Before my children were born (around the time of my baby shower), I began to wonder what I should do with all of the monetary gifts that I had received on behalf of my children. Should I put them into a secondary savings account under my name until they were old enough? Or, should I open up a bank account in my children’s names and deposit the money directly to them?
While both are good options for parents wanting to keep close tabs on their children’s money while they are still minors, I am happy to say that I went with the latter and opened up an account in each of their names to deposit any cash or checks received on birthdays, special occasions and holidays as they grow up.
After my children were born, I went ahead and set them both up with a Bank of America Child Savings Account, since I was already a BofA member and to try to keep things as easy as possible for myself. It has actually turned out to be quite a gem in terms of ease of access to the accounts and it will be a great teaching tool to bring my children on visits to any of their 4,600 brick-and-mortar bank locations so they can glean as much about banking and saving before they turn 18 years old.
The BofA Child Savings account currently has a 0.03% APY, which is certainly lower than the national average of 0.10%. But the upside is that the account is free, and it can easily be opened for children younger than 18 at a branch with a $25 minimum deposit.
What is A Bank Of America Child Savings Account?
A Bank of America Child Savings Account is an account-type specifically offered for children under the age of 18. The savings account is jointly owned between a parent and minor child. Once the child turns 18 years old, the account is automatically converted into a Rewards Savings account in the child’s name.
There are no associated maintenance fees if the account owner is 18 years old or under, and if you maintain a $300 account balance, the Withdrawal Limit Fee will be waived.
The best part is that the account earns interest (0.03% APY as of May 2019), and you can also opt to make automatic transfers to your child’s saving account from your own checking account to help build their finances even further.
What Are Bank Of America Child Savings Account Fees?
As of May 2019, there is no maintenance fee associated with the Bank of America Child Savings Account.
If you maintain a daily balance of at least $300, you can also waive the withdrawal limit fee – which is currently $1.00 for each withdrawal or transfer within statement cycle over 6.
Here is a list of additional fees that may apply to a Bank of America Child Savings Account:
|Monthly Maintenance Fee||$0|
|Minimum Opening Deposit||$25|
|Overdraft Item Fee||$35|
|Withdrawal Limit Fee||$1|
|Returned Item Fee||$35|
|Overdraft Protection Transfer Fee||$12|
|Non-Bank of America ATMs||$2.50|
|Paper Statement Copies||$5|
|Deposited Item Returned||$12|
|Check-Cashing Fee||$8 per check for amounts greater than $50|
Note: When the child reaches 18 and the account is transitioned into a BofA Rewards Savings Account – there are fees that may apply.
What Are The Benefits Of A Bank Of America Child Savings Account?
- Jointly owned by a parent/guardian until the child reaches 18
- Interest bearing account
- Debit Chip Card
- Online and mobile banking
- Access to 4,600 branch locations and over 15,900 ATMs
- Access to BofA’s savings calculator / money management analysis tools
- Minor has access to funds before they turn 18
- Ability to make automatic transfers to help build savings
- $0 daily minimum balance requirement
What Are The Disadvantages Of A Bank Of America Child Savings Account?
- Low APY of 0.03%
- Minimum opening deposit required – Currently, the minimum is $25
- Limit of 6 withdrawals or outgoing transfers per month
- Variable interest rate
Is A Bank Of America Child Savings Account FDIC-Insured?
Yes. Bank of America child savings accounts are provided by Bank of America, N.A.
Bank of America is a FDIC member, which means that funds deposited in a Bank of America child savings account is insured up to the maximum allowed by law.
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions. The FDIC insures deposits according to ownership category (such as individual, joint or accounts with beneficiaries). The current maximum amount is $250,000 per depositor, per insured bank, for each account ownership category.
How Do You Open A Bank Of America Child Savings Account?
You will need to open the account in both of your names (since children under the age of 18 are not legally allowed to sign documents). When the child turns 18, you can go to the bank and remove your name permanently. While your child is still a minor, you will control the account and have the option to make deposits, withdrawals, or (if necessary) close the account.
Here is a list of items you will need to open a child savings account:
- Your child’s Social Security number and date of birth
- Parent/ Guardian picture identification (such as your driver’s license)
- Personal details such as your address, email address, and date of birth
- Your initial deposit, including cash or checks
Since your child won’t be able to open the account without a parent or guardian present, show up ready to help. Also be prepared to sign any required legal documents on your child’s behalf.
They may also run a credit check on the parent/guardian before the account can be set up.
How To Access A Bank of America Child Savings Account:
Online: Login with your username and password on https://www.bankofamerica.com/
Phone: You can access your accounts using Bank of America’s automated Banking by Phone service 24 hours a day, seven days a week, 365 days a year. Check your balance, transfer money between accounts, verify recent deposits and withdrawals and find out what checks have recently posted.
To bank by phone, call 800.432.1000.
ATM: Access your account at thousands of Bank of America ATMs and financial centers. Make withdrawals, deposits, transfers and get balance inquiries at ATMs or financial centers displaying the Bank of America name and logo.
Find the nearest Bank of America ATM and financial center here.
Mail: Use these addresses for mailing deposits to Bank of America.
|Deposits by Mail Only Address||Overnight or FedEx Only Address|
|PO Box 105576
Atlanta, GA 30348-5576
|6000 Feldwood Road
College Park, GA 30349-3652
Do not mail cash.
Although the APY is fairly low, the Bank of America Child Savings Accounts can be great starter-savings accounts for your kids to help grow their finances for the future and to teach them about money management. And, since BofA has such a large network, you’ll be able to show them how to manage their money via online/mobile, through visiting one of their 4,600 branches as well as via ATM (BofA currently has almost 16,000 of them nationwide!).
Bank of America is the second largest banking and financial services corporation in the United States. It was formed when NationsBank acquired BankAmerica in 1998. Bank of America is currently headquartered in Charlotte, North Carolina and currently operates 4,600 retail financial centers & approximately 15,900 automated teller machines within it’s network. The main products offered through BofA are consumer banking, corporate banking, insurance, investment banking, mortgage loans, private banking, private equity, wealth management and credit cards. Revenue as of 2018 is estimated a $91.24 billion dollars.
In the aftermath of the 2008 financial crisis, Kate found herself surrounded by friends and family who were concerned about the safety of their money and needed help navigating banks and bank accounts. Her desire to share her knowledge led to the development of BankProfessor.com