Opening a children’s savings account will help your child learn more about money management, future saving, and other aspects of personal finance from a young age.
Many banks and credit unions provide young savers with special accounts that can be opened under the name of the child.
It is important to do your homework before you open a kid’s savings account. You should find prices and determine the main goals for getting the child’s savings account. This will help you narrow down what accounts and banks to choose from.
What is a Children’s Savings Account?
Children’s savings accounts are opened on behalf of a child in most traditional banks and credit unions. They have to be opened together because the name of both the child and parent or guardian is on the account.
Many may not require a minimum age, but they will have to pass their funds to youth, students, and ultimately adult savings accounts.
Is a Kid’s Savings Account Right for You?
Deciding on a youth savings plan depends on your priorities. These accounts can be a perfect way to teach your child to save and gain a sense of control of money they save in the early stages.
There are, however, simpler ways to obtain the highest return on your savings. Tax-deferred accounts such as a 529 plan are a smart option for investments for college funds.
Investments like shares, brokerage accounting, or CDs are great if you intend to support your children to save for the long term.
Even if your savings plan is short-term only, you would usually earn better savings rates than any child’s savings plan on a daily high-rate savings account.
Whatever you choose, starting early will instill important lessons in ownership and responsibility to your child’s relationship with finance.
RMLEFCU’s Kid’s Savings Account
When you open a savings account for your child with a $25 deposit, we can help get it off the ground with a $25 1-year piggybank CD at an exclusive .75% APY!
An RMLEFCU account is something you can watch grow together for a lifetime, and it includes a piggybank for your young saver!
This offer only applies to new accounts for young savers 18 years old and younger and is only valid through February 28th, 2021. Let’s get saving today!
Email us at firstname.lastname@example.org or call us at 303-458-6660 to get your young saver’s account set up.