ING Direct Offers Kids Savings Account

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ING Direct has started offering Orange4Kids, a kid’s version of their online savings account. It’s pretty much everything you like about the Orange Savings Account except with training wheels. For example, it’s FDIC insured, has no fees, no minimum balance requirements, earns 1.00% APY interest (at the moment), and you can login with a customer number and PIN.

Where are the training wheels? Well, kids can only check balances. They can’t move money around on their own, an adult has to sign in with a separate customer number in order to make transfers. The training wheels don’t come off until the kid turns 18, at which point it converts to a regular Orange Savings Account.

My reaction to this is like my reaction to when I heard about playing Monopoly using debit cards instead of the funny money. It’s a little too much “adult” interjected into a child’s life. It’s hard enough managing your money as an adult after it’s been abstracted away into numbers on a screen, imagine how hard it is to properly teach kids about it. That said, I don’t have any kids so I’m not really too wise about that stuff.

I think it’s great to instill the importance of savings, I’m just not sure a kid’s savings account is the best way to do it. Now, if they went to route of Affinity Bank’s Kids Only Savings account (minus the bank failure), that might get me interested. 🙂

{ 8 comments, please add your thoughts now! }

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8 Responses to “ING Direct Offers Kids Savings Account”

  1. Shirley says:

    I moved our three youngest grandchildren’s savings accounts (funded by us) to ING Orange4Kids some time ago.

    They are too young at this point to have any idea about savings accounts, interest, etc. but the accounts will have built up to clearly show the lesson in a few years when they are ready. And the interest rate of 1.00% APY is much better than where I had them before at the local CU. 😉

    • Strebkr says:

      I have a question Shirley – Who is the legal owner of the account? Is it you or your grandkids?

      ING is great and I use it for my personal stuff. When my kids are old enough for a savings account I might start them at ING and our local bank (so they can physically see the money going in and out when we make deposits)

      • Shirley says:

        On the “Kids Accounts” the child must be under 18, so I am the legal owner.

        • Strebkr says:

          Thanks Shirley. I was curious because at some point it becomes a Kids assets vs parents assets in terms of eligibility for scholarships, etc.

  2. No Debt MBA says:

    I think the best and most helpful part of having a savings account as a kid was taking the pennies I’d put into a roll and the few dollars I’d saved up physically into the bank. The teller would always make a fuss over me and it made me feel really good and important to be putting money into a bank and saving. I’d also get paper statements with my name on them which is pretty incredible when you’re five.

    I don’t think the ING account can replicate or replace what made a savings account a really good habit building tool for me as a kid.

  3. Rob O. says:

    I agree that for kids – and many adults I know – having a less abstract, more tangible means of managing their money is a better way to learn about personal finance.

    I thought it kinda harsh at the time – and a guest at the house was outright stunned – but my wife made our 4 yr old son go get his piggy bank and divvy out $1 in coins to repay for a shattered jar of juice that he had scaled to the top shelf of the fridge to retrieve while we were getting ready for work that morning.

    It was the first time he’d ever climbed inside the refrigerator as he does n0t routinely get his own snacks or drinks from the fridge. And I’d dare guess that it might be his last run at spelunking in the fridge since he was heartbroken at having to give up some of his “hard earned” money.

    For the record, I was disturbed to learn about the debit card upgrade to Monopoly too! Even outside of the fun, the game offered so many fundamental lessons in its original incarnation. Stripping out the paper money is really crippling.

    • Shirley says:

      Having raised five kids, I will go with your wife’s decision on this one. It is never too soon to teach children that there are consequences for their actions and to take responsibility for them. Sounds to me like you have found a lady with a very realistic outlook.

  4. skylog says:

    this is just another feature of ING that i hope does not get the ax when the capital one deal is complete. i am looking at ally, because i feel it is only a matter of time before they kill a great service.

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