Issue link: https://fredparent.uberflip.com/i/235797
• It is tax-free savings. Children do pay tax, but most don't use up to their allowance, so their savings interest is tax-free. Interest starts accruing on deposit the next business day. Where should you open a children's savings account? Many banks offer low-cost or free savings accounts for children that allow parents to guide them through the basics of smart money management. These accounts typically require a parent to open the account in the child's name and allow the adult to show the child or teen how saving works. It is the child's money but many savings accounts allow a parent to stay in control of the cash until the child turns 18. An unsolicited poll on local moms' group Facebook page asked the question: Does anyone know of a bank that offers children's savings accounts without having to keep a minimum daily balance? Favorable responses included BB&T, Capital One 360, Stellar One, Union First Market Bank, Wells Fargo and many credit unions (examples: Navy Federal Credit Union and Virginia Credit Union). • BB&T Young Savers Account is for clients under the age of 18. No minimum balance requirements, no minimum deposit, and interest compounded daily. • Capital One 360 Kids Savings Account offers no fees, no minimums and earns interest. Teaches kids to be good savers with kidfriendly 0.75% variable Annual Percentage Yield (effective 11/1/2013), their own sign-in info and a bunch of hands-on savings tools. • Stellar One Minor Savings. Must be under 18 years of age to open with $5 minimum and six transactions per one month cycle permitted; $1 for each transaction thereafter. No minimum balance, no monthly service charge and interest paid on all balances (compounded and paid monthly). Free online banking and ATM card available. • Union First Market Bank Statement Savings Account for minors. It can be opened with $50. The $1.50 maintenance fee is waived for account holders under the age of 18. • Wells Fargo Way2Save Savings Account requires a $25 minimum opening deposit and has no monthly service fees for account holders under 18 (19 in Alabama). There are several options to set up savings accounts for kids: Joint ownership option gives children the ability to use the savings account while parents monitor account activity; Minor by option gives children access to their funds at age 18; and Child (sole) option grants children sole access to make deposits and withdrawals, as well as the option to have an ATM card. • Navy Federal Credit Union Basic Savings Account is just $5 to open and has competitive rates with no monthly service charge. Those under 18 must apply at a branch or call 24/7 at 1-888-842-6328 • Virginia Credit Union Custodial Accounts for Minors offers a convenient way to save for the benefit of a minor child while limiting the child's access to the account. Account can be opened with any amount and dividends are reported in the minor's name. It is important to note that as an emerging generation of savers get more tech-savvy, onlineonly banks, also known as direct banks, will become more prevalent as teens will look to these banks because all they think they need is a place to grow their money. Open a savings account today and give your child personal finance empowerment. If your child can add, he can save. Nikki Ducas is a Fredericksburg mom to a nearly 5 -year-old and 17-month-old. She is always thinking about economics and uses her time with her boys as teachable moments. www.FredParent.NET 33