What Type of Bank Account Should I Open for My Baby?

When it comes to opening a bank account for babies the most important factor is security. The most secure accounts are usually those that offer the maximum amount of money in the account in the form of a savings account. The best savings accounts for babies are those that offer no minimum balance fees, no ATM fees and are a no debit withdrawal fee. Those banks that do these things are definitely the ones you should consider when setting up bank accounts for babies. Here are a few other things to consider when it comes to what type of bank accounts for babies to open.

Savings accounts for babies have tax advantages as well. With some financial institutions you can choose between a traditional savings account and a thrift savings plan. The traditional savings plan allows you to withdraw a certain amount each month and use the interest earned from those withdrawals for making payments on your loan. If you have a good cash flow this can be very beneficial.

Both of these accounts also have the option of direct deposit. This means the cash deposits you make to your account are deposited directly into your bank account without the need for a banking account for babies. A brick-and-mortar bank account for babies will require the baby to have a banking account when they are old enough to handle electronic transfers. Direct deposit is a great option when setting up a bank account for babies.

Online banking services like PayDotCom and Neteller are a great alternative for brick-and-mortar bank accounts. Many people are turning to these services to get closer to their family members and friends. You are able to set up these accounts with debit cards, and have funds deducted via online access whenever they are used to make purchases. These bank accounts are similar to savings accounts except that you do not have to have a savings account in order to use them. These online bank accounts for babies can be accessed through a personal computer or an internet-connected device.

Gift certificates are an excellent way to get your money saving ideas for your infant started. The best savings plan for babies should be one that is tied to their particular needs. By purchasing various gift certificates you can help your baby to learn to spend their money in a responsible manner. Gift certificates for activities like diapers, wipes, and clothes can be purchased for a fraction of the cost of these items when purchased at a department store. When setting up a money gifts for baby, you should research all of their needs so that you can purchase certificates that are geared specifically towards those needs.

Another option that many new parents find helpful when setting up a money gifts for baby is opening a checking account for baby. Most banks offer a variety of savings accounts that babies can easily access. These accounts can be either a regular savings account or a CD savings account. CD savings accounts are designed for infants that are still months old. While regular savings account will have features that would be appropriate for an adult, infant CD’s allow babies to make large deposits without having to wait to reach maturity.

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