How to Open a Youth Savings Account and the Benefits
Posted: November 2, 2023 in Savings, Achieving Financial Goals
In a national poll, young adults face high debt and rank among the lowest in financial literacy. Developing skills around financial wellness at an early age is a marker for successful parenting and, eventually, successful adults. Opening a youth savings account is an excellent first step for getting children started on the path to financial success.
What is a Youth Savings Account?
A youth savings account is a savings account that is opened in a minor’s name and has a parent or guardian listed as a joint owner.
Benefits of a Youth Savings Account
Apart from instilling sound financial habits in the younger generation, here are some benefits of opening youth savings account for your child or grandchild.
Earn Dividends
Youth savings accounts typically earn dividends, and if you set up automated payments, you may also be eligible for further incentives. A notable example is a ProFed Great Start Savings Account, which offers a bonus of $25 when you set up a monthly direct deposit or auto-transfer of at least $5 during the first 30 days of account activation. Keep that deposit going all year long and receive a $5 anniversary reward. Similar to other saving products, ProFed's Great Start Saving Accounts earn dividends on deposits, and benefit from higher dividends with a 12-Month EZ Saver Certificate.
Low to Zero Fees
Little to no fees are collected on youth saving accounts at credit unions. It's important to look out for all the possible fees associated when opening an account including monthly maintenance fees, per transaction/withdrawal fees, ATM card replacement fees, and paper statement fees.
How to Open a Youth Savings Account with ProFed
It is simple. The majority of accounts at ProFed can be opened in about five minutes. When opening a youth savings account, here's the documentation you'll need to get started.
The minor will need to provide:
- Name
- Social security number
- Address
- Date of birth
The joint owner will need to provide:
- Name
- Social security number
- Address
- Date of birth
- Identification which includes a driver’s license or US passport, state identification, resident alien card, or military identification.
- Employment including employer's name and phone number
Next, head to ProFed’s Great Start Savings page and click Join Now. Here you will start filling in the necessary information listed below.
- Set up your initial deposit amount.
- Fill in your account information:
- Name
- Date of birth
- Address
- Social security number or identification number
- Employment information
After reviewing that all your information is correct, you will fund your account, sign up for Digital Banking and set up your automatic deposit! Check out our video tutorials to help you get started with ProFed Digital Banking.
Start Saving Today for your Child’s Future with a Great Start Savings Account
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