What is a child savings account?
The simple answer is that a child savings account is an account set up for your child. In this account you can deposit spare change, birthday money and other loose funds to accrue some interest throughout their childhood. This teaches them the age old lesson of a penny saved, is a penny earned.
But the real answer runs much deeper than that.
A gateway to education.
Research suggests that a child savings account greatly increases the odds that a child from lower to middle income will attendand even graduatefrom college. The research, conducted by the Center for Social Development at Washington University in St. Louis, shows that children with savings accounts containing as little as $1 are seven times more likely to attend college and four times as likely to graduate college as children with no savings accounts.
A pathway to financial independence.
Additional research conducted by the University of Kansas also finds that children with savings accounts are four times more likely to invest in the stock market in adulthood.
So, while the return on a child savings account might seem minimal on the surface, the benefits can pay big dividends in the long run. A child savings account is a great way to teach your son or daughter financial literacy and responsibility. First Bank can help.
With just a $10 initial deposit, customers under the age of 18 can open a MyFirst Savings account and get started on a lesson with a lifelong payoff. A MyFirst Savings account comes with no monthly maintenance charge and no minimum balance needed to earn interest as long as certain requirements are met. Our account also comes with eStatements or paper statements, online and mobile banking and two withdrawals per month free of First Bank fees.
Learn more about our child savings account and guide your child to a brighter future with First Bank.
While First Bank does not charge for mobile banking, your mobile carriers message and data rates may apply. 2. Withdrawal fee of $2 each after the first two during the month. Federal regulations limit withdrawals of preauthorized transfers to two (2) per month, including checks, drafts, online transfers, telephone transfers and debit card purchases. You may conduct an unlimited number of withdrawals at the ATM, in person at a branch, or by mail when the check is mailed to you.