Well, I'll have a daughter in about 4-5 days (I'm being induced Wednesday).

I'm looking for a good savings account for her. I thought about the local CU, but I've been wondering recently if maybe ING or HSBC is a better choice. The initial deposit would be very small. ($25-50) I'd add a small amount every month until I could afford larger amounts. (I know... it doesn't sound like a lot, but every little bit means something.)

So, thoughts?

Are there any "risks" with using an online savings account? I know they say they're FDIC, and other people use them, so I'd assume they're fine.

Also, as long as she has a valid SS#, age shouldn't be an issue with these types of places, right?

Interested to see what those with more experience in banking than I have to say!

I have my son's savings acct with ING. You will need to do a joint account with her if you go with ING. Can't speak to HSBC.

Depending on DD's age this could be a teachable moment. For young kids consider opening a "kids savings" at your local bank or CU. Let them take thier money up to the counter and put it in the bank. The interest won't be as much as ING or other online account but the teachable moment is more valuable than a few dollars worth of interest.
One the kids get older then teach them about online savings accounts, when they become teenagers you can teach them about investing.

I agree with 54reg on this one. There's alot to be said for the traditional "passbook" savings. Since they aren't able to hold the money, they are able to hold the passbook and the trip to make deposits can be made into a fun experience.

I say do ING + Credit Union.

Keep like $100 in the CU account (or whatever the minimum is). Every month transfer anything over $100 to the ING.

Why keep it all at 1% interest when you can teach your daughter how to be savy and make her money do more for her?

I believe she said she will be induced on Wed, and thus the DD is not quite yet born.

I say stick with ING or any other high yield (or higher yield) account....She's too young to be taught anything at this point and you can showher the account when she gets older and possibly open another account it can be linked to w/ debit card if you want then..

I missed the part about not being born yet. I'd hold off on letting her know she has any money in a online account because it won't be real to her for quite some time. I'd keep the money you are saving for her and "her" savings separate. At age 2 or 3 consider doing a cookie jar or piggy bank savings, later moving up to the passbook account/online savings/investing etc. IMHO it's important she makes the majority of the contributions to her account.

BTW what will the money you are saving for her ultimately be used for?

I'm not sure yet... College, down payment on a car, a large gift...

If I have my way, she won't have to spend much on her own college education, or first car. I'll make her "save" the money, thinking she's the one buying the car, put that money into savings, and pay for as much as possible that I can. I know my parents would have done the same had they been financially stable enough to do so. I don't want her to have a "free ride" so to speak... but I want her to be comfortable.

I knew someone once... their parents made them "pay" for their car, rent every month they were in their house past 18, and maybe some college (can't quite remember). By the time that child moved out, all that money they thought had been put towards other things, was actually sitting in a bank account, waiting for them... it was used their "gift" from their parents as a down payment on a house. Interesting idea.

But really, I don't know for sure what it'll be used for yet... I have a few years to decide.

If the goals for the money are long term consider investing in a mutual fund instead of a savings account.

Open an ING, it's safe. When the $$ reaces some predetermined amount, invest that into a Mutual fund......repeat.
Make it automatic.
Get her a MoonJar. moonjar.com
Read and of David Bachs books to her at bedtime.
)

Robyn