Children's bank accounts - how to choose?

[millyskate]

Hi collective brain of FSU,

I have to prepare a last-minute presentation for a job interview, related to the fascinating topic of choosing a bank account for a child. If you've ever had to do such a thing, could you please help me out by letting me know what criteria was important?
Did you open the account for your own child or your grandchild? Did you consider general savings accounts where you could have the account in your join names, but remove yours when the child turned 18? Or only accounts designed specifically for children?

What perks influenced you?

I have created the anonymous survey below if any of you have a couple of minutes to answer it... Any pointers would be much appreciated
https://www.surveymonkey.co.uk/r/GZ8KTKG

 

[MacMadame]

I wonder how these accounts work in different countries. In the US, you can open a custodial account for your kid and it's in both your names and it's free. It's usually a savings account. That's why I did for my daughter. Then when they got to HS, they opened checking accounts which were free and our names weren't on them but they were connected to our accounts somehow. For example, when I log into my account, I see my kid's checking account too. But she could change it to a regular account without me. She couldn't do anything to the custodial account without me.

 

[TheGirlCanSkate]

We got them savings accounts right away and I have a direct deposit into them automatically that I manage online. When they were/are 18, the bank converts them into checking/savings accounts.

 

[madm]

I opened joint checking and savings accounts for each child at age 16. My children started working at age 16 (entry level jobs with few hours), so they needed a place to deposit their earnings. These accounts served as teaching tools to learn how to manage money, write a proper check, not spend more than you have, and save a portion of one's earnings. My father taught me the value of a dollar, and that was my goal with my kids. To this day, they are frugal and have no debt.

Years later, I have remained on these accounts with my kids approval, since they work internationally or have travel jobs. This allows me to take care of occasional money transfers, deposits, bill payments and wire transfers if needed. My kids also have other checking accounts with different banks, so I do not see all of their finances. I think the first accounts they had were designed for young savers with no fees, but when they turned 18, they transitioned over to regular accounts. Banks are not the greatest place to invest money - for that, I put their nest egg into mutual funds at Schwab.

 

[Habs]

Both of my kids have very basic savings accounts in their own names, but with authority for transactions only for myself and Mr. Habs (they're so little, that part doesn't matter). We just needed a place for piggy bank money, birthday & Christmas money. When they're older, we'll change the accounts to something they'll be able to use.

 

[maatTheViking]

My parent's opened a bank account for the kids in Denmark, it is a 'grandparent account'. The kids names are on it, only, but it is easy to deposit money into it. It is a savings account, though the dividend is low, but at least it is not non-existent.
I think the kids can take money out themselves, but we are not going to tell them until they are teens. The idea is that it will be nice for them to have extra money in Denmark once they are old enough to travel there by themselves.

When I was growing up I had a bank account in my own name, and no custodians. It was NOT a savings account, this was an account for 'spending money'. I also had a savings account I could not access until I was 18.

For our kids, they don't have a bank account. They have money, but they have it in cash. It is part of a strategy to try and make them understand money a little, since we pay for everything with cards.

They also have an investment account each (for college) and we are custodians, but it is still in their name - the main reason for this is that if we get sued for some crazy liability thing (and our insurance is not enough somehow), no one can take this money.