Peter Newton

Hi:

I am looking for a good kids savings account - just somewhere to put birthday money etc. 4-5% interest, no fees etc (I already have a college savings account set up).

You can't believe the hassle - my local bank has an account that pays 0.25% interest - if you want more you either have to pay monthly fees, maintain a balance of $2500 or be over 18 years of age (my son is 4 weeks old!)

Has anyone found a good savings account for their kids? I live in New York.

Cheers
Peter

fatbrit

https://us.etrade.com/e/t/home/educationcustac

robskatie

Not a savings account, but another good one to sign up with is www.upromise.com, we got a huge amount back with century 21 when we sold our house, worth it IMHO

Sally

I have been wondering this myself - we took our children's money when we moved here and we need to give it back and find a good home for it!

Bob

tbh, it's better to have a pension saving than save up for college fund because it means you'll have money for college and not be eligible for the bulk of student loans and scholarships for the kid...

Vicky88

HSBC have the best interest rates for online accounts. Last I checked it was paying 4.8%.

Bob

wasn't that just a special they were offering though?

Vicky88

By the looks you are right, it's back to 4.5%, which is still probably amongst the highest. I have an account with Emigrant Direct, and that pays 4.5%. Don't get sucked into ING as they are always a step behind the above 2 in raising their rates. They do promotionals all the time, and beware about your money not being available for 5-7 days when you do an electronic transfer with ING.

Yorkieabroad

Any idea what interest thats paying at the moment - couldn't find it on the website..

Duncan Roberts

ING direct do a decent savings account. 4.15%, liquid with no minimums, fees or other crap. Never had problems with the money not being avaiable, mostly its either next day or 2 day wait. I like them.

fatbrit

Excellent point!

fatbrit

Depends how good your investment skills are. Bung it in a balanced mutual funds and you'll be getting 6% to 9%. Blow it all on a start-up biotech company and you could be retiring to the Caribbean or crying over spilt milk.

Yorkieabroad

Sorry - misunderstood - I thought he was looking for a straight savings account, (ie bung it in and collect the interest) not investment accounts.

fatbrit

He was -- they're a waste of time! Doing this, he can teach the kid more and get a reasonable return on the investment.

Yorkieabroad

They certainly are at the 0.25% interest they offer for kids accounts round here....in the UK Halifax do one kids account with 10% interest as long as they deposit a certain amount monthly - OK, it works out at 5% average over the year, but at least its reasonable and the kids can see the benefit....I'm just looking for something that a 3-4 year old can see and understand - (mutual funds are a bit advanced for that age!) so we have set up "Bank of Dad" that has 10% interest, bank book etc and my eldest thinks its hilarious that the "bank" will give him money for doing nothing other than leave the cash there...we handle the 'real' investment for their futures, and at some point they'll be introduced to that, but a bit early yet..