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