money isn’t a large amount, but it represents a special handshake between banks and families. Whether it’s seen as short-term deposit gathering or the beginning of long-term companionship, it tests the bank’s patience and sense of proportion.”

□ Xu Bing

After the Spring Festival, children are busy counting red envelopes, and parents are also starting to consider: “Should we keep this money aside or deposit it in the bank?” Many families’ answer is simple—save it. At this moment, several banks have focused on “New Year’s money” and “children’s accounts,” launching dedicated passbooks, special fixed deposits, and joint parent-child accounts in turn. These often offer slightly higher interest rates than regular deposits, along with points and gifts, creating a lively scene.

Ultimately, the amount of New Year’s money isn’t large—usually a few thousand or ten thousand yuan—but it has a characteristic: it arrives in a lump sum, can be saved, and is often discussed and planned by the whole family. For banks, such money may not be substantial, but it is very stable. More importantly, once a child’s account is opened, there is an additional “link” between the bank and the family.

In the context of overall declining deposit interest rates, some banks have increased the interest on children’s fixed deposits by dozens of basis points. Although the extra earnings are not significant, they are enough to make parents feel that it is “specially prepared for children.” Banks are also aware: small amounts of funds are manageable, but establishing a relationship with a family opens opportunities for future education funds, insurance, wealth management, and even mortgages within their system. This is a long-term perspective.

In recent years, banks are no longer solely competing on interest rates. They have introduced joint parent-child management, spending reminders, and financial literacy classes. When children save money, parents can see the flow; when children spend, there are spending limits reminders. Banks are not just “money managers” but are trying to participate in family financial planning. To some extent, this reflects a shift in retail banking from competing for deposits to competing for relationships.

Of course, children’s accounts are subject to strict regulatory requirements. Account opening must be handled by guardians, and functions are limited; financial products with high risks are generally restricted. This is the bottom line. New Year’s money is meant to provide peace of mind. Overemphasizing returns or over-packaging concepts might instead make parents uneasy.

From another perspective, banks targeting New Year’s money indicates increasingly refined competition. Deposit business is difficult, and customers are becoming more rational, so banks must deepen their presence in family scenarios. Those who can accompany a child from their first passbook to their first paycheck are more likely to become long-term financial partners for that family.

Opening a red envelope takes minutes, but opening an account can last for many years. The amount of saved New Year’s money isn’t large, but it represents a special handshake between banks and families. Whether viewed as short-term deposit collection or the start of long-term companionship, it tests the bank’s patience and sense of proportion.