ING Direct Kids Savings Account Review
ING Direct Kids Savings Account is a better way to teach children about money and saving.
A few years ago, when I was quite active on Amazon Marketplace selling books and electronic devices, I opened a savings account at ING Direct for my daughter so that I can save the money from selling those stuff for her. Back then, however, there was no specific account for minors at ING, so what I ended up was having a something like a joint savings account, like the one I have with my wife, but with my daughter as the primary account owner and I am the secondary owner. And it worked.
Now, with the introduction of ING Kids Savings Account, the online savings account from ING Direct that’s specifically for kids, I imagine the process of having a savings account for children become much easier. Essentially, the Kids Savings Account works exactly like the Orange Savings Account which almost everybody one now. With the Kids Savings Account, you get a 1% APY yield for your deposit and the account has no minimum and no monthly fee, which are good for the kids when they start small. And the 1% yield is also the same as the main savings account, so the kids, with possibly a smaller balance of the account, get the same treatment for their money as their parents do. According to ING, when kids have opened their own Kids Savings Account, they have the ability to manage their own account and once they log in with their own User ID and PIN, they can do things like
- Check their balance
- Change their personal info
- Change their PIN
- Change their account nickname
- Create a personalized ‘Saver ID’
- Download their account history, tax forms and eStatements
As you can see the kids, even as the account owner, are not allowed to transfer money to and out of the account. That responsibility still belong to the adults who co-signed with kids. I like the idea of restricting the kids from moving the money. Right now, I think it’s more important to teach them the concept of saving money than how to spend it. With the adults still retaining the control of money transfer, we can be sure that the money is only spent on what is appropriate, not on whatever the kids want. When the child turns 18 years old, the account will be automatically converted into the Orange Savings Account (if that account still exist at that time ) and the child will have full control of the account. Money can be added to the Kids account the same as you do with the Orange Savings Account, such as using ACH bank transfer or check deposit.
So what do you think of this new Kids Savings Account? Is it something you will consider for your child?
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