Are you interested in starting a savings account for a child? Not sure how to open a savings account for a child? Well, this article on opening a children savings account will go over all the steps you need to take in order to get deposit savings accounts set up for your little one.
Teaching a young child the basics behind saving money can be a valuable and rewarding life lesson. It is important to teach kids these skills at a young age. Some people let their children deposit money into their piggy bank or a shoe box; however you can take the lesson even farther and show them how they can grow their extra money by investing that money into deposit savings accounts.
Understand Bank Options
The first step, you’ll want to take is to compare the different bank options. You’ll want to look at the different (APY) Annual Percentage Yield on each account, the minimum that is required in order to open a children savings account, what type of minimum must held in the account, and any other types of fees that are associated with having an account. If your kid is at an age where they can be included in this process they definitely should take part.
Pick a Director
The second step is to pick a director for the child’s account. Anyone who is under 18 years old will need to have a director listed on their account. This person has access to the child’s account and is able to make all of the decisions relating to the account till the minor turns 18 years old. At that point in time, the responsibility is transferred to the child.
Open the Account
The third step is to head out to whichever bank you’ve chosen with your child. You’ll want to physically take them to a bank so they can visualize and understand where their money will be kept. This also allows the child to sign all of the necessary forms related to the new account. The director must be there also to sign forms. Make sure to have any required information before getting to the bank. You’ll want to bring the child’s social security number and date of birth, along with telephone numbers and home address. Some banks may also additionally require this type of information from whoever is the director of the account.
Complete the First Deposit Slip
The next step is to fill out the first deposit slip. Make sure the child is involved in this part of the process and don’t forget you’ll need to have at least the minimum amount of money that is required in starting a savings account for a child.
Make the Initial Deposit
The fifth, and final step, is to deposit your money into your brand new savings account. Have your child be the one to give the slip and money to a bank teller. Once your child has gotten their receipt, their savings account has been officially opened and can begin earning interest.
Hopefully, this article on how to open a savings account for a child, has taught you how easy and rewarding it is to get your child started on the path to financial responsibility. It is a simple process but one that is incredibly rewarding.
While we covered opening a savings account at a local bank in this article there are a number of great online savings options such as the ING Orange 4 Kids account. ING provides an interactive online learning environment called Planet Orange. This is also a wonderful way for your child to learn about earning and saving money.
No comments yet.