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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The Value of Children’s Savings Accounts

Posted on 13. Feb, 2011 by admin.

It is never too early to teach a child about financial responsibility. In fact, it is advised to teach young ones as much about finance as early as possible. This will ingrain good habits in them from an early age. Once a child has been instilled with the proper attitude towards finances, he/she will avoid the common financial pitfalls so many may make later in life.

This does raise questions regarding how you can go about teaching a child the facts about saving money. In the past, all parents could employ was the classic piggy bank. Today, there is a much better option and it comes in the form of an online savings account for kids. Such a savings account is identical to the account you would open at a bank. The prime difference would be the fact such savings accounts are designed for educational benefits on top of the basic savings services it delivers.

What type of education can it instill? Basically, adults can use this particular account as a means in which to present simple and effective lessons on how the value of money can increase of decrease depending what you do with it.

On the most basic of levels, childrens savings accounts can display the child the concept of compound interest. Kids do not realize that when you put your money away in an investment, it will grow. In particular, it grows due the accrual of interest and interest that compounds on itself. Such lessons can instill motivation in a child to invest his/her money. Once such motivation is instilled, the child will look towards a life of making money work through proper investment vehicles as opposed to seeing money do little more than end up being spent.

From this, kids will learn the true benefit of developing financial goals. For example, a child can set up goals through an allowance where the child opts to save 20% of the totality of his/her allowance by the end up the year. Whether or not the child can achieve the full 20%, the value of pursuing financial goals becomes possible.

This has the obvious benefit of instilling the true value of money and saving. Such information is only touched upon in grade schools…if it is covered at all. Through opening up kids savings accounts, the potential for the young one to learn the value of money is instilled and it is instilled at an early age. The value of this is incalculable. It can set a child on the proper path to a lifetime of financial freedom. The value of this certainly is obvious.

It is best to look for a reliable kids bank account with low fees, decent interest rates, and an interactive educational component. This way, the child is able to follow along with how the money grows when it is deposited. Simply putting money into an account that is little more than a lockbox does not boost educational value. You do not just want the child to save money. You want the child to learn the value of saving money. That is the most important component of all.

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