Teaching your kids how to save money and create a personal spending plan will serve them later in life. As an adult, you must take charge and be the one to find the best children savings accounts for your family’s needs. Laws require that those under 18 who have banking accounts have an adult guardian on file as the primary account member.
Considerations
Not all banks offers savings accounts designed for the youngest of savers. While you could technically open a second bank account in your name, this may not create a sense of responsibility in your child. A children’s savings account may have lower minimum balance requirements and likely no fees. Seeking these options is a great idea for both you and your child.
Finding Banks
While this article notes some choices in the national market, you might be better served finding a local account. You and your child can walk into a bank and make deposits; this bonding experience may not be possible if you use a national bank that doesn’t offer a branch in your town. Credit unions are especially helpful in this regard; some also offer special benefits to both youthful and adult members such as college scholarships. If you’re not eligible to join a credit union, you may wish to find out if a local or statewide bank offers similar services for you and your child.
The USAA Option
If you or your spouse is a member of the Armed Forces or other related organizations, you may be eligible to join USAA. USAA offers a bank to members; however, not all cities feature in-person branches.
USAA offers a Youth Savings Account that requires a minimum of $25 to open; no monthly fees are assessed to the account. Teenage members can also with parental permission establish their own account login. Parents can also initiate transfers to their child’s savings account; this can be a great way to dole out that allowance.
The Key Bank Option
Key Bank is another national bank; however, not every city has a branch. Unlike USAA, you don’t have to be member of a particular organization to join the bank. The Key4Kids Savings Account only requires $10 to open. Parents who have their own savings or checking account with Key Bank can transfer funds to their child’s savings account. The youth savings account does not incur any monthly maintenance fees.
The Advancial Option
You may wish to join Advancial and seek their Money Musketeers savings account for your little one. Points are issued and can be redeemed for prizes depending upon how much your child saves; this is a rare feature among children savings accounts. Your child can get started with only $5.
Advancial does not have branches in every city, so this is considered a national banking option that may require mailed-in deposits. Like the two previously mentioned savings account choices for children, the Money Musketeers account does not incur any monthly maintenance fees.
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