New Year's money meets financial management, with children's exclusive savings products offering an interest rate of 1.75%

Author | Zhang Xinying                           Editor | Zhou Mengmei

Editor’s Note: Carpooling home for the holidays, group buying for New Year’s goods—this year, have you “pooled” for the Spring Festival? When Generation Z leads the Spring Festival, it doesn’t mean tradition disappears; instead, the flavor of the New Year shifts from solid to liquid, transforming from top-down inheritance to bottom-up creation. During the Year of the Horse (Bingwu), Shidai Finance launches the “Celebrate the Year” special, witnessing a reshaping of the festive atmosphere.

During the Spring Festival, children once again receive red envelopes filled with money. How to manage this money has become a focus for many parents.

Recently, Shidai Finance noticed that several financial institutions, including China Guangfa Bank, Suzhou Bank, and Beijing Rural Commercial Bank, have launched products and services such as children’s exclusive bank cards, parent-child account management, and juvenile savings certificates. Some institutions offer three-year deposit products with interest rates up to 1.75%. Besides choosing to deposit red envelope money in banks, many parents are also turning their attention to insurance, gold-related products, and some plan to accumulate their children’s red envelope money into fund accounts for “investment.”

“My child received over 30,000 yuan in red envelopes last year. On the fifth day of the Lunar New Year, I went to buy gold bars, and now it’s worth over 50,000 yuan,” said Ms. Wang (pseudonym) from Fujian recently to Shidai Finance. She explained that buying gold not only provides emotional value but also creates a tangible savings for her child. “My original intention was to save some ‘real estate’ for my daughter to hedge against future uncertainties. That goal hasn’t changed, so I don’t plan to sell easily and will continue to buy this year,” she said.

Ms. Lin (pseudonym) from Jiangsu also mentioned that her child’s red envelope money is appreciating in value. “Many friends around me like to set up college fund accounts for their kids. Last year, during the bull market, I took all my child’s red envelope money and opened an account. I lost some, but if it went up, I kept it for him. Now, my child says: ‘Whenever I get red envelope money, I ask to add more.’”

1. Multiple financial institutions focus on red envelope money management

With the evolution of new-generation parents’ educational concepts, red envelope money is no longer just “holiday pocket money.” Building a “growth fund” has become a new trend, and a “battle” among major financial institutions for this market is underway.

According to the official WeChat account of Beijing Rural Commercial Bank, the bank recently launched a dedicated savings product called “Sunshine Baby Card,” with a three-year term and a minimum deposit of 1,000 yuan, offering an annual interest rate of 1.75%, significantly higher than the bank’s regular fixed-term deposit rate (3-year term at 1.3%).

Additionally, Guangfa Bank has opened a “Free Card” for children to ensure that red envelope money is used exclusively for the child. The card’s advantages include “parent-child joint management,” allowing parents to manage the child’s account and purchase selected fixed deposits via their own app, gradually accumulating funds for education, travel, and other long-term needs. Parents can also view fund flows in real-time, set spending limits, and restrict spending scenarios. Each transaction by the child is simultaneously pushed to the parent.

Beyond banks, fund companies are also focusing on “red envelope” related parent-child investment products. Recently, Guangfa Fund promoted “parent-child accounts” on its official platform, introducing products such as “Fixed Income +” funds, index funds, and active equity funds for families with different risk preferences. The announcement states that Guangfa Fund’s parent-child accounts include features like a “change jar,” education funds, wish boxes, and financial literacy classes. Customers can also receive gifts such as a cash deposit piggy bank, Monopoly board game, and Pop Mart blind boxes as Year of the Horse gifts.

It’s noteworthy that many institutions are now combining financial products with children’s financial literacy education. This not only helps increase customer loyalty but also lays the foundation for future high-value services such as youth financial management, study abroad financing, and insurance planning.

According to Suzhou Bank’s recent announcement, “Suxin Future” is the bank’s youth financial service brand. Customers who open a “Suxin Future Savings Certificate” can enjoy benefits such as access to prestigious schools and teachers, global study tours, opportunities to serve as matchday ball boys in China League One, Disney VIP channels, and pediatric green channels.

Major insurance companies are also focusing on “long-term arrangements” for children’s red envelope money. According to a recent case published by China Merchants Renhe Life Insurance, a client purchased the China Merchants Renhe Annual Premium Annuity Insurance (dividend type) for their 10-year-old son. Starting at age 15, the child receives an annual survival benefit until age 99; upon contract maturity, a maturity benefit is paid as a summary of the life stage.

2. How to achieve steady appreciation?

Faced with a variety of products offered by financial institutions, how should parents choose? Shidai Finance found that “steady appreciation” is the core keyword for most parents managing red envelope money, but there is a trend toward diversified tool selection.

In fact, fixed deposits remain the “mainstay” of red envelope money management. Several interviewed parents told Shidai Finance that opening an independent bank account for the child and depositing red envelope money into fixed deposits is both safe and allows children to see their money grow, serving as an introductory lesson in savings habits.

Many parents are also torn between saving money and investing in gold. Some say, “Definitely save, prioritizing capital preservation,” while others believe, “Bank interest rates are low now, and when the money matures, it will be spent. Gold can just be kept as is.”

Industry insiders believe that the recent surge in children’s financial products during the Spring Festival is the result of a confluence of factors: low interest rates, bank retail transformation, and family financial literacy awakening. Fu Yifu, a special researcher at Su Commercial Bank, told Shidai Finance, “The concentrated scale of red envelope money during the Spring Festival prompts banks to launch children’s exclusive deposits and special accounts with slightly higher interest rates to attract small, long-term funds, while also binding family customers and capturing future clients. Insurance, funds, and gold also enter the scene, promoting a shift from simple savings to diversified asset allocation for children’s finance.”

Overall, compared to pursuing high returns, most parents prioritize low risk. “This year, I just want my child’s red envelope money to be more stable. I don’t want to risk his money,” said Ms. Liu, a young mother in her 90s, which is quite representative among parents.

She explained that last year, she deposited all her child’s red envelopes into a separate bank card, with half in fixed deposits and half invested in funds. Regarding product choices, she favors dividend assets. “My child’s education fund is long-term investment capital. I’ve seen many people buy gold with their children’s red envelope money, but my goal is cash flow investment to give my child more options in life. So I bought dividend ETFs,” she said.

Yang Zhengwang, a fund manager at E Fund, also told Shidai Finance that in the context of continued low interest rates, by 2026, dividend assets are expected to see a return of capital inflows. As many traditional fixed deposits and wealth management funds mature and are reallocated, high-dividend, low-volatility assets are likely to become important vehicles for absorbing this incremental capital.

Insurance products are also gaining attention from many parents. An insurance client manager told Shidai Finance that during the Spring Festival, inquiries about education funds and annuity insurance increased significantly. “After all, red envelope money is held in trust for the children, and it will be returned when they grow up. Many parents choose long-term financial planning,” they said.

However, industry insiders emphasize that parents should avoid misconceptions such as “children’s products are safer” or “longer lock-in periods mean higher returns” when managing red envelope money. “For example, annuity insurance should only be used as long-term forced savings, not for short-term funds; funds should prioritize low-risk R1/R2 products, small and diversified allocations; safety and liquidity should come first, and high returns should not be blindly pursued; always choose licensed institutions and正规 contracts, clarify fees, terms, and redemption rules, and keep risk controllable,” Fu Yifu advised.