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ING Direct Kids Savings Account

This article was written by in Financial Literacy, Saving. 16 comments.

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.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 16 comments… read them below or add one }

avatar Ceecee

Good idea to introduce kids to saving.

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avatar Ken

Too bad ING Direct doesn’t offer a really good rate on this Kids savings account for up to a $500 balance or some small balance. That has been common at several credit unions. It helps make kids appreciate interest. It’s hard to appreciate interest when the rate is only 1.00%.

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avatar Amy Saves

I know! Remember when it was 4%? 1% is NOTHING.

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avatar Matt Bell

For now, since our kids are pretty young, I’d prefer to stick with a bank where our kids can go there in person, hand over some money, and get their passbook updated. I think it’s important for young kids to have that more tangible experience with money. As they get a little older, though, I could see switching to an online bank. At some point, they’ll understand the benefits of the higher interest rates offered by online banks.

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avatar skylog

this is a very good point matt, i had not really thought about the in-person aspect. i think that would make the whole learning process, perhaps not easier, but more real. as for your children, who knows what banking will look like in 10 years or so…

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avatar shellye

I agree with you; I have three teenagers now, and they have no interest in going to a bank and getting a passport stamped. Now it’s all about bringing up their account info on their phone and checking their balance. It’s hard to compete with technology when trying to teach a kid the value of working hard to build up a savings account.

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avatar DonnaFreedman

I’m going to visit my niece and great-nephews this summer. This might be a good way to get all three of them planning some goals — a down payment on a home for her, and college for them. Teachable moments, anyone?

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avatar qixx

We use just a regular Orange Savings account for our not-quite-two year old. I don’t see the point of the Kids Savings account. The only bonus i see as possibly worth it would be the teaching materials once i have some older kids. Is there something else i’m missing?

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avatar TakeitEZ

I am looking forward to teaching my son how to handle his finances. I want to make sure he avoids the many mistakes I made with money,

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avatar Stephanie PTY

I could see this if they allowed you unlimited multiple accounts, like the “adult” version of ING does. I think it would be useful for a kid if you could set up the “Save,” “Spend,” “Charity,” etc. accounts, or even set up multiple accounts for multiple goals, “New Bike,” “Disneyworld Trip” so that kids have to make their own decisions about savings for multiple goals or purposes. Just my 2 cents, though!

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avatar Luke Landes

With the Kids Savings Account, you can have multiple sub-accounts, just like the regular Online Savings Account.

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avatar skylog

this is another positive step in teaching young people about finances, i will be sure to forward this to several people. each post about ING makes me wonder about ALLY and what the future holds.

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avatar Cejay

I would prefer a bank where the kids can walk through the door and get the full treatment. There is just something about a grownup fussing over them that they love. Then it turns saving money into an enjoyable experience. We used to take my niece, who lived with us, to the bank every Saturday then we went out for brunch. She loved it and to this day she will save money.

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avatar Ryan

When I was 16, I opened a joint account with my dad, but I seem to remember not being able to transfer money around. It was a major PITA. I had to use my dad’s login information until I turned 18.

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avatar 4hendricks

My 8 & 9 year old, love to take thier money to a local bank – they want to hand it to the teller, write out their deposit slips (with help) and watch the whole process. It makes them much more aware of money – money that you hand to the bank teller, you are saving and making money – money that you hand to the cashier at the store is gone forever so make sure that you like what you are buying. Plus the local bank gives them points for each dollar they save and they can turn the points in for prizes. My oldest demanded at 6 that they show her where they were going to keep her money. She was disappointed to see the vault – I think she thought there was going to be a giant pink piggy bank back there.

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avatar Kristina

I like the idea of the accounts for kids but like it better in a local brick bank where they can walk in and make their deposits and really learn about banking. I remember doing that for the first time when I was about 7 and it is a great, outstanding memory.

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