Best Bank Account for Kids?
Young Americans Bank in Denver was on Kiplinger's list for the best accounts for kids. This is the first time I've noticed this bank. I went over to the bank's website, and looked around. According to the bank:
Young Americans Bank in Denver, Colorado, is the only bank in the entire world specifically designed for young people ages 21 and younger.
I couldn't find any mention of interest rates at the bank's website. According to Kiplinger:
It takes just $10 to open a savings account (an adult must cosign) that earns 0.1%. An ATM card costs $5 annually, and you can make two free withdrawals a month.
That doesn't sound appealing to me. If you're going to offer an account for kids, why not have a high interest rate with a balance cap? For example, why not 5% for the first $500? Or at least offer something that comes close to internet savings account rates. That would make earning interest a little more fun. And why have an annual ATM card fee?
Here's how Young Americans Bank describes interest in the savings account page:
Money in a savings account grows because it earns interest. For example, if you deposit $10 into a savings account that earns 2% interest, in 5 years you will have $11.05!
Based on Kiplinger's information, here is what it should say:
So if you deposit $10 into a savings account that earns 0.10% interest, in 5 years you will have $10.05!
Watching $10 grow into $10.05 over 5 years doesn't sound fun to me.
Young Americans Bank does open accounts for those outside of Colorado. According to its How to Open an Account page, the sponsoring adult needs to mail in a copy of a photo ID. I don't see any application to print out.
The bank has been a FDIC member since 1987 (FDIC Certificate # 27010). It's a small bank with just $12.94 million in deposits. Please refer to our financial overview for Young Americans Bank for more details.
In my opinion, there are many better options for kid bank accounts. I'll cover some of these soon. If you have any recommendations, please leave a comment.
Banks Mentioned in this Post:
|Young Americans Bank|
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