Best minor's savings account?

[leight]

My daughters recieved several checks made payable to them-and my bank changed their policy and no longer allow me to cash them against my account. I don't want to deposit them in their 529s so would like to start online or B&M savings accounts for them- any suggestions for low minimums/costs where I can get that started? I have no problem either using online or a reg bank.

Thanks!

 

[ziggystardust]

i'm a huge fan of ING. they have no minimums and you can set up sub folders within your savings. So say if your daughter wants to save for an ipod or something, she can designate a separate sub folder for it. I believe they also have a program that teaches kids how to save (not 100% on this)

I do cash my checks in a, as they call it, brick and morter bank, then transfer it over. I'm sure there is another, better way to do that, but I never did it.

 

[ziggystardust]

they do!

http://home.ingdirect.com/privacy/privacy.asp?s=ParentsTeachers

 

[3boymthr]

We recently had a big issue with this and found out that, at least in MA, you can start a trust account at just about any bank for your kids using their SSN. I was told that banks can't have the standard minimums for these accounts until the child reaches 18 and they can't charge fees until the child reaches 18. I was told however; that they can require $10 to open the account initially but the balance can drop below $10 and the account wil still remain available - as long as the balance isn't $0.

I'm not sure where you live, so double check this with your current bank, but it's probably similar. The beauty of the trust account is that your name is also on the account so that you can cash their checks for them.

 

[dex08]

I'm also a fan of ING Direct, however with children I am also a fan of brick and mortar banks. While DH and I do not have kids yet, we plan to teach our children at a young age that saving money and depositing into the bank is good and 'exciting' to do and the more you have saved the better off you are. Sometimes having a physical reference of depositing at a counter is an easier concept for a child to grasp.

My older sister did this with her kids and they opened accounts at the bank branch located in the supermarket where she shops. Whenever her kids had extra $ or gift $ they would make their own deposits at the bank --- and it was one stop for her since it was at the supermarket. Her oldest is going to graduate high school this year and his personal little savings acct has grown into a huge nest egg!

 

[OceanAnnie]

i'm a huge fan of ING. they have no minimums and you can set up sub folders within your savings. So say if your daughter wants to save for an ipod or something, she can designate a separate sub folder for it. I believe they also have a program that teaches kids how to save (not 100% on this)

I do cash my checks in a, as they call it, brick and morter bank, then transfer it over. I'm sure there is another, better way to do that, but I never did it.

I love ING too. We have both a brick and mortar and ING accounts. I opened an ING 12 month CD in '08 I believe for the kids and it was getting 4%, last year it dropped to 2.75%, and this year the renewal rate will be 2%. I think I'll shop around some before I renew this time, though I don't think the rates will be much better anywhere else. If not, I'll keep the CDs where they are.

Right now, I'm just going the conservative route. We might not be making very much money in interest, but we aren't losing money either. Eventually, I'd like to find something that will have a better yield.

 

[funnygarcia]

We found out recently that Wells Fargo has a teen account (13 -17) with lots of features for parents to control spending limits. Free account, ATM/debit card, online banking that parents can check on transactions and transfer funds from their own Wells Fargo account to the child with no fees. You can limit to x amt of transactions per day or a dollar limit per day for any purchases. The one bummer, $100 minimum to open the account. I think they did away with the child savings account, we had those and they started charging fees since there wasn't much in it.

 

[msmayor]

My daughters recieved several checks made payable to them-and my bank changed their policy and no longer allow me to cash them against my account. I don't want to deposit them in their 529s so would like to start online or B&M savings accounts for them- any suggestions for low minimums/costs where I can get that started? I have no problem either using online or a reg bank.

Thanks!

Personally, I'd question the bank manager as to why the checks cannot be cashed this way. Its done all the time...as the parent/guardian of the minor child, you legally endorse the check for them and the standard "holds" are applied to your account. I do it all the time for my kids at my bank without issue and its perfectly legal to do so, as long as you recognize that the funds hold is done against your bank balance according to their set schedule.