What Is a Child Savings Account?

“What is a child savings account?”

In a child savings account, you can deposit spare change, birthday money and other loose funds to accrue some interest throughout their childhood. This teaches children the lesson of “a penny saved, is a penny earned.” Read on to learn more about a child savings account and how you can set one up with First Bank.

What Is a Child Savings Account?

A gateway to education.

Research suggests that a child savings account greatly increases the odds that a child from lower to middle income will attend—and even graduate—from college. The research, conducted by Prosperity Now in Washington, DC, shows that children with savings accounts are more likely to start planning for college early and consider themselves college bound.

A pathway to financial independence.

Additional research conducted by the University of Kansas finds that children with savings accounts are four times more likely to invest in the stock market in adulthood.

So, while the return on a child savings account might seem minimal on the surface, the benefits can pay big dividends in the long run. A child savings account is a great way to teach your son or daughter financial literacy and responsibility.

Open a Child Savings Account with First Bank

With just a $10 initial deposit, customers under the age of 18 can open a MyFirst Savings account and get started on a lesson with a lifelong payoff. A MyFirst Savings account comes with no monthly maintenance charge and no minimum balance needed. Interest is earned as long as certain requirements are met. Our account also comes with eStatements or paper statements, online and mobile banking* and two withdrawals per month free of First Bank fees.

Learn more about our child savings account and guide your child to a brighter future with First Bank.

*While First Bank does not charge for mobile banking, your mobile carrier’s message and data rates may apply. 2. Withdrawal fee of $2 each after the first two during the month. Federal regulations limit withdrawals of preauthorized transfers to two (2) per month, including checks, drafts, online transfers, telephone transfers and debit card purchases.

———

Prosperity Now: https://prosperitynow.org/blog/empirical-evidence-support-childrens-savings-accounts

Share:

You may be interested in...

a wolf in sheep's clothing works at a scam

Can You Spot a Scam? Can you spot a scam? Most people are confident that they can tell the difference between fact and fiction, but the truth is that it isn’t always easy to fend off fraud. Want to test your knowledge? Click through the scenario below and think about whether it’s a helpful notice from your bank or if it might be a scam. Read on to find out the answer! Is this your bank... or is it fraud? 1) Your phone rings. Caller ID shows the number as your local bank. 2) You pick up the phone. The caller addresses you by name and seems to be familiar with your bank account number, address, and transaction history. 3) They warn you of possible fraud on your account. The caller asks if you're familiar with several recent transactions and reassures you that they'll help you protect your account. 4) They ask you to confirm your identity. Before the caller can help, they ask you to verify your identity by sharing the last 4 digits of your debit card or a one-time passcode. So... what do you think? Is the person on the phone a cunning fraudster or an honest banker? How to fight fraud and find red flags In the scenario above, the call is probably a scam. But the caller’s familiarity with your personal details may cause you to drop your guard long enough for them to retrieve your Secure Access Code (SAC) or a one-time code texted to your phone. They may use that code to change the password of your bank account, letting them in and locking you out, or to add your card to their digital wallet, which lets them use your card to make unauthorized purchases. It’s important to know that First Bank will never ask you for information like a one-time passcode if we’re the ones reaching out to you. Here are some other common red flags to look out for… Keep an eye out for these common tricks: Unexpected calls or messages, even if they look official. If you get any kind of communication claiming to be from First Bank — or another trusted source — stop and think about whether it might be fraud before responding. Caller ID and emails are easily faked. Pressure to act fast. Scammers often create a false sense of urgency to keep you from calmly thinking things through. They may claim that your account is at risk or that you owe money on a debt. Remember that legitimate businesses are unlikely to rush you. Requests for sensitive information. While we may send you a one-time code to verify your identity after you call us, remember that a First Bank employee will never reach out to you and then ask for your one-time passcode, PIN, or password. ` Being told not to contact your bank. Fraudsters may say that your local branch is under investigation for misconduct or that your usual banker isn’t available. Don’t be afraid to hang up and call a trusted number to confirm whether there’s really a problem. Unusual payment methods. If you’re ever asked to pay with a gift card, wire money to a specific account, or use a payment app, stop and call your local bank. Cryptocurrency and large cash withdrawals are also common. Scammers prefer payments like these because they’re hard to trace, and it’s often impossible to recover stolen funds. Learn more about financial fraud If you suspect a scam, here’s what to do. Need to make a quick decision in the heat of the moment? Remember these important fraud protection tips: ✅ Always double-check the details ✅ Stop and think through the situation ✅ Keep your private information secure ✅ Talk to someone you trust — like your local bank ✅ Only make payments through familiar platforms ✅ Don’t be afraid to trust your intuition And remember — fraudsters don’t only go after regular folks. They target business accountholders, too. Keep an eye out for invoices from unfamiliar vendors, urgent payment requests, unusual payroll changes, and spoofed emails. Some business accounts, like First Bank’s Business Elite, offer built-in treasury tools and fraud protection. 5 min read

Cropped shot of a businesswoman sitting alone and typing on her laptop during the day at home

Learn the Cybercrime Warning Signs The number of cybercrimes continues to increase day by day. This can sometimes make it hard for you to completely protect yourself from these threats. But the more you know about these scams, the better chance you’ll have at identifying and avoiding them. What is a cybercrime? Cybercriminals aim to exploit your information for their own personal gain, causing harm to financial stability and exposing secure information. Cybercrimes are those criminal activities where a computer or the internet is used as a tool for fraudulent claims, to gain personal or business information, or to infect networks and devices. *First Bank will always take the appropriate measures to keep your personal information safe. In this article, we have outlined some common cyber scams, so that you can understand what to look out for. Some common scams/fraud includes: Phishing Email Scams Perhaps the most common type of scam is phishing, usually done via email and designed to look like they are coming from someone at your company, someone you know, or a notable figure. Because these emails look like they can come from anyone, it is easy to be caught in this form of scam. It may be hard to fully protect yourself from them, but it is always best to double check who is requesting your information. Payroll Scams In Protecting Against Fraud from Nacha, a payroll scam is when, “fraudsters target individual employees by directing the employees to update or confirm their payroll information via a fake payroll platform that spoofs their employer’s actual payroll platform. In some cases, the fraudster may claim the employee must do one of these: view a confidential email from human resources or the payroll department, view changes to the employee’s account, or confirm that the account should not be deleted.” Cybercriminals will use the stolen credentials to change payment information within the business’s payment platform. This type of scam can be extremely dangerous to an individual and a company because it exposes both user and business information. Romance Scams According to fbi.gov, romance scams, or online dating scams, “occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or 7 min read

Where to Get 15-Year Mortgage Rates If you’re ready to buy a home, you’re probably wondering where to get 15-year mortgage rates, or you may just be wondering what a mortgage is. First Bank will go over your options with you and help you determine what type of home loan is best, whether that be a 15-year mortgage, or a 3/3 adjustable rate mortgage. Types of Loans at First Bank Before we tell you how and where to get 15-year mortgage rates, we’ll go over some of First Bank’s mortgage options. We offer: Conventional loans Jumbo loans Government loans VA loans Construction loans Dream It, Own It If you are a first time home buyer, you’re probably looking for a conventional loan. We offer two types of conventional loans: fixed-rate and adjustable-rate. Adjustable-Rate Mortgages vs. Fixed-Rate Mortgages Conventional adjustable-rate mortgages (ARMs) have interest rates that will change periodically depending on shifts in a corresponding financial index that’s associated with the loan. This basically means that your rate will change, causing your monthly payment to increase or decrease. ARMs can be beneficial for some home buyers because they typically have lower initial interest rates than fixed-mortgages, and they provide homeowners flexibility. Conventional fixed-rate mortgages offer a more straightforward approach to home buying. With a fixed-rate mortgage, your monthly interest rate never changes, making it easier for you to set a monthly budget. A lot of people prefer fixed-rate mortgages because they offer protection from rising interest rates for the life of the loan. Secure a Mortgage with First Bank We hope you feel a little more prepared to take on a mortgage and buy the house of your dreams. If you’re ready to apply for a mortgage loan*, visit your local First Bank, or contact our mortgage loan experts. *Loans subject to credit approval. ———— Sources: Investopedia: http://www.investopedia.com/terms/a/arm.asp 2 min read

10 Tips to Help You Save Money at the Grocery Store Here are 10 tips that will help you save a little cash each month at the grocery store, no matter how many hungry mouths you have to feed. 6 min read

What Is a Child Savings Account?

Ready to talk to an expert?