Best Savings account for kids/babies

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I searched and could not find anything. Anyone have good advice for the best savings account for a kid/baby. I have a 1 year old who just got a bunch of money for Christmas. Was curious what is shielded from becoming a fee account, and yields the best interest. I have USAA also as an option, as well as the American Airlines Credit Union.

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Not sure how much money you have. Northwest federal credit union provides a youth savings account. You can look into that. The rate is 2.28% for now with no other fee. But the upper limit is 1500.

Not sure if you are eligible to join, but if it is a small amount of money (less than 500), go with a BECU account. They pay 6.17% up to the first $500.

Early Saver Accounts
With a premium rate on the first $500, kids and teens can quickly learn the power of saving with our Early Saver Account. Any member under age 18 can open an Early Saver with a $5 minimum opening deposit.1
APY* effective 01/01/2013

$0-$500 $500.01+
Member Advantage Savings
6.17% 0.10%
Savings 0.10% 0.10%
Early Saver Savings 6.17% 0.10%

that would be awesome ^^^ however its WA state residents only =(

Do you want to start a 529 for that child?

Chevron FCU

Also consider: depending on how much money is involved, it may make sense to put most of it into CDs or other term investments rather than a savings account.

We are talking $300 right now. Her first birthday is coming up in a month, so that will add more. I am on the fence about going with a local bank, or usaa and or credit union. The local bank allows for us to go to the bank as she gets older, and she can put money in her self/check her balance. Online banks/credit union will be better for no min balance/no fees, and most likely have higher interest.

kintro said:   Chevron FCU

Whats required to join?

forbin4040 said:   Do you want to start a 529 for that child?

No. Its a long debatable topic, but no. I work in a job field with lower starting pay, but better later in life pay. I am 26 and money has been tight. I have 17 years till college comes, I hope by then to be much more fiscally sound.

I opened a subaccount at my local Credit Union, the interest rate is not great, but it's local and she can take in her piggy bank and deposit the money, plus get a sucker. She's only 3.5 years old so doesn't understand really. Right now we do that a couple times a year and then I push it to her 529 plan at the end of the year (in addition to the monthly deposits to the 529 that we contribute). So maybe look at that, when there's enough try laddering some CD's or something for slightly better rates and then start a 529 with those or some of those funds.

My credit union offers a savings account with a better itnerest rate that locks similar to a CD with a yearly maturity date, once it hits $1k it rolls automatically into a 1 year CD and another one is started. We use this for ourselves, if a local bank or CU has this option it might be good, it would start you on laddering CD's.

rickt86 said:   kintro said:   Chevron FCU

Whats required to join?

Anyone can join this CU. Assuming you don't live in their geo-specific region, then one-time $30 to Contra Costa Historical Society + $5 min member share (for you) + $5 min member share for kid.
The 7% rate is only up to $1000 and only until the little one reaches 21. This leads back to what Pessimist said. Larger amounts you'd need to look elsewhere.

It's been a stable rate for years ever since I joined but of course is subject to change.

Also Main St Bank has a Junior AirSavings Account. Check it out at

I like ING because I have the ability to set up children's accounts under a single ID and transfer money between the accounts. When the kids log in with their own credentials, they only see their account, and they have limited capabilities to transfer or withdraw funds. When they get older, they can also get a debit card for the account.

No telling what might change once Capital One completes their transition, but I like the way it is set up now. As for a walk-in banking presence so that a kid can "see" their money at work...How often do you go to the bank, and how do you think your child will bank in the future? Passbook savings accounts and trips to the bank are a thing of the past.

ESA at a brokerage if you prefer stocks to savings account yields. Tax free for education, and at $2k/year, you can only wish that education would be so cheap as to have a problem with extra funds left over.

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