The Best Saving Accounts for Children
Opening a savings account for your child is a prime way to teach him about money. Children who at a young age become comfortable with handling their own money and how the bank system works will be typically better prepared to handle their finances as adults.
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Account Fees
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Your child is unlikely to accrue vast amounts of money at a young age, unless she has a lot of financial help from you and other relatives. Choosing an account with no or low monthly account fees will help her hold onto the money she is depositing, rather than exposing her to the disappointment of watching her saved money dwindle to pay extravagant fees.
Minimum Balance
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Steer clear of accounts that require a minimum monthly balance, if possible. This savings account is intended for your child, which probably means that it will not hold a great deal of money. Additionally, your child might wish to withdraw some funds for spending money as he grows older--if he has an account requiring a minimum balance, he could learn the hard way the lesson of going into the red.
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Interest Rate
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Consider the interest rate when choosing a children's savings account. Accounts with a high interest rate will accumulate more interest money per month than those that pay low interest, showing your child the power of passive income. Many banks offer junior savings accounts with this feature.
Banking Facilities
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If the purpose behind opening a saving account for child is merely to help her save money, the physical facility might not be very important. However, if your intention is to teach her the ins and outs of real-life, adult banking, you might want to consider opening her account with a bank that has good facilities, such as easy-to-access teller windows, an ATM, and an online banking option. Teaching your child how to use these facilities now will give her a distinct advantage when she grows older and needs to manage her money on her own.
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References
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