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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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ING Direct's Kids Savings Account Review



Not many people have noticed, but ING Direct launched a new product in October called the Kids Savings Account. In a nutshell, it's basically a joint account with an adult. What appears to make it a little different than a regular joint account is that the child has limited access. The kids can log in with their own customer number and PIN and check their balances. Only the adult can transfer money. When the kid turns 18, the Kids Savings Account will automatically convert to an Orange Savings Account.

The Kids Savings Account looks like it has the same rate as the Orange Savings Account (1.10% APY on all balances as of 11/19/2010). Like the Orange Savings Account, it has no minimum balance requirement and no monthly service charge.

The adult has access to the same money transfer features as the Orange Savings Account. The adult can make deposits and withdrawals using their own ING Direct account or one of their linked checking accounts. Up to 3 non–ING Direct personal checking accounts can be linked. Transfers can be done as a one-time transfer or as automatic regular transfers which can be a useful way to deposit allowances.

According to ING Direct's Orange4Kids fact sheet:

It teaches kids about the value of savings and compound interest while offering the same level of flexibility, freedom, and security as the Orange Savings Account. It’s a savings account built specifically for kids, without the pink ceramic pig.

I'm afraid with today's low interest rates, teaching kids about compound interest won't be easy. With a 1.10% APY and 10 years of compounding, a $100 balance grows to $111.56. Without compounding, it grows to $111.00.

Some credit unions offer kids accounts that earn a high interest rate up to a small balance cap (like $500). That can make it a lot more fun to learn about interest and compounding. With a 5.00% APY and 10 years of compounding, a $100 balance grows to $162.89. Without compounding, it grows to $150.

Even without any high yields, ING Direct's Kids Savings Account is a lot better of a deal than what Kiplinger's labeled as the best kids savings account (see my post). At least ING Direct's Kids Savings Account is easy to open and to manage, and you don't have to worry about fees.

ING Direct Black Friday Sale

For those wondering if ING Direct will have another Black Friday Sale like the one they had last year, please refer to this post. I have a few early details about some of the promotions.

  Tags: ING DIRECT, savings account

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Comment #1 by Anonymous posted on
This would be a great way to teach children. I also noticed by clicking your savings account button you have a link just for children's accounts. I have found a place that pays 7% up to $1000 for children (Chevron)  and also found one that seems be available to all children in any state that pays 3.5% on all amounts (Lake Michigan Credit Union). Oh wouldn't it be nice to be a child right now for those rates.

Comment #2 by Anonymous2 (anonymous) posted on
The Lake Michigan Credit Union tip is awesome, but you have to belong to some specific groups to qualify.  See .  I'm still looking for a great place to park my kid's money, so keep the tips coming. 

Comment #4 by Tom (anonymous) posted on
Remember to use an ING Direct Orange Key when signing up to get a bonus, try using 14424363S1.

Comment #8 by Anonymous posted on
If anyone is looking for an orange key, I found one here: