Do you want to teach your children about saving money? If their piggy banks are full, consider opening a savings account so they can put their money in a safe place and watch it grow over time.
Keep reading for a detailed explanation about how to open and manage a savings account for kids.
While some minors (individuals who are younger than 18 years of age) may be able to open a savings account at some banks, minors can’t open and manage a savings account with Synchrony Bank.
Parents who want to transfer assets to or deposit money for their child must do so in the form of a custodial account.
A custodial account is a savings account that an adult controls for a minor. In most states, the funds are held until the minor turns 21.
There are two types of custodial accounts: the Uniform Transfers to Minors Act (UTMA) and the Uniform Gift to Minors Act (UGMA). These are essentially the same, except an UTMA can hold more types of property and has more flexible rules than the UGMA. The vast majority of states allow for UTMA accounts.
To set up a custodial account, a custodian must be appointed for the minor and provide his or her name and social security number.
Any money in this account will belong to the minor, but is controlled by the custodian until the minor reaches the age of 21 (this age requirement may vary by state).
There are many benefits to setting up this type of savings account for kids, including:
With these benefits, it’s important to note that any deposit amount over $14,000 is subject to a gift tax.
If you wish to open a savings account to start saving money for your child, here is some information that’s typically required:
Once you open a savings account for your child, encourage him or her to learn about the saving process.
If you can get your kids excited about saving, then you can put them on the right path to a better financial future.
Opening an account to save for your child’s future is easier than you might think with Synchrony Bank.
Our deposit products are secure and FDIC-insured up to $250,000, per depositor for each ownership category. Additionally, our online banking tools make managing your finances easier than ever.
Now that you know how to open a savings account, call 844-345-5789 or visit Synchrony Bank online.
+National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. High Yield Savings Rates: Average APYs are based on High Yield Savings Accounts of $10,000. Money Market Account Rates: Average APYs are based on Money Market Accounts of $10,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 06/21/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.