Places to Save Money Online for Your Children
Michael T. Scott
www.ChildBankAccount.net
http://www.childbankaccount.net
Basic Types of Online Savings Accounts
The majority of banks offer online management for at least some of their savings accounts today, There are a few basic types of which are offered online by most banks.
Basic Savings AccountsRegular Savings AccountMoney Market AccountsNotice AccountsCertificate of DepositChildren's Savings Accounts
http://www.childbankaccount.net
Basic Savings Accounts
Can usually be opened with a relatively small initial deposit
There is typically no minimum balance
Funds can be accessed as and when needed
Some accounts may have withdrawal limit before charges are applied
Rates are a little higher than those of ordinary checking accounts
Rates typically low in comparison to other types
http://www.childbankaccount.net
Regular Savings Account
Very much the same as a basic account in most respects
Rates are a touch higher
Regular monthly deposit is required
Failing to make a deposit may result in penalty charges or occasionally even account closure
May also require a minimum first deposit to be opened, depending on the institution
http://www.childbankaccount.net
Money Market Accounts
Usually yield higher rates than basic savings accounts
Rates will vary as economic changes occur
Often require specific initial deposits
Often minimum balance requirements
May occur fees is minimum balance not kept
Many allow you to write checks from accounts
Withdrawals and numbers of checks written per month may be limited
http://www.childbankaccount.net
Notice Accounts
Very similar to regular accounts
Rates are usually a little higher than regular accounts
Rates not as high as fixed term accounts.
Specified period of notice before you can make withdrawal
Notice period of time varies between accounts and banks
http://www.childbankaccount.net
Certificate of Deposit
Taken out for a pre-determined amount of time
Typically for periods between 6 months and 10 years
Offer higher, often fixed interest rates because money is locked away for period of time
Withdrawals are possible on some CDs, but usually with penalty charges
Minimum deposits and balances vary from one bank to another
http://www.childbankaccount.net
Children's Savings Accounts
Available in instant access or fixed term variations
Usually offer reasonably good rates
Often possible to keep part of the savings accrued tax free, with the other portion taxed at reduced child's tax rate
Can often be started with very low investments
Longer terms may require slightly higher deposits