What is a kids club savings account?

A kids club savings account is a type of savings account that many banks offer in order to encourage parents to teach their children how to bank.  It is a great idea for parents to start teaching their children about money management and smart savings at an early age.  Parents need to teach their children about high interest rate savings.

Are kids club savings accounts really good investment vehicles?  Well, it depends what you are looking for.  Like most bank savings accounts, few banks offer high interest banking kids club savings accounts.  Therefore, if you are looking for a high yield savings account these kids savings accounts may not be right for you.

However, if you just want to teach your kids about the importance of saving money and they are not going to be saving a lot of money, a kids clubs savings account can be a nice option.  These kids accounts typically have very low minimum balances.  Additionally, you can usually deposit any amount of money not worrying about a minimum deposit amount.

So if you a kids clubs saving account meets your needs, they can be a nice investment option to teach you kids about banking.  However, if you can find a high yield savings account that also meets your needs for your child’s savings, you might as well earn the highest interest rate your can.