kids savings accounts

High Interest Savings Account For Kids

Posted on 18. May, 2011 by admin.

Getting your child off on the right foot financially is always a good thing, you can do this by starting them out with a high interest savings account for kids. Getting kids financially aware early is rewarding, and finding a great account is actually easier than you may think: banks compete quite fiercely for new savings accounts. Being able to start a child out early, the chances are greater of having someone who will then become a lifelong customer.

When you begin, there are a few things you are going to want to look for in your child’s bank account. First of all, a no fees account is best. It stands to reason that you’ll begin with a small amount, and you don’t want charges on the account for not meeting a minimum balance. Next, pay attention to those rates and look for the highest rate you can. Utilizing a generous interest rate is smart, as it will help your child’s savings grow quite a bit. Also bear in mind any access limitations the accounts may have. When you are looking for a high interest savings account for kids, you need to be sure it’s free to withdraw money.

While you’re teaching kids about savings, you are also helping them build confidence. Anyone who has ever taken a child to the bank, allowed them to walk up and deposit the funds themselves can tell you, kids love that. It makes them feel that they are making their own decisions as well as teaching them important lessons about finances. It is often best to allow your child to set up the account with you, and as you do this, make sure that they read over all of the paperwork as well. Teach them to pay attention to things like the interest rates, the fees, the other perks that may be offered with each account. Really draw them into the decision making process, and empower them to make their own decisions.

A high interest savings account for kids are the best way to go. Teaching your child to save is a wonderful thing, but that doesn’t mean skimping on the savings return. Most bank accounts for children do not have fees, so this makes it easier. However, if you want to get your child a high interest account, you can always check the age restrictions. If a standard account doesn’t have any fees, it’s a great idea to go ahead and set up a standard high interest account instead of a child savings account.

Enabling your child to learn savings is a great first step to teaching them budgeting skills, as well. Once that initial deposit is made, you may want to have them sit down and draft their own budget, including savings. They will then begin to build a habit that will serve them well throughout their lives and develop a very strong financial literacy. When you begin with a high interest savings account for your child, you can explain the process to them. This also helps to make them feel a stronger part of the overall decision making process, and this will then have them feeling great about what they are doing.

Some High Interest Savings Accounts For Kids:

American Riviera Bank- Current APY is 9%
1033 Anacapa Street
Santa Barbara, CA 93101
805.965.5942
www.americanrivierabank.com

Chevron Federal Credit Union- Current APY is 7%
P.O. Box 2069
Oakland, CA 94604
(800)232-8101
www.chevronfcu.org
*must meet requirements

ING DIRECT- Current APY is 1%
1 South Orange Street
Wilmington, DE 19801
1-800-ING-DIRECT

For additional Childrens Savings Accounts, visit DepositAccounts.com

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Signing Up For The Best Children’s Bank Account

Posted on 14. May, 2011 by admin.

More and more people are starting to see the benefits of helping their children open bank accounts. With a children’s bank account, your child can learn the importance of saving money and how to manage a bank statement or book when it comes to withdrawals. They will really get to see firsthand how hard it is to save money and how easily it can be spent. Even if you would just rather focus on the saving part, you still need to make sure that you are signing up not just for the right account, but through the right bank as well.

To get started, you are going to need to call around to some of your local banks and credit unions. You will find that not all banking institutions will have account options for minors. The reason for this is because the average child is not going to deposit large amounts of money like an adult, so there is less money to be made by the bank. The banks that are more worried about their bottom line than the needs of their customers will be the banks that do not offer kids bank accounts.

You will still want to make sure that you are looking not just for any bank that will open an account for your child, but a bank that is going to give decent interest. Even though you are not going to expect that a lot of money is going to be earned through the interest, it is still a great tool in order for your children to see just how banks work and the benefits of actually saving their money versus spending it as soon as it gets into their hands.

If you want to make sure that you are making this as fun of an experience as possible, you might want to look for local banks or credit unions that give a little something extra to the kids. For example, they might add a dollar or two to the bank account on your child’s birthday. This makes it all that much more fun to sit back and watch the money grow. Get your child involved in chores around the house or at the neighbors in order to earn money that can be deposited into the bank account. This is going to give your child a real sense of financial responsibility.

As you can see, there are a few things for you to think over. The sooner you get your children involved in every aspect of saving, the sooner they will be well equipped for the real world. You will have done your part to help your child grow into a well rounded financially responsible adult. With the help of the children’s bank account, this will be easily done.

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