Routes to finance
Save for the K >
It’s never too early to save for college and other expenses that will appear about your child’s life. Getting into the habit when your child is still a baby is an excellent idea. You can open a savings account for a baby on your behalf, knowing that the funds are actually intended for your child. However, opening the account on your child’s behalf is also a great gift for your growing child. Here’s what you need to know about opening a savings account for a newborn.
Savings account co-signer
Children under the age of 18 are not allowed to sign documents as signed when opening a savings account. Fortunately, you can still open a savings account by having both names in the account. When the child gets old, you can go to the bank and permanently remove your name. However, while your child is a minor, you will have control over the account. You have the option of making withdrawals or deposits and closing them if necessary.
You should present a birth certificate for your baby when opening the savings account. Most banks have no minimum age if a parent is also listed on the account. However, you want legal confirmation for the child. You must present your own driver’s license. You should also expect some form of first deposit to open the account.
You will also need both social security numbers to open a savings account.
Savings accounts are often chargeable. There are ways to get around this unfortunate fact. First, speak to the bank you are currently using. You can offer accounts that can be linked to your checking account so that you can avoid the fees.
Your credit union or an online bank can offer savings accounts without any fees. Other banks provide accounts that waive the fees, provided that a certain number of deposits are made each month. Another option is to choose an account that does not offer service fees when there is a minimum balance. You can then open the account by giving your baby this minimum balance as a gift. Be sure to read the fine print on each account so you know why fees are being charged and can monitor activity accordingly.
The bank should be suitable for your home. Banking online is great for adults, but as your child grows, you want them to visit the bank where their money is. If you choose a bank near where you live, your growing child will make regular deposits and learn to appreciate the value of saving. Your baby may no longer be interested, but your older child will love visiting the bank and seeing how much money she saved.
The interest on many savings accounts is miserable. You will probably find the best rates by looking at your local credit union. Talk to your local bank about programs that could offer you cheaper interest rates. You can also move the funds to a more attractive deposit certificate or investment account as they grow, so your child gets more interest on their savings.
It is never too early to open a savings account and teach your child to save money. It doesn’t have to be expensive or lengthy, and it’s guaranteed to be a source of pride for your growing child.
Savings account for children – save long-term and safely More and more parents and also grandparents are starting to do so, for their children or…
passbook Savings account for children – what should be considered? In almost all families it exists in some way: the savings book or savings account for…
Routes to finance Torsten Tiedt: How to choose the right share – Investor Club Special (January 2020). As a parent, choosing the right college savings…
Open a savings account for children? Many people still know the classic one created by parents passbook . Stored at home, the parents took the book and…