Children Savings Account

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Planning On A Kids Savings Account

If you’re like the majority of parents today (and also throughout human history, for example), then you worry about your son or daughter’s future. One of the most important features to this future is whether or not your child will have a healthy financial base, along with a good knowledge of pecuniary matters. The beginning to such good habits and knowledge gets children savings account.

A children savings account is great for manifold causes, the three most prominent being that they can aid your child learn about personal finances, it will be a \”nest egg\” associated with sorts ensuring your kid’s educational future, and also as an emergency back-up in times of financial desperation.

Youngsters savings account is a wonderful studying tool for children. By setting up an account, or much better, helping your child to set up an account, your child will be taught the bare minimum basics about beauracracy, by filling in the forms necessary to open an account and a fundamental understanding of interest levels, amongst other things. Many youngsters will find this exciting and learn to appreciate making a weekly deposit just to see their savings grow.

In terms of investing in a child’s potential, a children savings account is almost unbeatable. This is especially true if the account is opened at about the time of a child’s start or toddler many years. If regular deposits are manufactured, even of less than $10 per week, the amount of savings over time will become very impressive. By the time a young child turns eighteen, in fact, the savings needs to have accrued enough to supply a decent level of income for the child’s college education.

Last but not least, there is the consideration of the particular financial fluctuations any particular one may experience whilst being a parent. A steady rise of inflation seems to continually be around. As well, it has an ever-increasing amount of products and services any particular one needs just to survive in the modern globe. At times parents could find themselves pinched between two paychecks. Because of this, one solution is to borrow from their child’s individual savings. Of course, it is a habit that must be unusual and with the proviso that the money taken out must be promptly returned to the account when possible.

When all of this is taken into account, a savings put aside for a child makes all the sense in the world.

Comments: 51

  1. Janelle February 28, 2013 at 3:55 am Reply

    My husband and I are 22 years old. We really understand the importance of managing your money well. So far we have accomplished the task of paying off all our debt and both have fantastic credit scores. We understand that the best “next step” for us is to start a high interest savings account or something of the sort. This is where I’m lacking in knowledge. I’m looking for account type suggestions, websites I can look at, etc.

  2. Cordell March 1, 2013 at 4:32 pm Reply

    I recently went to withdraw the money in my savings account, and found out that it had been seized by the state. How/What do i need to do to get it back? Is there some form to fill out of something?
    No, it’s nothing like that. It was just not active for a while.

  3. Tiffanie March 8, 2013 at 7:51 am Reply

    A friend of mine just went for a child support hearing. He owes 9 years of back child support. Can he request and have it granted by law that the child support payment be deposited into a college savings account for his child?
    The reason why he hasn’t paid in 9 years was because she abonded him while he was on a ship in the Navy and she went into the military herself and was stationed in the country Germany. That was the last he heard from the mother and she remarried so it was difficult for him to locate her.

  4. Nola July 7, 2013 at 7:10 am Reply

    Are you happy with your child’s savings account. Where did you open it? Is it considered joint until she turns 18?

  5. Lesley August 16, 2013 at 8:34 pm Reply

    Basically I want something like Halifax’s Regular Saver, but that only allows you to save £500 per month. Has anyone heard of or already use a savings account where a £1000 monthly deposit is allowed?

  6. Alfred September 16, 2013 at 10:32 pm Reply

    I already have a savings account that my parents opened for me when I was a baby. I am 16 right now and want to open my own because me and four of my friends want to go on a giant trip to Chicago or Vegas or some place like that the summer we turn 18. Were all about to get jobs and are each going to put money into it so I just need to know how old I need to be to open a savings account for something like this! Thanks 😀

  7. Laurence October 5, 2013 at 12:58 am Reply

    I opened a savings account as a joint account holder with my child, he is the primary account holder. The account is funded with automatic weekly deposits. No money has been withdrawn. No money will be withdrawn until he is 18. Do I pay taxes on interest accrued?

  8. Franchesca November 1, 2013 at 4:00 am Reply

    I am due to have my first child next year and as my mother did for me, I would like to set up a savings account for my unborn child.
    I would like to save something each month in order for them to have a little nest egg for when they’re older and want to go to university, or want to travel, or whatever they would like to do.

    If anyone could please advise me on which have worked for them and which they recommend for what reasons, I would really appreciate it.

    Thank you!

  9. Kiera November 10, 2013 at 3:22 pm Reply

    I’ve had a savings account that has been controlled by my mum ever since I was a child, but considering the fact that I’m now 17 and she no longer has any interest in controlling my money, I want to close that one with Halifax, and transfer that money into a new account with Lloyds TSB, with whom I have my general, day-to-day bank account.

    Basically, I just want to know how I can go about doing this? I have around £4,000 in the Halifax bank account, and I just want to know how exactly I can close that account and transfer that money into a new account with Lloyds TSB? The only trouble is, my mum isn’t willing to help me with my life at all and says that I’ll just have to sort it all out myself, but considering the fact that the Haifax account is currently controlled by my mum, I don’t see how this will be possible without her coming into the branch with me, but she says that she just doesn’t have time and that I’ll have to do it myself. I really need the money for essential things like applying for my provisional license and passports etc., so I really need to get this sorted out A.S.A.P. Any help would be appreciated. Thank you!

  10. Patsy November 15, 2013 at 1:57 am Reply

    Having only recently learnt that Post office savings account books are now officially defunct I am now slightly worried about my savings. Needless to say there was in fact quite a considerable of money stored in my account and has been active since 1999. Any chance that I will still be able to reclaim any of it? Or have all my savings been lost?

  11. Eufemia November 25, 2013 at 4:27 am Reply

    Capital one gives me 0.25% for my child savings account but was wondering if any other offer a higher one.

  12. Nancee December 8, 2013 at 2:34 am Reply

    I have a few siblings who are all in their 20’s (just like me). I have been fortunate enough to understand numbers and money. However, while my siblings are all somewhat successful, none of them have thought about their futures.

    I want to open savings accounts essentially for them so that someday (maybe a decade or a few) I can have a solid amount of cash built up for them in their names whether it be for a rainy day fund or possibly for when their children go to college? Basically just something that is flexible but that earns more than .025% like most banks these days.

    I’d be fine with different options, but I also want to be able to contribute small amounts (maybe 100 per month) so CD’s might be out of it?

    Any ideas?
    I definitely appreciate the effort of a lot of you. But please read what I’m asking. My siblings are financially stable for being in their early 20’s. I never said they didn’t have bank accounts. I never said they didn’t take care of themselves.

    I have been fortunate (more so then they have) and want to start putting some away so that in a decade or two I can turn a lot of “little” payments into something big for all of them.

    This isn’t about my financial situation or their lack of one. They also aren’t minors.

  13. Man December 10, 2013 at 6:40 pm Reply

    Just wondering if you can set up a savings account when your 17 without parental permission. The reason I ask is because my cousin wants/needs to because her mom is stealing all of the money that she’s ever saved up (which is a lot because my cousin is a web designer). Help?

  14. Coy January 9, 2014 at 5:17 am Reply

    I live in the UK but my children live with my ex in the USA.

    I have a savings account for them with NatWest, but it pays less than £1 a year on over £1,000! What is the best way to save for them, ideally tax free (since they are out of the country).

  15. Kurt January 30, 2014 at 5:52 am Reply

    My ex is loopy, the last time i was working she would dump the kids on me for the entire weekend while she went out getting drunk. Im concerned that (now that im working again) she will repeat this.
    Is it permitted to pay csa maintenance into a savings account for my children?
    ok i think i need to be clearer.
    No judge is involved, it is a civil agreement between me and my ex that i see the kids.
    Your absolutely right, the money should go to my kids… problem is, this is not happening.
    Beleive me, if it was going to them i would have no problems.
    Should also be noted I pay for my non biological son as well (even tough i dont have to)

    So as u see, its not the case that i want to ‘not pay’, im just concerned that it goes to fuel drink binges.
    Last time i checked, thats not going to my kids

  16. Erik January 30, 2014 at 5:55 am Reply

    My daughter has several 529 cd’s and a 529 savings account for the cd’s that have matured that are for college tuition. These are in my name with my daughter as beneficiary. Do these need to claimed on the FAFSA and where would it go on the form.

  17. Vance January 30, 2014 at 10:57 am Reply

    had a baby recently and was looking for a good savings account, that will also allow me to access the money quickly. want to save about £40 to £50 per month.

  18. Herman January 31, 2014 at 10:09 pm Reply

    I’m asking because I posted a question and some people suggested that I open a savings account. Its a good idea but I’m not sure if my granny would actually let me. Sadly, she is the one who makes all of these decisions (How come my grandad rarely has a say in junk?). So and since I get money from people at times, I figured it is not safe to keep it in my room since she will take it and spend it w/o telling me. Hopefully with this savings account only I will have access to it (or at least have some type of thing regarding how much access she has to it…). So, if your child asked if they could have a savings account why would you say yes/no? On what terms can they have the savings account? How old would they have to be? Why/Why not would you let them open a savings account? How would you react if your child ask you?

    I’m 13 years old if it helps.

  19. Van February 1, 2014 at 11:30 pm Reply

    we are thinking of opening a saving account for our son. he is 3 months old. this account would be for college, possibly a car when he can drive and any other things we deem appropriate. if you have a savings account for your child how much do you put in it and what is it for? also are you going to sign the account over to your child when they are 18 or not? i think that we will probably keep control over the account and he will have to come to us and ask for the money. i know too many people who have blown their savings accounts on crap. if i’m going to save up the money I don’t just want it spent on junk. what do you think?

  20. Rey February 2, 2014 at 1:42 pm Reply

    does anyone know of a children savings account apart from the child trust fund where i can save money for my little one without being able to withdraw the money before certain age?
    thank you

  21. Laquita February 2, 2014 at 5:58 pm Reply

    I am trying to open a paypal account, and it let’s you choose either savings account or checking account. Well i wanna do the savings account but it asks for a routing number. I have an account number but have no idea if i even have a routing number. Is this even possible to do or do i need a checking account?

  22. Ines February 12, 2014 at 1:20 am Reply

    Hi, my name is Monica and I’m 15 years old, I have just applied (via their website) for a HSBC Savings Account, apparently with a card, but I’m not entirely sure how it works an someone please explain to me how i will be able to deposit and withdraw money, I’m completely new to banking so …. :S I will be starting University soon and would need a HSBC account lol.



  23. Candie February 12, 2014 at 2:00 am Reply

    I am 16 and my parents are seperated. My dad does’t have a lot of money at the moment and has spent his savings, in my opinion, on pointless and selfish things. My mum doesn’t have a lot of money either but she spends it all on us whereas my dad doesnt. Today i overheard a conversation where my mum gave my dad my brothers savings account details/book and said something about taking money out by end of week and im unsure but may have said sgede pay it back for him. I am really upset because i dont think it’s fair for my dad to take my brothers savings and if he’s doing that he’s probably took mine in the past. I’m relying on them for university in 2 years and have saved around £10,000 for the next period of my life and am scared my dad will take it. Is he really allowed to do this? And i dont want my mum to be compensating for him as she works hard to take care of us. How can i approach her about this and what can i do:/

  24. Cortney February 15, 2014 at 5:23 am Reply

    My fiance and I are looking for a place to open up our daughter’s Trust Fund to put her £250 voucher in but we want to use a SAVINGS account, not a shared or stakeholder one. Thing is though, we can’t find one anywhere! Does anyone have a savings account for their Child Trust Fund, and if so, where? Did you get anything for using them such as vouchers? (Most stakeholder ones offer some kind-of vouchers, but not sure about any savings account ones) and do you know their interest rate?

    Our daughter is 4 months old on 22nd Sept, so we need one soon! Any advice or info you could give us is much appreciated! x

  25. Faustino February 18, 2014 at 6:32 pm Reply

    I want to open a savings account for my son. He is 1 year old at the moment. I am not interested in the child trust accounts rubbish from the government. I just want a good savings account, that I can open with a £100 deposit and pay £20 per month in, that give a good interest rate but that my son cannot access until he is 25 years old. I have been looking on money supermarket, money saving expert etc but am totally confused! They go on about bonds and all sorts! I am so baffled! Can anyone help?

    We’re in the UK xx

  26. Sumiko February 18, 2014 at 9:08 pm Reply

    In the US specifically for chase or td bank, does a child who is 16 have more “rights” in a joint savings account with a parent than a 15 year old?

  27. Isiah February 20, 2014 at 7:39 am Reply

    I was just wondering if anyone can help me –
    Is it possible for me to set up a savings account for a child in another country when I don’t know who their legal guardian is….
    Basically, I worked at an orphanage & struck up a real bond with one of the children. I know at least one of his parents are dead & I don’t know about any other family. I would like to set up an account that could pay money for certain things during his life (like when he starts school) but have no idea how to go about it.
    Can anyone give me any advice? Thanks xx
    Kamilla – what’s that got to do with my question??

  28. Kindra February 21, 2014 at 10:56 pm Reply

    I just got a full time job, and only have a checking account. I got rid of my savings account while in college because it seemed like I was just adding an extra step in my check-writing process (i.e. – transfer from savings to checking to make sure checks are covered) and in return I’d get almost nothing in interest. Now that I’m making more money, is a savings account really even worth it? Or should I just keep it all in checking for convenience? (By the way, I do NOT want to put my money into those online savings accounts with the high yields…I want a bank where I can see a person…)
    How do you get your money from these places like ING and such? Obviously there’s no actual bank to go visit…
    The CitiBank idea is definiteky a good one. However I looked at their locations and the closest branch to me is 5 hours away. I just don’t feel comfortable not being able to visit a branch now and then.
    The CitiBank idea is definiteky a good one. However I looked at their locations and the closest branch to me is 5 hours away. I just don’t feel comfortable not being able to visit a branch now and then.

  29. Coleman February 22, 2014 at 6:52 am Reply

    My father wants to open a savings account for my son who is 1. Will we have to claim it on our taxes?

  30. Seth February 22, 2014 at 6:58 am Reply

    Children under 12 years old

  31. Ping February 22, 2014 at 8:03 am Reply

    If so, how much do you put in a week? Just curious.
    I have a saving account set up for my little guy but I only put in $20 a week because I can’t afford much more than that right now. His father also has a savings account for him and his grandfather(my dad).

    BQ-Are savings bonds even worth buying nowadays?

  32. Dortha February 22, 2014 at 8:03 am Reply

    we want to open a savings account for our son and (step)daughter. my fiancee wants to put half of whatever we put in our son’s account into our daughters. so if he gets 5 she will get 2.50. he says that it is her mothers job to support her too and that is why we should only put in half as much. plus he pays support. what do you think? is it fair that way? should we tell the mother about the account and let it be her choice to put money in or not? she will not have access to take money out though. only i will.
    we are not putting the mothers name on the account because she is not responsible. i wouldn’t want her to think she can just take out the money whenever she wants. it’s going to be like a gift from my fiancee and i when the children are older. he will end up with more anyways because she will graduate a year before him and start college and he will start the next year. we are going to stop putting money in when they are 18 (probably).

  33. Agustin February 26, 2014 at 4:50 pm Reply

    I am thinking about getting either a CD or a savings account set for my almost 3 year old niece for Christmas. I only have minimal knowledge on CDs but what I would like to do:

    Initial deposit would be ~$100 and I would like to add ~$50-100 every year. (Continue adding to for Christmas and/or birthday, which are 10 days apart). With a annual interest rate.

    Would I be better off getting a savings account and adding to it annually OR setting up a CD with a 12 month maturity and just adding to it annually, or which the allotted amount of time they allow and have it mature another 12 months.

    I found calculators online but none that I can add to annually or that I was able to understand. Any information would be helpful!

  34. Eddie March 1, 2014 at 8:20 am Reply

    I want to save up money to go on a trip to europe…Which one would be better to have a savings acount or a CD account (certificate of deposit account.) I have heard that a CD account earns more interest than a savings account. But can you add more money to a CD acount, or would I have to wait until I renew the account to add more. Im not sure which one I should get. Im not going to be taking any of the money out until I have enough though if that makes a difference

  35. Neida March 5, 2014 at 5:12 pm Reply

    My paycheck gets garnished $388 a month plus an additional $122 to pay what is owed in back support. I don’t mind at all because I love my son to pieces. But I have a savings I just started so if I am paying on time every month plus extra can they still drain my bank account? I have custody of my oldest daughter from a previous relationship I raise on my own and my ex refuses to work because between welfare and collecting child support she quotes, “I’m on a pretty sweet ride from the government.” so i’m worried if she’ll try to take me for every last dollar my SON is entitled to even though i’m trying my hardest to pay as much as I can and still make ends meet.

  36. Shenna March 14, 2014 at 4:06 am Reply

    I live in California and have a 4 1/2 year old boy.
    Me and his mother (we were never married) split up when he was 1 1/2 years old.
    At the time we were still together we opened up a savings account under his name. My son could not remove any money from the account until he turned 18 years of age. I put in more than $1,000 of my money to get him started, his mother never put in a single dime. The way the account would work is that every year the money was in the account it would accumulate interest.
    Around the time my son was 2y/o I was laid off from my job.
    I lost my car cause I couldn’t pay it and I had to move back in with my parents.
    I stopped paying her child support because I was broke.
    I tryed helping in anyway I could, but there was no way I could afford to give her $700 a month.
    At the time I didn’t know I could go get a modification to get my payments lowered.
    So for a whole year I didn’t pay her the full amount of child support.
    My current girlfriend was the one to inform me that I could get a modification. So around the time my son was 3y/o I went back to court and got my payments reduced to $90 month plus $50 for the arrears.
    Still I owed her more than $4,000 in arrears. I started working again so she took me back to court to get more money now I currently give her $200 a month plus $100 in arrears.
    Just recently I remember about the account we open for my son 4yrs ago.
    I went to the bank to see if I could deposite some money in his account, and the account had been closed for more than a year!
    I asked my sons mother about the account and she said she withdrew all the money and closed the account!
    She said she took the money around the time I stopped paying her child support.
    So my question is, is there anything I could do?
    I’m paying her back for what I owe her so I think its only fair that she pays back my son his money. Or some how get it deducted for the arrears. I feel like shes basically double dipping. She took my sons money and now shes taking mine.
    Is there anything I could do or is it hopeless?

  37. Delia March 14, 2014 at 4:06 am Reply

    If you open a savings account for your child for when they are eighteen and it is in their name, who legally owns it when they turn eighteen? Does the child have to wait until you give them the money or do they get it automatically? Is it the same for savings bonds? (UK)

  38. Scotty March 14, 2014 at 4:06 am Reply

    I’m currently investigating HSBCs high interest savings account for children and I’m confused by the jargon. I’m not very technically minded but I want to make the right choice. I’ll try to make this as clear as possible.

    According to the HSBC website the current rates are:

    Net 4.29 %
    Gross 5.37%
    AER 5.50%

    Now I’ve looked up what each of those terms mean and the one that really confuses me is AER, which is defined by HSBCs leaflet as a NOTIONAL rate which illustrates what the gross rate would be if interest was paid and compounded each year.

    For those of you still with me, does this mean the rates are going to change? And how much of the interest will actually be taxed? What would say £300 a month earn in interest at the end of the year based on the fact that the interest is paid monthly? And why do they have such an exotic range of savings accounts? I’m finding it hard to pick one so if anyone has experienced this personally any advice would be welcome as well, thanks!

  39. Seth March 19, 2014 at 5:34 pm Reply

    My parents opened a savings account for me when I was little so that I would have money for college. Recently, my dad has been reluctant to use that account and I’ve been wondering whether or not I still have money in it. I also have money that I received from my mom’s social security that was supposed to strictly be for me and my college tuition (she had made it so that all of the checks that we received would be for me). Is it still possible for my dad to have taken money from my account, even though the money that was put there was supposed to be for me?
    The money from social security went into my savings account.
    My mom passed away three years ago and her social security went to me.

  40. Ula March 19, 2014 at 5:35 pm Reply

    During marriage, my spouse and I put money in cds for the kids. When the cd’s were about to mature we were separated and my spouse was getting into large amounts of debt. To secure the kids’ savings, I took the matured cds and moved the money into savings accounts, in each child’s name with me only listed as the custodian. My spouse kept asking where the money is and I said it was spent on bills so it wouldn’t be mis-spent. My spouse and are are trying to work things out, but it’s not looking promising. In just 6 months my spouse racked up $21k in debt and has been in collections, struggling to pay it back.

    If we divorce, is the money int he accounts community property? We live in Ohio. Thank you

  41. Shanel March 21, 2014 at 8:07 am Reply

    My friends little boy turns 1 next week.

    I’d like to set him up something, with 10 pounds or so, and put in maybe a pound or two a month until he is 18, so he can then access a little trust fund.

    Do things like this exist? Im struggling to find anything.

    A friend suggested I need his birth certificate but I want it to be a suprise for them.

    Has anyone got any suggestions? I dont know why it is proving so difficult.

  42. Leo March 21, 2014 at 8:07 am Reply

    How did you start it?
    What type of account is it in (savings, money market etc)?
    How much is in it and how old is your child/ren?

    My fiance and I stopped using our debit cards and we always use cash and after every day we put out change into our son’s piggy bank, he has about $150 at 11 months old. I am looking for the best/safest way to invest it, should I just open him a saving account for now until we get more money in it?

    Thank you!!
    A CD is a great idea and I think that is what I want to do in the long run but I don’t have the $500 all at once to start it off.

  43. Lucio March 21, 2014 at 8:07 am Reply

    Hi My husband and I just open an account for my son, basecally its under my husbands name cux my son was just born (under age) well we put a good amount of money in there that was given to us from family members. My husband and I are worried about one thing, do i have to report this when I do my taxes. Am I going to have to pay taxes on that money? I worried cux basecally its his money! plz any answers?

  44. Virgina March 21, 2014 at 8:08 am Reply

    i would like to open a savings account for my 4yr old Gt Niece where i can put birthday and christmas money in. Which bank would be the best one as I dont want her to touch it till shes 18.

  45. Florentina March 21, 2014 at 8:08 am Reply

    Do you put away money for your children ?
    If so, how old are your children and how much is in their account.
    If you think it is too personal, than don’t answer.

  46. Sebastian April 11, 2014 at 8:17 am Reply

    I have some money from gifts and from our own savings that is set aside especially for our 10 month old daughter. I am looking into opening an account so that her money isn’t mixed in with ours (and isn’t accidentally spent). I talked to our bank and it seemed every option they gave involved taxes, fees or stipulations. So we decided on just a simple, regular savings account for now (college fund to be set up later). My question is, would it be safer/easier to set up the account in my name or in her name? She has her SSN and all that, but if we wanted to use the money to say, pay for medical expenses or get her a car, would I be unable to touch that money, since it’s in her name? That’s why I want to avoid the custodial type accounts, because she can’t use it until she’s 21 and we can’t legally touch it.

  47. Mack April 23, 2014 at 1:51 am Reply

    I am looking to set up a savings account for my daughter but am having difficulty finding a bank that does just a normal savings account that i can pay cash intot he branch without sending a cheque or direct debits. i would also appreciate any advice on what would be my best options should i invest in shares or just have a savings account??

  48. Maragret April 26, 2014 at 7:27 pm Reply

    Year 2005 my son who is 3 years old was given by his godfather a christmas gift which is a savings account at Washington Mutual. With a deposited money of $62.00. All money that my son received from friends, christmas gift, birthday gift was deposited on that account until it reaches $332.91. Now we found out that the bank account was being closed by the same person who open the account for my son. And all the money of my 5 year old son was stolen. WaMu representative said that because the person who open the account was the custodial. That’s why he has the right to withdraw and close the account. It was so frustrating and makes my wife cried. This is just a warning, please don’t accept savings account as a gift from someone for your children. Especially from Washington Mutual.

  49. Mack May 10, 2014 at 8:58 am Reply

    i dont really know that much about savings accounts but i opened a savings account for my 2 yr old son..(bank of america)….i started it with $36 and it seems to go up $0.01 every month… i want him to be okay when he gets 18 or 21… is this reight account or are there other ways to save better for mysons future.. is it always gonna be a penny a month because thats nothing…

  50. Francesco May 14, 2014 at 11:59 am Reply

    My son already has a Child Trust Fund for when he is 18, but I would like to open an instant access savings account for birthday money so he can spend it later on but it does not get mixed up in my bank account. Can you recommend one?

  51. Yuko May 27, 2014 at 10:08 pm Reply

    Can anyone recommend any good savings accounts especially for an adult to put money in monthly for a child when he is older? What sort out account is best an isa or just a savings account? Also who would have to open this and have access to it?

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