The Best Savings for Children
Teaching children the value of saving their money at a young age can help influence their financial decisions as adults. Introducing concepts of budgeting and saving can reinforce the value of a dollar to a child who simply asked and received what they wanted before. Parents who want to set up a savings account for their child have multiple options to choose from. By comparing different accounts, parents can find the account that best fits their child's needs.
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Advancial
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The Money Musketeers savings account from Advancial is available to all children under the age of 12. Requiring an initial $5 deposit, as of 2011, the Money Musketeer account pays dividends, and rewards children for making deposits. For every $5 a child deposits into an account, she receives a D'Art dollar that can be exchanged for prizes at the Money Musketeer Treasure Store. Additional rewards are mailed to children who make at least one deposit every quarter.
US Bank
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The Just US Kids Saving Program gives children between the ages of 5 and 12 the opportunity to open their own savings account with an initial $25 deposit, as of 2011. Just US Kids accounts receive such benefits as no monthly fees, free ATM transactions and FDIC insurance. Money saved in Just US Kids accounts will automatically roll over into the US Bank Teens Saving program when your child turns 13.
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Bank of America
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Parents with a Bank of America checking or savings account can open a Bank of America Custodial Savings for Youth account for children under 18 or 21, depending on state law. Custodial accounts require an initial $25 deposit, as of 2011; you can manage the accounts online. Interest on the account is reported on your child's Social Security number until he becomes an adult. Your child will not be able to touch the money in the account until reaching the required age as prescribed by state law.
Key Bank
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The Key4Kids savings account requires an initial $10 deposit, as of 2011, and is available to children under 18. Key4Kids accounts have no monthly fees and no minimum balance requirements. Parents can pay their child's allowance through account-to-account transfers and help teach financial responsibility and money management through online statements.
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