Keep Your Child's Money Safe-And Growing-With A Savings Account
Posted on 05/03/2022 at 08:00 AM by First State Bank
Once your child’s savings outgrow a piggy bank, the next thing you’re going to want to do is find a way to keep that money safe, accessible – and growing.
First State Bank offers a variety of savings account options including two savings options for children age 0-12 years. Our Kids Club Savings Account and our Dollars Savings Account both offer our young savers rewards for saving money and exclusive promotions and activities. Click here to learn more.
Once your child has outgrown our Kids Club or Dollars Savings Account options (age 13 and up) they are able to continue saving with a few options including regular savings accounts, money market deposit accounts, and certificates of deposit - or CDs. Each of these accounts offers you a way to save money, and to earn interest to help that money grow over time - and, at your insured institution, that money and any accrued interest are protected for up to $250,000.
A regular savings account lets you safely store money and earn interest at a fixed rate, but you can only make a limited number of transfers or withdrawals each month without being charged a fee.
Money market deposit accounts are somewhat like a basic savings account, and while they may require a higher balance, they also tend to pay higher interest rates than a regular savings account.
CDs tend to earn the most interest. However, to get those higher rates, you commit to leave that money untouched over a period of time, usually a few months to several years. Any early withdrawal could result in financial penalty.
Before opening an account for your child’s money, be sure to ask about any minimum balances or withdrawal limits that could result in fees.
These interest-earning accounts are a great way for kids to learn about saving money and watching it grow, and we’ll be glad to help you get one opened.