September 26, 2019 Opening A Bank Account For Your Child
If you’ve just started a family, then you understand how hard it was to get you where you are today. Take a moment to reflect – it wasn’t always easy to save your money, was it? That’s why we want you to open a bank account for your child. Soon enough, they too will be facing the same challenges you did when it comes to finances. Don’t know where to begin? Central Federal has your back.
While Central Federal offers multiple savings accounts for you and your child, we believe that our Statement Savings is a great way to kick off your journey with us. This account can be opened for your child, in your name, before they are even born. To avoid services charges, just keep the minimal daily balance at $25. Being an interest bearing savings account, you will receive a disclosed annual percentage yield.
Smart Start Club Account
Another strategy is to open a savings account that you can transfer to your child when they’re old enough. The Smart Club Account allows newborns up to 18-year-olds to save up to $1,000 and earn more interest. As soon as one more penny is added to that $1,000, the account will take over the properties of a Statement Savings plan. Consider upgrading them to a checking account later with a debit card.
Premier Club Account
Does your child have an allowance? The Premier Club Account is the perfect way for you to pay them for their hard work around the house. Designate a quarterly, semi-annual, or annual payment date so that they can’t spend it right away. Deposit the money whenever you want and receive it all back on the date you decide – except for $10 to keep the account open.
Money Market Deposit Account
The Money Market Deposit Account is for those who prefer their child to have less access to their savings. As another interest bearing savings account, another main difference here is the limited check writing. You must also keep $250 saved up to collect the annual percentage yield. $1,000 is the minimum amount to avoid service charges, assisting you in keeping a decent stockpile for your child’s future.
Certificate of Deposit (CD)
Through Central Federal, you can open a CD with a $500 investment. Choose to save over the course of one month, five years, or beyond. Look into including a fixed or variable rate depending on your goals as well. This method of saving’s purpose is to prevent anyone from taking their money out too soon. Saving is difficult so lock what you can afford away in a CD.
Health Savings Account (HSA)
Medical expenses shouldn’t weigh you down when it comes to your child. Open a tax-exempt HSA in order to specifically cover the costs of anything related to healthcare. $10 is all it takes to let a disclosed annual percentage yield accumulate.
With so many ways to open a bank account for your child at Central Federal, what are you waiting for? Call us at (573) 364-1024 or stop by our location at 210 West 10th Street to chat with us today. Don’t forget about our Choice Checking and Choice Checking Plus accounts, too!