It can be quite difficult trying to figure out what a good gift for grandchildren would be and that's why savings accounts are a great idea.
It is hard to know exactly what kind of gift a young child or developing teen would really want and a savings account is appropriate for any age.
Opening savings accounts for grandchildren
Not only is a savings account a practical idea but it can be fun too. You can wrap up the bank book, present it to the child, and start teaching him the fundamentals of saving. This is a good chance to have some bonding time as a grandparent since teaching children about the possibilities of saving can be very enjoyable.
Savings Accounts Comparison*
*Some of the accounts below can be opened as trusts for your grandkids. Read the terms and conditions for these accounts before deciding to apply for any.Rates last updated July 28th, 2014.
The account purpose
Depending on the age, you may not want to explain the purpose of the savings accounts too much to a young child. If you are starting a fund for college, helping to build up a down payment for a first home or for a new car, the child may not understand the meaning of a long-term effort. Children live very much in the present and want to think more in terms of candy and ponies. A good way to present a future idea is to let them know that the money will be there when they need it when they get older for the things they want then.
As your grandchildren get older, you'll be able to discuss money as a long-term goal and they will be very thankful that you took the time and energy to open up a savings account when they were younger. This account will open a brand-new future for your grandchildren and even if they don't understand it at a young age, they will soon.
Access to the savings account
You may want to consider opening savings accounts under the parents name. This way, the parent can have access to the account any time they want and add money to the account. The account can grow at a faster rate this way and give a good head start for savings.
You can open a joint account with your name and the parents name listed. You'll have easy access to the account as well so that you can deposit money into the account as future gifts, or just any time you have some extra money that you would like to contribute.
If you are really worried about making the child happy on his birthday or Christmas and feel that a savings account just won't cut it, you can open up an account and give your grandchild a little bit of candy to go along with it. This way, the child will be thrilled to have a small gift along with a larger gift that he really doesn't understand.
Opening savings accounts for grandchildren is a wonderful idea that shows you really care about the child's future. In this day and age it is important to help children get lined up with their future finances as early as possible and what better way to do it than by opening an account for them.