Choosing Savings Accounts for Children

Children should be taught how to save money in order to instill sense of responsibility and budgeting instincts early on. Saving for your children would be properly implemented if you try to open an account under their name. At present, there are a lot of banks that offer high interest rates for your children’s savings accounts. But you don’t have to be deceived by these offers at once. You need to know certain factors to consider when deciding for an account for your children.

As parents, we always want to give the best for our children. It is not everyday that we can show them how much we love them and how much we care for them. Ensuring their future through savings accounts that incorporate high interest rates, useful banking facilities and low additional fess is indeed a good choice for them. Good money habits should be honed at a very young age so that your children will not grow in financial disaster.

There is nobody else responsible for redirecting children’s future but the parents. Junior bank accounts can be opened and act as parental ally in teaching children cash and credit management schemes. Learning the value of money wouldn’t be possible unless children will be a given a hands-on experience in manipulating their own little money.

There is a big difference between interest rates offered to adult accounts and interest rates which are for children. The latter boasts of higher denominations because rates are increased. However, it is a fact that not all banks are giving out the same high interest rates. These vary from one financial entity to another. This is where shopping for savings accounts come. In The shopping experience would open doors to better banking opportunities. You will be able to compare bank utilities and services and choose the ones that suit your child’s needs.

You might want to consider the fact that high interest rates are entailed in some conditional provisions. For instance, one bank could offer 10% per annual bonus rate for your child’s account given that the deposits made will range from $25 to $250 during the year. This is such a good return for a little effort which your child could use as inspiration in saving for more.

You should also need to look for the accounts that offer no or low account fees. Usually, children’s savings accounts have low accounts fees or always free of charge. This is not a problem anymore but there are some situations wherein fees are applied depending on the transaction made.

On the other hand, withdrawal policies are also very important for you to check on. You might want to opt for accounts that do not allow your child to withdraw anytime so that you can monitor the cash outs and purchases. Or you can also look for banks that require the consent of the parents during withdrawals. This is to make sure that children are guided and at the same time, guarded against unnecessary expenditures and financial transactions which might go beyond their ages.

Moreover, if parents would want their children to understand the intricacies of real-life banking, they could opt for banks with useful facilities like phone, ATMs and even online banking facility. The advent of the World Wide Web can be very helpful to children because they can have an authentic view of their savings growth. They could watch their money grow and monitor their transactions within the comforts of your homes.

Looking for savings account that could help you boost your child’s sense of responsibility over money management is now made easy online. Shop with your child and ask him or her about his or her personal preference when it comes to savings accounts for kids.