When New Year's money meets financial management, it focuses on financial literacy enlightenment and long-term appreciation! There are children's exclusive savings products with an interest rate of 1.75%.

This article is sourced from Times Finance. Author: Zhang Xinying

Editor’s Note: Carpooling home, group buying New Year’s goods—this year, have you “pooled” your way home for the holiday? 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, Times 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, Times 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 children’s 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. 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. “Most of my friends like to set up college funds for their kids. Last year, during the bull market, I took all my child’s red envelope money and opened an account. If I lost money, I would cover it; if it gained, I kept it all for him. Now, my child says: ‘Whenever I get red envelope money, I ask to add more.’”

Image source: TuChong Creative

Multiple Financial Institutions Focus on Red Envelope Money Management

With the new generation of parents’ evolving educational views, red envelope money is no longer just simple holiday pocket money. Building a “growth fund” has become a new trend, and a “battle” among financial institutions for this small but promising market has begun.

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

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

Beyond banks, fund companies are also actively developing parent-child financial products centered around red envelope money. Recently, Guangfa Fund promoted a “Parent-Child Account” on its official platform, introducing various products such as “Fixed Income Plus” funds, index funds, and active equity funds suitable for families with different risk preferences. The announcement states that the Guangfa Fund parent-child account includes features like a small change jar, education fund, wish box, and financial literacy classes. Customers can also receive gifts such as a cash-saving piggy bank, Monopoly board game, and Pop Mart blind boxes as Year of the Horse gifts.

It is 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 a foundation for future high-value services such as youth financial management, study abroad financing, and insurance planning.

According to Suzhou Bank’s recent announcement, “Suzhou Xin Future” is the bank’s youth financial service brand. Customers who open a “Suzhou Xin Future Savings Certificate” can enjoy benefits such as access to top 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 Zha Heng Annual 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 lump sum is paid as a life-stage summary.

How to achieve steady growth?

Faced with a variety of products offered by financial institutions, how should parents choose? Times 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-term deposits remain the “basic” choice for managing red envelope money. Several interviewed parents told Times Finance that opening an independent bank account for their children and depositing red envelope money into fixed deposits is both safe and allows children to see their money grow, serving as an early lesson in savings habits.

Many parents also struggle between saving money and investing in gold. Some say, “It’s definitely better to save money and prioritize capital preservation,” while others believe, “Bank interest rates are low now, and when the money matures, it will be spent anyway. Gold can just be kept as is.”

Industry insiders believe that this year’s children’s financial management boom during the Spring Festival is the result of three factors resonating: low interest rates, bank retail transformation, and family financial literacy awakening. Fu Yifu, a special researcher at Su Commercial Bank, told Times Finance, “The concentrated scale of red envelope money during the Spring Festival prompted 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 entered 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 safer. 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, half in fixed deposits and half in funds. Regarding product choices, she favors dividend assets. “My child’s education fund is a long-term investment. 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. That’s why I bought dividend ETFs,” she said.

Yang Zhengwang, a fund manager at E Fund, also told Times Finance that in the context of continued low interest rates, by 2026, dividend assets are expected to see a return of capital. 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 among parents. An insurance client manager told Times 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 when they grow up, it will be returned. So many parents choose long-term financial planning,” they said.

However, industry experts emphasize that parents should avoid misconceptions such as “children’s exclusive = safer” or “longer lock-in period = 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 with small, diversified investments; 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 risks controllable,” Fu Yifu advised.