If your child’s piggy bank is overflowing or you want them to start earning interest on their savings, here’s a simple thing to do: open an interest bearing savings account with them.
Our local credit union, BECU, offers a youth savings account (“Early Savers Account“) with premium rate on their first $500 in deposits, and the standard posted rate thereafter. This means our eight year old is earning 6.17% on his savings (up to $500, then 0.17% after $500).
In addition to helping him save, the bank (and not just the bank of mom and dad) is paying him interest and it helps teach important money lessons. Continue reading