Opening a Youth Savings Account

YOUTH SAVINGS ACCOUNT | It's never too early to start saving.

And if you’re a parent or legal guardian, it’d be worth your while to help instill these habits in your children sooner rather than later. Getting them ready now will help to keep them in a good place as they move along in life. We can’t always be there to protect them, but we can give them tools they need to cover themselves. Take Youth Savings Accounts, for example.

These are commonly referred to as minor accounts. This puts the account in the child’s name, with the added coverage of the parent or guardian’s name being on the account as well. While withdrawals can be made, usually the adult has to sign off on them first. You can also set the circumstances so that you’ll be notified of any actions taken in regards to the account. This allows you to keep a closer watch on everything.

Custodial Accounts & 529 Plans

Next, there are what’s known as custodial accounts. These youth savings accounts keeps the child’s name off of the account. But, it’s understood that the parent or guardian is using it for the express purpose of acting on their child’s behalf. Everything in the account is recognized as belonging to the child. Any action taken by the adult, including withdrawals, must go towards something specifically for the minor. Then, once the child reaches adult age, the account becomes theirs in totality.

Lastly, we have what are known as 529 plans. These are savings accounts that function solely in the interest of the child’s future education. These include fees associated with going to and staying in college. They also come with tax incentives for the adult.

Affinity Bank

At Affinity Bank, we offer a wide selection of banking services, including savings accounts. Browse our site to learn a bit more about the particulars of each. And for any more questions, feel free to contact us today.