ING Direct unveiled a new savings product designed to help encourage kids to learn the benefits of better financial habits early on. The Kids Savings Account isn’t much different from ING Direct’s standard Orange Savings Account for adults. Even today, Orange Savings Accounts be jointly owned by a minor if the joint owner is over the age of 18, but this new product takes the concept of a jointly-owned account and adds two things:
- Kids will be limited from transferring money without the assistance of the account’s adult joint owner.
- The account will provide easy access to materials from ING Direct designed to help parents teach kids about managing money properly, like Planet Orange.
- Young account owners will receive emails with statement reminders and can customize the account by assigning an account nickname and a Saver’s ID.
An adult can initiate an automated transfer to the Kids Savings Account to provide a regular allowance. The adult included on the Kids Savings Account does not need to be the child’s parent; any relative or other adult can serve in this role. When the young account owner reaches the age of 18, the account converts to a regular jointly-owned Orange Savings Account, and both joint owners will have full capabilities for transferring money to and from the accounts.
The Kids Savings Account earns the same interest rate as the Orange Savings Account. For current customers of ING Direct with kids, the account seems like an interesting way to approach the topic of savings.
Updated May 20, 2013 and originally published May 13, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.