Opening Savings Account For A Child

Child savings accounts help prepare children for their bright future.

Opening savings account for a child.

A wells fargo way2save savings account requires a 25 minimum opening deposit and has no monthly service fees for primary account owners under 18 19 in alabama. Opening a savings account for your child isn t much different from getting a new account yourself. Deposit funds into a savings account as a gift for when a child reaches maturity. While it might be possible to open a checking account for your child it s better to open a savings account.

While opening a savings account online can take only a handful of minutes of your time you probably want to visit a bank with a branch with your child. With a standard joint account each account holder has 100 access to the funds so either the adult or the child can drain the account and rack up overdraft fees unless the bank restricts what the child can do. A recent study shows that children from low or moderate income families who have a savings account for college are three times more likely to go to college and four times more likely to graduate college even if the account holds less than 500. When a child turns 18 their kids savings account is automatically turned into a 360 savings account subject to the 360 savings terms and conditions.

You ll need the same information if you re opening an account at an online only or a brick. When opening a bank account for your child it s important to choose a strong financial institution and the right type of account. Joint ownership this option gives your child the ability to use the savings account while you monitor account activity. Learn more about savings accounts for kids.

Custodial utma savings account footnote 1. Joint account risks. You can always create a savings account in your name with the funds earmarked for a baby but opening the account in your newborn s name provides not only a savings vehicle but a great gift and financial literacy tool as your child grows. We re reopening but your health and well being remains our top priority.

Keep that in mind before you set your child loose with a large available balance. You want them to be comfortable in a. Even a small savings account for your child could make a powerful difference in their future. Visit a financial center to learn more and open an account.

Call your local banks and credit unions to ask what accounts they offer for children.