Why you should open a high-yield savings account for your child now

As a parent, you want to set your child up for a secure and successful financial future. One way to do this is to build a savings fund that they can tap into for anything from their first car to their college education.

Piggy banks can be a fun, visual way to teach your child how to start putting money aside. But if you let their money sit there, you (and your children) missing.

per Increase their savings rapidlyOpen a savings account for your child — specifically, a High yield one. Read on to find out why opening such an account now can pay off.

See how much your child could earn by looking at current savings rates here.

Why you should open a high-yield savings account for your child now

Here are four big reasons you should consider opening a high-yield savings account for your child.

The sooner you start, the more their money can grow

Savings accounts earn interest, allowing the money you put into them to earn more money without requiring any action on your part. Interest is calculated based on the current balance, including interest earned in previous periods, so the longer your funds are in the account, the faster they will grow. The sooner you open a savings account for your child, the more interest they can earn and the more they’ll have to draw from down the road.

See today’s savings rate now!

Interest rates are high now

High-yield savings accounts can earn 10 to 15% more interest than regular accounts. And rates are currently high – think 4.5% or more. This makes now a great time to open one of these accounts.

You can start by checking out This is the top savings account. Don’t forget to consider Online BankWhich often offers the highest rates and specials Low or no fees.

They will not be tempted to touch it

Piggy banks are easy to open, and there’s no shortage of things your kid will love spending that money on By putting their savings in a savings account, you keep this money out of sight and out of mind.

Of course, part of teaching your child to save is reminding them that saving is for the future. But if they feel inclined to access the funds, it never hurts to add an extra layer of protection.

Their money will be safe

If you open an account at an FDIC-insured bank or NCUA-insured credit union, any funds you deposit safe Up to $250,000 per account per institution. Whether your bank fails or interest rates drop, your savings and earnings will go nowhere. This can give you peace of mind that your child will be able to rely on their savings when the time comes to use them.

Ready to open a high-yield savings account for your child? Check your options here.

Bottom line

We all want the best for our children. An easy way to ensure they will have the money they need in the future is to open a high-yield savings account for them today. With this type of account, their money can grow interest quickly and stay safe until they need it. Also, there is something “grown up” about having a bank account You may find that your child even likes it more than a piggy bank.