ING Custodial Accounts for My Kids

I have just opened up some ING DIRECT custodial accounts for my 4 minor children. Although there are online banks that are paying higher interest, none are offering a $25 bonus for opening the account. I have put $250 into each or their accounts to qualify them for the $25 but plan to withdraw the $250 after the 30 days required to qualify.

I choose ING DIRECT because the rates were competitive (especially if you factor in the $25 account opening bonus) plus there are no fees or service charges. After I remove the $250 in 30 days, ING does not require any kind of minimum balance. Also, I can access the account 24-hours a day over the internet and almost half the day by phone - even on weekends! And, of course, ING Direct accounts are FDIC insured up to $100,000 per depositor. It will be a while before we get close to the top limit.

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The kids each get $10 on the 5th and 20th of each month. It is their ‘payday’. 10% gets set aside for a tithe to the church and 20% is to go to long term savings. This leaves them $7.00 to ‘manage’. They can spend it on pop at the gas station, candy, or, put it aside to buy the newest Lego creation.

Their ING accounts is where we will put the $2 ‘long term savings money’. I can transfer the $2 per kid twice a month and let them watch their savings grow. I am hoping that by getting accustomed to saving 20% of their income they will be farther ahead than I am when they approach retirement.