How Can I Find a Kid-Friendly Bank Account?
Q: 'I want to open savings accounts for my daughter, age 9, and my son, 7.'
By Amanda Gengler

(MONEY Magazine) - Q. I want to open savings accounts for my daughter, age 9, and my son, 7. But the high fees on low-balance accounts mean they're likely to end up losing money. Is there a solution?

A. You're right: An ordinary savings account usually isn't a great deal for kids. The average bank requires a balance over $200 to avoid monthly fees of around $3 on savings accounts, which pay only half a percent. That means a child might pay $36 a year in fees and earn only 50ยข in interest. Luckily, most banks offer a no-fee, no-minimum option for minors, although they don't always advertise that fact--you have to ask. Some even offer special perks for kiddie savers, such as higher rates and prizes for deposits. Compare terms at local banks to find the best deal. But don't worry about nabbing the highest rate. The difference between, say, 1% and 5% is trivial on a small balance. What matters most is the experience. Kids love the grown-up feeling of going to the bank and handing over cash--and learning to feel good about saving may be the best financial lesson you can give them. Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.