Binance Unveils New Crypto Savings Account for Kids

Binance has unveiled Binance Junior, a new savings account that allows parents to invest in crypto on behalf of their children.

Binance Junior is available to children between the ages of six and 17 and functions as a sub-account of a parent’s main account on the exchange, with parents having full control over the sub-account at all times.

Parents can transfer funds to Binance Junior accounts through their own Binance accounts, or by sending on-chain transfers from third-party wallets and platforms.

Funds deposited into a Binance Junior account may earn different interest rates in certain jurisdictions through Binance’s Junior Flexible Simple Earn product.

Binance has not made the geographical availability completely clear The official webpage of Binance Junior providing a list of countries based on age restrictions, but also specifying that the list “does not guarantee that the product is or will be available to users in any of the regions mentioned.”

For example, Austria, Spain, Italy, Lithuania, Cyprus, Bulgaria and South Korea are listed as countries that would limit the new account to those over 14, while Brazil, Germany, Ireland, Poland, Slovakia, Hungary and Croatia are among those that would limit it to those over 16.

Users of Binance Junior accounts cannot trade crypto or make on-chain withdrawals with Binance, with their activity limited to sending funds to their linked parental account or other Binance Junior accounts, but only if they are at least 13 years old (or older in certain areas).

Transfers between Binance Junior accounts have a daily limit of $400, while parents can link up to five Junior accounts to their profile.

Speak with DeclutterBinance said it conceived Binance Junior as a “family-oriented app” that parents can use to introduce cryptocurrencies to their children, and to the concept of saving in general.

“Studies show that early exposure to formal savings accounts promotes positive financial habits and literacy in the long term,” a representative from the exchange said. “Unlike one-time transfers or gifts, Binance Junior provides ongoing parental control and controlled early exposure to savings and digital assets, allowing parents to invest in their children’s financial future and foster positive savings habits.”

Binance also explains that the app is specifically intended to prepare young people for a financial world in which cryptocurrencies will become increasingly integrated.

The representative added: “Binance Junior aims to provide young users with a strong foundation in personal finance and digital asset education, promoting long-term financial literacy and readiness for the evolving economic landscape.”

Industry commentators suggest the new savings account is an attempt to tap into a new market and acquire future customers while they are even more impressionable.

“This seems like a case of ‘Get ’em while they’re young’ – a principle that any company with a long-term plan understands,” said cryptocurrency analyst and author Glen Goodman, speaking to Declutter.

Goodman notes that lifelong habits are often formed in childhood, acknowledging that he has been saving, investing and (later) trading since his grandfather helped him open his first savings account when he was seven.

And while critics might suggest that encouraging children to start saving potentially volatile digital assets isn’t entirely responsible, Goodman welcomes the fact that Binance has “severely restricted” junior accounts.

So no trading, no buying or selling,” he said. “They only hold the cryptos that their parents bought.”

Goodman also welcomes Binance’s companion eBook for kids: “ABC of Crypto”, while also suggesting that the glossary avoids some terms that may have given young people an idea of ​​how risky crypto can be.

He said: “I just feel like ‘P is for pump & dump’ and ‘R is for Rekt’ is missing.”