Thinking about opening a Bank of America Child Savings Account?
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 wait and just open up a bank account in my children’s names after they are born 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 a Bank of America Child Savings account in each of their names. This way, I can very easily deposit any cash or checks received on their birthdays, special occasions and holidays as they grow up. And above all, it should prove to be a great teaching tool for them to glean as much knowledge about banking and saving before they turn 18 years old, as I am able to to bring my children on visits to any of their 4,600 brick-and-mortar bank locations to show them how the banking world really works.
One of the only downsides I see in opening this account is that a BofA Child Savings account currently only has a 0.01% APY, which is certainly lower than the national average. But the upside is that the account is free, and it can easily be opened for children younger than 18 at a branch with just a $25 minimum deposit.
What is A Bank Of America Child Savings Account?
A Bank of America Child Savings Account is specifically offered for children under the age of 18. The parent and minor child both own the account. However, once the child turns 18 years old, the account is automatically converted into a Rewards Savings account in the child’s name.
Furthermore, 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 also be waived.
The best part is that the account earns interest (0.01% APY as of April 2021), 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?
There are currently no maintenance fees associated with the Bank of America Child Savings Account.
However, there is a withdrawal limit fee.
But, if you maintain a daily balance of at least $300, you can 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 Advantages?
In this section, we’ll discuss the advantages 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?
In this section, we’ll discuss the disadvantages of a Bank of America Child Savings Account:
- Low APY of 0.01%
- 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 is a FDIC member, which means that funds deposited in a Bank of America child savings account are 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?
The account will be opened in both the parent and child’s name (since children under the age of 18 are not legally allowed to sign documents). In other words, 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.
When the child turns 18, you can go to the bank and remove your name permanently.
Here is a list of items you will need to open a child savings account:
- Firstly, your child’s Social Security number and date of birth
- Secondly, Parent/ Guardian picture identification (such as your driver’s license)
- Thirdly, Personal details such as your address, email address, and date of birth
- Lastly, 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. In other words, be prepared to sign any required legal documents on your child’s behalf.
NOTE: Before the account can be set up, they may also run a credit check on the parent/guardian.
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. Through the automated service you can check your balance and transfer money between accounts, in addition to verifying recent deposits and withdrawals, as well as finding out what checks have recently posted, for instance.
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.
How To Deposit A Check For A Minor Child At Bank of America
If your minor child receives a check made out to them, you can easily deposit it into their account via mobile banking or by visiting any one of Bank of America’s branch locations.
In order to deposit the check, you’ll need to complete the following steps:
On the BACK of the check:
- Print your child’s name – and next to their name, add in parenthesis (Minor)
- Underneath your child’s printed name, sign your name. Next to your signature, add your relationship to the child – such as (PARENT/GUARDIAN)
- and finally, underneath your signature write “For deposit only at Bank of America“
It should end up looking something like this:
Child’s Name (Minor)
Parent’s Signature (Parent)
For deposit only at Bank of America
In conclusion, 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. Furthermore, 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!).
Banking Health Score
There are many banks and financial institutions to choose from and it is important to be able to distinguish the good from the bad. Our team reviews each bank on a monthly basis to ensure that the information we share is as up to date as possible. Not only is the financial strength of a company important, but also how well their customer service is rated by actual customers like you.
We also believe that in order to determine how well a bank is functioning, that several sources should be utilized to compare one bank to another.
That said, here is a list of scores from trusted sources that you should consider before making your banking decisions.
Bank of America – Bank Health Scores
Bank Professor’s Bank Score = ⭐⭐⭐⭐ 4 stars out of 5 stars
- Bankrate’s Safe and Sound Rating: 2.4 out of 5 stars
- BauerFinancial Star Rating: 5 out of 5 stars
- BankTracker Troubled Asset Ratio: 3.17
- FDIC: Actively insured
More about the rating system:
- BankProfessor rates banks monthly on a one-to-five scale based on revenue, net income, total assets, total equity, capital ratio, customer reviews, rating agency scores, profitability, and troubled asset ratio.
- Bankrate.com ranks banks and credit unions quarterly on a one- to five-star system, with one being the lowest rating and five the highest. The rating is given based on regulatory filings about the financial institution’s capital adequacy, asset quality, profitability and level of cash available. It compares those levels with peer and industry norms.
- BauerFinancial offers a similar star rating system as Bankrate (a one- to five-star system, with one being the lowest rating and five the highest).
- BankTracker was created by the Investigative Reporting Workshop of American University and MSNBC.com. They determine a bank’s troubled asset ratio. According to the site, the ratio is “a strong indicator of severe stress inside a bank because it shows the bank’s ability to withstand loan losses”. In other words, the higher the ratio, the more “trouble” they are in.
How to Close A Child Savings Account at Bank Of America
If you wish to close your child’s savings account with Bank of America, you will first need to make sure that all pending transactions have cleared before you start transferring any money out of the account. Then, you can contact the bank at 1-844-375-7027 or send correspondence via mail to Bank of America PO Box 25118 Tampa, FL 33622 to request account closure.
You can also login to your account online and send a secure message to Bank of America’s customer service department to request account closure.
Alternatively, you can visit a local branch in-person.
Typically account closure requests will need to be made in writing (even if you call first). When you speak with a customer service representative, make sure to ask if they prefer written requests to be received via standard mail, e-mail or fax.
You should receive a response or confirmation of account closure within a few business days.
Bank of America is the second largest banking and financial services corporation in the United States. In 1998, NationsBank acquired BankAmerica thus forming Bank of America. BofA is currently headquartered in Charlotte, North Carolina and 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 also credit cards. Bank of America’s revenue (as of 2018) is currently estimated to be $91.24 billion.
Still researching a new account? Check out the latest savings account rates here.