Kids Savings Accounts: Preparing for the Future the Right Way

In this time of uncertainty, what little you have saved may need to be protected more than in times of greater certainty. And now is a perfect time to teach children the importance of saving so they can plan for their future. While we are by no means a financial advisor, and encourage you to seek the assistance of professionals in that regard, we recently investigated some of the local banks and credit unions in the South Sound area to learn where the kids might best sock away their chore money. The results of our inquiry were that the traditional banks like Bank of America, Chase, Wells Fargo, and the like, offered more conservative (i.e. lower) annual percentage rates for youth savings accounts (if any at all), and that credit unions had by far the best deals.

Check out our findings here:

• Spectrum Credit Union offered an unheard of 7% interest on youth savings, but is not located in the South Sound area.  However, if you fit any of the additional qualifications, it may be worth looking into their accounts for your children.

• BECU offers 4.07% Early Saver up to $500

• Citibank provides 2.75% interest.

• Verity Credit Union provides tiered reimbursement for lessons

• Ally Bank offers a competitive .8% and some excellent guidance on teaching money management to children.

• Navy Federal Credit Union provides .5% interest.

• Columbia Bank offers .3% interest

• Qualstar Credit Union provides .2% interest.

• Sound Community Bank offers .15% interest

• WSECU offers .11% without a cap on the amount in the account

• Red Canoe Credit Union has a very kid friendly financial education page, and offers .1% interest

• TAPCO Credit Union offers the Moola Kids Club which incentivizes savings with rewards similar to those earned in PTA fundraisers, as well as a lot of savings for local memberships, but the interest rate is .1%.

• WaFd Bank offers .1% interest

• Seattle Credit Union provides .05% for Student Savings and .1% for standard savings

• AlaskaUSA Federal Credit Union provides several pages of financial guidance for parents, and offers .05% interest

• Kitsap Credit Union offers .05% interest

• KeyBank offers Key4Kids, but the interest rate is not easily located.  Presuming it follows standard savings rates, .01% applies.

• Bank of America provides .01% interest

• Chase provides .01% interest

• Commencement Bank offers youth savings, but rate is not easy to discern, and is likely .01%

• Wells Fargo does not disclose a rate, but likely provides .01% interest

• Umpqua Bank no mention of interest earned on kids’ accounts.

• Homestreet Bank did not appear to have a youth account, and no indication of whether children were able to open an account with them.

• Bank of Hope did not appear to have a youth account, and no indication of whether children were able to open an account with them.

For more helpful information, check out this helpful guide from Bankrate. It contains recommendations for how much money you should aim to save at each age, as well as info on personal and emergency savings, retirement contributions, and automated investing.

This Blog is made available by Funke Law Firm for educational purposes only, not to provide specific legal advice. By using this blog you understand that there is no attorney client relationship between you and the author/Funke Law Firm. This Blog/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.