- 1). Consider the purpose of the account. Do you simply want a safe place where you can set money aside for your child or do you want the savings account to be more of an investment in your child's future? This will be the determining factor on what type of account you choose to open so ponder this carefully.
- 2). Choose the type of savings account you will want to open. Most likely, you will choose either a basic savings account or a CD depending on the age of your child. A CD with a high interest is probably the best idea if your child has just been born. This way, you can allow the CD to rollover for years until you're ready to open a regular savings account.
- 3). Determine how much involvement you want your child to have with the savings account. Barbara Weltman explains that most banks have two distinct savings accounts for children. A "statement account" gives your child a copy of the monthly statement for that account while a "passbook account" offers a replica checkbook which illustrates every deposit and withdrawal that takes place within the account. You could also choose to leave your child completely out of the loop when it comes to the savings account until you feel he or she is ready for that responsibility.
- 4). Find the right bank for your child's savings account. This should be the bank with the highest interest. Contact local banks in your town or city to find interest rates. You can also use an online bank, such as ING.
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