Update: ING Direct is now Capital One 360. The good news is that they still have this great savings account option for children. Check out details here.
Teaching children about money can be done in a variety of ways. Some parents like the idea of an allowance, where kids can earn money every week by taking care of household chores and duties. Other parents provide their kids with a prepaid credit card and provide them a certain amount of money to spend every month. No matter which way you get your child started with the concept of money, the earlier you begin the better.
ING Direct happens to feel the same way, and earlier this week, they launched an online savings account designed specially for kids. The name of the new account is Orange4Kids and ING Direct has this account focused on bringing adults and children together to learn about personal finance. Not only will the money saved earn a respectable 1.00% APY, account holders will receive the following benefits:
- FDIC insurance of up to $250,000 for each depositor
- No monthly fees and no account minimums to keep
- An interactive website which teaches kids more about money found at www.OrangeKids.com
Even though this is a savings account designed for kids, anything that has to do with transferring money in and out of the account can only be done by the registered adult on the account. Outside of adding and withdrawing funds to the account, youngsters can pretty much do everything else, including:
- Check their balance
- Change their personal info
- Change their PIN
- Change their account nickname
- Create a personalized ‘Saver ID’
- Download their account history, tax forms and e-Statements
The Orange4Kids online savings account from ING Direct is perfect to get kids thinking about how to save money early. There are other options in terms on online savings accounts, however there’s nothing more developed for kids than Orange4Kids.
Published or updated May 10, 2013.