What Is the Best Savings Account for Kids?
Nothing beats hands-on experience for teaching children important lessons about the value of a dollar. But as their financial education continues, you may be wondering, what is the best savings account for kids? How do you choose the right youth savings accounts, and what should you be looking for?
Don’t worry. For starters, just opening a savings account for your child will put them lightyears ahead, starting them off on the right foot to financial success. And the right youth savings account is one they will use — learning how to save, plan ahead, and be patient.
With those important points in mind, here are a few tips for choosing the right kids savings account for your son or daughter.
The basics of kids savings accounts
Youth savings accounts are a little different from your regular, personal savings accounts. They require an adult to help open the account, and the account itself is designed to be used by customers under the age of 18.
No monthly service charge
It’s important that your kids’ savings account not come with any monthly fees. At Consumers National Bank, we never charge a monthly service charge for child savings accounts, and there is no minimum balance requirement, either. This helps kids get started with saving without worrying about having “enough” — they can focus instead on the pride they get from stashing away their allowance or birthday money and watching that balance grow.
A good kids account will pay interest on their balance. Youth savings accounts at Consumers earns interest just like Mom and Dad’s account — helping grow their savings.
An important part of introducing children to banking and saving is the convenience of accessing the account. If the bank is far away or the account is difficult to deposit to, they could get discouraged, and that makes it hard to make saving a priority.
With Consumers’ nearly two dozen locations, it is easy to tag along with a parent or grandparent and find a bank branch nearby. And if kids just want to check up on their balance, Consumers offers free online and mobile banking — so (with an adult’s help), they can check their account no matter where they are.
While you’re looking out for your kids’ financial future, make sure they’re protected with insurance from the Federal Deposit Insurance Corporation (FDIC). This guarantees the funds in their account up to a max of $250,000, no matter what. All you need to do is bank with an FDIC member bank like Consumers to be sure your deposits are protected.
Opening a kids savings account
It should be simple to open a youth savings account, and at Consumers, it is. You can even begin your application online and a bank representative will help you complete the process. Or, just pop by a Consumers branch to get started.
To open a savings account for your child, you’ll need to provide name, Social Security number, date of birth and address information (to comply with federal law).
While you’re setting up the account, sign up for easy to access e-statements, too. Also, consider automatic transfers to make building the account easy. There is a $10 minimum to open the account, but no minimum balance requirements after that.
Ready to open a youth savings account for your young one? Start the process today, online or in person, and help your child begin their journey to a stable financial future.