To help your kids learn more about money and finance.Why do you want your child to have a savings account? There are several good reasons. What Are Your Goals for Your Child’s Savings Account? So unless you have a particular reason for choosing a custodial account, you may want to go with a typical savings account. Yet using this type of account may complicate your taxes. If you open a custodial account, also referred to as a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account, money in the account is treated as a gifted asset your child fully owns funds cannot be accessed until the child turns 18. If you open a savings account, you and your child will have joint ownership of the account, and your child will be able to access the funds (with you, the parent, being able to monitor account activity). There are typically two types of accounts you can open for your child: a savings account or a custodial account, and the difference is important. Should You Choose a Kids’ Savings Account or a Custodial Account? Remember that perks vary by bank, so it pays to ask about the specific kid-centric features offered. Mobile apps so kids can easily view their accounts.Online learning tools to boost a child’s financial education.Unlike regular savings accounts, children’s savings accounts often come with additional perks such as: A kids’ savings account is designed for kids under age 18: The child and a parent or guardian act as joint account holders.
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