Multiple banks step in aggressively, targeting children's "New Year money"

The Paper News Reporter Hu Zhiteng

During the Spring Festival, the destination of children’s red envelopes has once again become a focal point for banks competing for business. Several commercial banks have recently launched financial products and service plans centered around keywords such as “red envelopes,” “children’s accounts,” and “growth vaults.” Through dedicated savings accounts, fixed deposits, and automatic wealth management configurations, they aim to transform the concentrated inflow of red envelope funds during the holiday into long-term customer assets.

Zhejiang Jiaxing Pinghu Rural Commercial Bank stated in its promotional copy that children’s red envelopes should not just sit in red packets “sleeping,” but instead, give children an exclusive children’s passbook, which not only saves wealth but also preserves unique memories of growth.

In terms of product forms, current bank strategies for red envelopes mainly focus on three categories: first, dedicated savings or card accounts opened in minors’ names, usually with low minimum deposit requirements, and features such as customized card faces and growth records; second, short- to medium-term fixed deposits or special savings certificates launched around red envelopes, with some banks offering phased interest rate increases or points and rights incentives within compliance frameworks; third, “trustee-style” fund management plans linked to parental accounts, integrating red envelope funds into family asset allocation, offering options like regular investment and education fund planning.

For example, Guangfa Bank’s “Parent-Child Finance” service offers the “Freedom Card,” which not only provides customizable card faces but also allows opening independent accounts for children, ensuring that red envelope money is used for designated purposes and avoiding the issue of “red envelope money being untracked.” China Merchants Bank’s “Jin Xiao Kui Housekeeper Service” includes functions such as “Baby Bank Card Management” and “Parent Education Special Accounts.”

Regarding deposit interest rates, the annualized interest rate for a one-year deposit in China Merchants Bank’s “Jin Xiao Kui Housekeeper Service” is 1.3%, and for a two-year deposit, it is 1.4%, both higher than standard deposit rates. Beijing Rural Commercial Bank’s Sunshine Baby Card dedicated savings product requires a minimum deposit of 1,000 yuan, with annual interest rates of 1.5% for one year, 1.6% for two years, and 1.75% for three years, while the corresponding fixed deposit rates are 1.15%, 1.2%, and 1.3%. Zhejiang Jiaxing Pinghu Rural Commercial Bank’s “Children’s Passbook” has a minimum deposit of 10,000 yuan, with interest rates of 1.5% for one year and 1.65% for three years.

Henan Rural Commercial Bank’s Taixian Branch launched the “Red Envelope Value-Added Plan” from the fourth to the fifteenth day of the Lunar New Year. Although the interest rate for related deposits was not specified, the bank stated that children under 16 who open fixed deposits of over 1,000 yuan have a 100% chance of winning, and those with deposits over 10,000 yuan for one year can participate in the “Deposit Rewards Points Exchange for Gifts” activity.

Shanxi Lian County Rural Commercial Bank conducts related activities through children’s social security cards. For children depositing 1,000, 3,000, 5,000, or more than 10,000 yuan in one-year fixed deposits, gifts such as blind boxes, keychains, plush toys, and building blocks are offered.

Many banks emphasize that these products are not solely aimed at short-term deposit growth but are focused on advancing customer lifecycle management. Through the savings behavior of red envelopes, banks can cultivate children’s savings habits and improve financial literacy. This is not only an important measure for banks to deepen family financial scenarios but also a way to fulfill social responsibilities and promote financial knowledge.

It is evident that while the amount of a single red envelope is often modest, it features characteristics such as concentrated inflow, long retention cycles, and strong family decision-making influence. For banks, this represents a low-cost liability source and an important entry point for acquiring young family customers. After establishing accounts for children, there is greater potential for cross-selling in areas such as education funds, insurance, and consumer finance.

Some banks have also launched “Children’s Growth Plans,” recommending that new parents “save for their child’s golden future” by setting up long-term gold accumulation and investment trusts.

In recent years, the market for financial services for minors has continued to expand. China Construction Bank issued a statement last May emphasizing, “Let children have their own bank cards, cherish every penny, and cultivate savings awareness.” As residents’ income levels increase and family financial management awareness strengthens, the scale of deposits and management needs for children are gradually rising. The red envelopes during the Spring Festival have become an important time window for concentrated marketing of related services.

However, it is also important to note that product design for red envelopes must balance compliance and long-term value. On one hand, financial products for minors are strictly regulated in account management, risk warnings, and fund usage permissions. On the other hand, overemphasizing returns or marketing features may undermine family trust in the bank’s professionalism. Therefore, how to find a reasonable boundary between “helping parents manage money,” “setting rules for children,” and the bank’s own business goals remains key to the sustainable development of related services.

The Paper News has observed that many banks clearly state that these dedicated bank cards/passbooks for children under 16 require guardians to provide valid ID and household registration or birth certificates for account opening.

Overall, banks’ focus on red envelopes is a natural choice amid intensified retail financial competition and also reflects an industry shift from “fighting for deposits” to “building relationships” and “securing long-term customers.” As family and intergenerational financial needs further emerge, there is still room for expansion in product forms and service models within this niche market.

Source: The Paper News