Savings account?

Question

Can anyone tell me of a good savings account for a 16 year old? thanks.

Answer 1

Since he's a minor, he'll need a custodian account until he's 18. One of his parents will need to be on the account.



Talk to the bank you do business with. They'll help you figure out what is the best account for him. Look at Money Market accounts. They usually pay a higher interest rate. And you may need to check a couple different banks or savings institutions to get the best rate. Most banks have websites so you may be able to do a lot of the legwork of checking out their current interest rates on line.

Answer 2

I very highly recommend a credit union: they have the best customer service anywhere, usually the best rates of brick-and-mortar banks, and they usually take an interest in educating their customer/owners (you!) about all sorts of banking and financial stuff, which could be useful for a 16 year-old just starting out in the world. My CU has special accounts for teens and college students with perks like free checking and debit cards to help young people get started. Online banks offer ~ 5% right now, though the rate has gone as high as 7% and as low as 2%, so there is no guarantee of that in the future. You might not want one of these if you are a person who goes to the bank every day to withdraw $10 and need all of your money instantly on demand, but if you are willing to wait up to several days for your deposits to be sent and withdrawn through the internet, it can be a good return. DO YOUR HOMEWORK FIRST before trying this. Even if you do open an online savings account, you have to link it to another, thus the credit union. But they are all (the real ones) FDIC insured so it is a safe investment if you've got money that you're not going to need for a while, the main setback is the sending and receiving times for you deposits and withdrawals. For the credit union, you can check your local Yellow Pages or search the internet for local CU's.



Some online banks are HBSC, which is offering a 6% introductory rate til May, I think, Emigrant Direct, and Amtrust Direct.



Good luck!

Answer 3

Forget about your typical bank passbook savings account. The average interest rate is less than one percent. And in the unlikely event that he or she earns enough interest to have the bank report it, he'll have to pay regular income tax rates even on that amount.



There are high interest rate accounts with small or no minimums online, like www.ingdirect.com or www.hsbc.com. Or you could put his money into a local savings account until you have enough to invest in a certificate of deposit (CD). But you'll find that the online banks pay rates almost as high as most CDs available at your local bank, and the online accounts don't lock up the money. Interest earned from the online banks and from CD's are subject to taxes.



If saving for the very long term, consider a Roth IRA. You can setup an account at Vanguard or Fidelity for relatively small minimums. And with no taxes on earnings, the compounded return will grow enormously by the time he or she retires. Money in a Roth can also be pulled out (with some taxes or fees) for education or first time home purchases. Money put into a Roth can be pulled out at any time without penalty (but not the earnings from that money).

Answer 4

Since you are 16, you will need a parent to cosign on an account for you. A good one to look into is on this website:

www.earlyearners.com.

It is part of HSBC bank. It has one of the highest interest rates out there right now (6% vs. 3-5% at your local bank) and you can access the account with an ATM card they issue to you if needed. They also don't require a minimum startup amount, monthly balances and minimum deposits like most local banks in your area will probably want.

Answer 5

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Answer 6

Try looking on www.moneysupermarket.com its the king of price comparison sites and you can compare savings accounts in the money section.



On a personal level, I have just opened an account with www.icesave.co.uk. It is a high interest savings account (5.7%) and you can also get at your money instantly if you need it.

Answer 7

Halifax Instant Saver

http://www.halifax.co.uk/savings/instantsaver.asp

probably looks the best bet



Halifax Liquid Gold

http://www.halifax.co.uk/savings/liquidgold.asp

though interest ain't as good as it used to be...... had one of these since about 1988



Both these do special rates of interest for savers under 21yrs old



Not sure if you're old enough to open a Halifax variable rate websaver (you can always try... if not, maybe when you're older)

http://www.halifax.co.uk/savings/variablewebsaver.asp



For further advice on Savings accounts, check out:

http://www.fool.co.uk/savings/information/easy-access-savings-accounts.aspx

http://www.fool.co.uk/savings/information/how-to-save-more.aspx

Answer 8

put some of your cash in a banks saving account some in an isa and some in something else like premium bonds from the post ofice then you have your money spread around so the risk of loosing money through the companies going bankrupt is spread around

Answer 9

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Answer 10

At 16, you will still need an adult over 18 to open it for you.

Answer 11

Birmingham & midshires online issue 6 (5.6% gross)



NS&I direct ISA (5.8%)

Answer 12

Just go to a bank and open one make sure you have the money to open it with.

Answer 13

Mine.

Answer 14

alliance & leicester

Answer 15

icicibank.co.uk.