What To Look For With Savings Accounts For Children

Savings accounts for children, much like those for adults, have various options offered – instant access, fixed saving rates and much more. Good thing is that those can offer better interest rates. But is this the only thing to consider when you want to have one for your child?

Before making any decision on opening savings accounts for children with any bank, you should be well informed on conditions offered. Here are some things to think about before making your move:


  • Minimum amount of money needed for opening account – usually banks require you to make 25 dollars initial deposit (this can vary with different banks), with some you must have your own account there, while some will open a new account for your kid with no additional conditions presented.
  • Are there any monthly deposits required – some banks will require you to make deposits on monthly basis. Amount can be the same as initial deposit you have made when opening account or it may be lower (this depends on the bank). Some banks won’t require any other investments, so you can transfer money whenever you want.
  • Number of monthly withdrawals allowed – as far as depositing money goes, banks won’t give any limits, some banks may have limits on number of withdrawals that can be made and some may charge you when making more than one withdrawal per month.
  • Interest rates – this is important part of any savings. As it turns out to be, some banks will give you a higher interest rate for children account if you have your own account there. There is also option of not being able to make withdrawals during first year, but you will have higher interest rate. One more thing is important here – whether you’re making monthly payments or just one time payment, if you are depositing considerable amount of money at once, expect higher return.

Apart from what has already been said here, you should consider what type of savings you want when opening savings accounts for children. If you are making deposits to be used for high school or college there are accounts with no withdrawal option before your child is 16 or 18 years old. Those have the best interest rates but as you probably have guessed, money from those accounts can’t be withdrawn at will.

As you can see there are many options available to you when it comes to savings accounts for children. Before you make any decision be sure to check all details, because the more information you have the better decision you can make.

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