How to Open A Savings Account For Your Child
Are you considering opening a savings account for your child? If so, you are certainly thinking in the right direction because it is never too early to begin saving for college and other expenses which will appear from time to time. A savings account for your child will give you just the opportunity you need to get into the habit of saving with the interest of the child in mind.
You can open a savings account for your child in your name knowing full well that the money set aside is actually for the child. Moreover opening a savings account for your child will be an excellent gift because he or she could have a tidy sum of money in the account when it is most needed. As you are already in the planning stages of opening savings account for your child the information provided below will guide you appropriately in achieving your objective.
Open a savings account for your child as a cosigner
Children below the age of 18 are not legally eligible to sign documents as you are when you decide to open an account. However, you can still open a savings account for your child with both your names on the account. When your child becomes 18 years of age you can go to the bank and delete your name from the account. As your child is still a minor you would have the sole responsibility of controlling the account. You will be eligible to make deposits and withdrawals or close the account if needed.
A savings account for a child will attract fees
Savings accounts always attract fees but there are options to get around this fact. Have a discussion with your bankers to understand if they offer any accounts that can be connected to your checking account because it will help you to avoid paying unnecessary fees. You can also find a number of options by conducting an online search because online banks may offer savings accounts without any fees being charged and this option may also be available with the local credit union.
You should be prepared to conduct some research about these types of accounts because some banks are willing to waive charges if you are prepared to leave a minimum balance in the account. Just ensure you read the fine print on the account so that you get an understanding of any fees that may be charged and can have a finer sense of control over the account.
Open a savings account for your child close to your home
The bank chosen to open a savings account for your child should be located close to your home. As an adult, you will find it beneficial to use online banking but when your child begins to grow you will want to take him or her for a visit to the bank where the money is deposited. If the bank is located close to your home your growing child will have opportunities to make deposits regularly and appreciate the value of saving. Your baby will not be concerned right now but your growing child will love to visit the bank and watch how much money he or she has saved.
The interest rates
The interest rates on savings account can at best be called dismal. Most banks are not generous in offering interest rates and perhaps you can find the best rates of interest by looking at the credit union in your locality. Have a discussion with your local bank about any programs they are offering which may provide you interest rates. If your intention is to ensure that your child earns more interest when growing you should consider moving the funds invested into a certificate of deposit or investment account because you can get attractive interest rates and make it better for your child to receive a good return on investment.
Teaching your child the value of saving money should be a lesson which should be imparted at an early age of life. You don’t have to set aside 10 or 15% of your income as you do towards your retirement. The habit need not be expensive or tedious because you always have the option of setting aside small sums of money in the account because it is guaranteed to be a source of pride for your child who is growing up.
More in Bank Stories
Scarlett Johansson’s MASSIVE Marvel Paycheck Shows Closing Pay Gap in Hollywood
For the past decade, the Marvel Cinematic Universe has kept us thoroughly entertained, and there are no signs of them slowing...November 25, 2020
The Maldives has a Program that’ll Reward You for Traveling There–Here’s How it Works
While there are many destinations that have opened up their doors once again for leisure travelers, it seems like the number...November 25, 2020
Why Single Ladies Have Less Debt Than Single Men
When is being indebted to people ever a good thing? Don’t answer that, it is a trick question. The answer is...November 17, 2020
5 Habits of Self-Made Millionaires That Allow Them to Retire in Their 20’s
Many of us dream of retiring a millionaire or at least earlier than normal. There’s a growing segment of people that...November 10, 2020
You Can Stay at These Marilyn Monroe or Howard Hughes-Inspired Bungalows for $8500/Night
If there is one hotel which the A-list celebrities of Hollywood just love to visit, it is the Beverly Hills Hotel....November 4, 2020
Count on the Duggars for an Amazing Renovation as They List a Mansion for $1.8 Million
Anyone who loves reality TV show knows who the Duggar family is. Jim Bob and his wife Michelle Duggar became household...November 4, 2020
Five Questions You Need to Ask Yourself Before Choosing a Business Bank Account
Having a business bank account is something that is required by the Internal Revenue Service (IRS) for all incorporated businesses. What’s...October 27, 2020
Biggest Financial Mistakes People Make that Lead to Debt, And How You Can Avoid Them
To come off as a responsible adult, you have to demonstrate that you can convincingly handle your finances. What’s that thing...October 27, 2020
This is How Johnny Depp Spends $2 Million a Month On His Lavish Lifestyle
According to the former business manager of Johnny Depp, the actor spends extravagantly to support his lavish lifestyle, requiring a monthly...October 20, 2020