10% Savings Account

[jeffrey]

For those that have kids, check to see if your local credit unions have specially accounts for kids where they can earn much higher than average rates on their savings. These are usually limited to between $500 - $1500, but they can pay as high as 10%. Here's an example:

http://www.americanrivierabank.com/personal/savings/kids-savings-account.html

[MonkeyMama]

To expand on this, here is a place to look up these bank accounts:

http://www.depositaccounts.com/savings/childrens-savings-accounts.html#P|31|100|false,false,true,true,true,true,true|US|Apy desc

I admit I was skeptical, because the catch on the 10% account is the parent has to have an account. I immediately saw a 7% interest rate at a local credit union (per link), but we had chosen not to bank with them because they had ridiculous fees to bank with them. So, just not convinced that the interest would outpace the fees to bank there.

But, I kept an open mind and called the 7% CU today, and it turns out we don't need to be members or account holders for our kids to open an account.

THANKS Jeffrey!

[Goldy]

Well this is interesting. So could I fund an account for a newborn? There is one that has a max of 2k @ 7% and after 18yrs of compounding it would be a nice sum.

[lorraineb]

Well this is interesting. So could I fund an account for a newborn? There is one that has a max of 2k @ 7% and after 18yrs of compounding it would be a nice sum.

I would think as long as the newborn has a SS# and you qualify to open an account at that credit union, there shouldn't be a problem. Call and ask -- can't hurt.

[MonkeyMama]

Well this is interesting. So could I fund an account for a newborn? There is one that has a max of 2k @ 7% and after 18yrs of compounding it would be a nice sum.

I think the thing is only the $2k would earn the 7% interest, so there wouldn't probably be a lot of "compounding." But it would certainly be a nice/safe return on $2,000.

All you need is a social security number, so the newborn should be fine.

[scfr]

To expand on this, here is a place to look up these bank accounts:

http://www.depositaccounts.com/savings/childrens-savings-accounts.html#P|31|100|false,false,true,true,true,true,true|US|Apy desc

Deposit Accounts web site comes through again!
Anyone remember Poundwise who used to keep the extensive list of best bank accounts on SA? Sometimes I wonder if he left SA to start Deposit Accounts .....

[MonkeyMama]

Well this is interesting. So could I fund an account for a newborn? There is one that has a max of 2k @ 7% and after 18yrs of compounding it would be a nice sum.

I just saw one that was $2k at 7%, but you have to be age 10-13 for that one. & you have to add $25 per month. (Assuming it is the same one?)

Just got to read the fine print on all of these.

[fruitbowlk]

I found one that pays 10 percent.

[romavia]

Actually I really want this kind of activities to be happening in the routine of students and kids. The accounts opening and then understanding about the laws applied on them is very helpful for the kids to adopt the country's stated laws in future.