kids savings accounts

High Interest Savings Account For Kids

Posted on 18. May, 2011 by admin in Internet Savings Accounts, Kids Savings Accounts, Teaching Kids About Money

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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