Savings Account

My daughter just turned 3 and her grandfather thought cash would be a good gift idea. He usually thinks cash is a good gift idea. Anyway, it got me thinking - it's about time to open her first savings account. None of my kids have accounts yet because the bank that my husband and I use charges a monthly fee if you don't have direct deposit. Given that my kids are all under the age of 5, none of them have jobs which means they don't have direct deposit. The fees would negate their life savings in less than a year, so they haven't had savings accounts yet.

I did some research on the computer and finally found a bank that doesn't charge fees for kids' savings accounts. They're horrid for adult savings accounts, but kids get off free. ;-) It got me thinking, what types of things should you look for in a kids' savings account? Here's what I came up with:

• FREE - There shouldn't be fees to save your money, ever. This is especially true if you're a kid. Adults can get around it with direct deposit, but what do kids do?
• FUN - The bank we're using gives a gift with every deposit and a small gift on the child's birthday. It makes saving FUN.
• LOCAL - It's important to use a local bank. Kids don't understand banking concepts, and giving someone money then driving an hour away is pretty scary for kids. The closer, the better.
• INTEREST - If you have multiple options, choose a bank with the best interest rates. Kids love rewards and getting money for saving money is the best one there is.

 Do your kids have savings accounts? What age did you start them?