Kids and savings accounts and morals, oh my!

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Spacers's picture
Joined: 12/29/03
Posts: 4100
Kids and savings accounts and morals, oh my!

Both of our kids have a savings account at Chase, but DH is the official owner because minors can't have bank accounts. He takes each of them in to our local branch a few times a year to deposit their piggy bank money and checks from grandparents, and he has fond memories of doing the same with his grandpa, who would pull out his wallet & match, right then & there, whatever DH was depositing. DH doesn't do that, but he loves the memory! We no longer want to support Chase (see a couple of articles below) and are going to move his money to the credit union I belong to. And then DH was told that the kids' accounts at Chase can't stay open if he has no account there.

Both kids also have a savings account with my credit union but there is no local branch. I have direct deposit, I do most of my banking online, and if I need cash I use my card at the grocery store or at a network ATM. I said, let's just move all the kids' money to their savings accounts at my credit union; when they make a deposit, we can either buy their coins for laundry money and take dollar bills to the network ATM, or keep the cash & transfer money from my checking account to their savings accounts. We can even show them online as we do the transfer. The alternative is to keep a balance of at least $300 in DH's savings account at Chase, which defeats the purpose of trying to escape from Chase in the first place!

What would you do? Is it more important to kids to be able to walk into a bank and deposit their money with a real teller and get a receipt for it, or is it more important to take all of our money out of a financial institution that we can not in good conscience support?

JPMorgan Chase's 11 Biggest Problems
JPMorgan Chase Faces Full-Court Press of Federal Investigations - NYTimes.com

AlyssaEimers's picture
Joined: 08/22/06
Posts: 6561

Hmm. Could you find another local bank that would allow children's accounts?

ange84's picture
Joined: 12/28/09
Posts: 6564

Do your schools do school banking there, or any banks offer kids programs? When I was at school a bank had a program for school kids and I believe they still do it in some form. We used to have deposit books we took to school with our money in and put it in a bag which was collected on banking day and returned the next day.
My Mum and I have a trust account for DS, but we don't take him to put money in yet, we just do it ourselves.

Spacers's picture
Joined: 12/29/03
Posts: 4100

There are no banks in California that will allow a minor to open an account without an adult as the legal owner. There are no other banks in our neighborhood that will waive monthly fees without direct deposit, which DH can't do since he doesn't have a job, unless you lock up a chunk of money with them, which we'd rather not do. We really want to get away from big banks altogether, hence the move to the credit union. It really seems the only options are staying with Chase solely so the kids can deposit money into their accounts in a branch, or moving everything to my credit union. I just don't get his fascination with going to the bank. That's something I avoid like the plague! Blum 3

GloriaInTX's picture
Joined: 07/29/08
Posts: 4116

Maybe he could get them a reloadable VISA card and take the cash down and put it on the card. I don't know much about them so you would probably have to do some research on the fees. They might think it is kind of neat to have a debit card with their name on it.

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GloriaInTX's picture
Joined: 07/29/08
Posts: 4116

dp

Joined: 05/31/06
Posts: 4780

I don't think that its a big deal to have a physical bank to walk into. Odds are that they won't be around by the time our kids are adults anyway. We just show our kids how we deposit their checks they get online into their accounts anyway, and print out a copy of their statement for them to keep in their room. Their piggy bank money does not get deposited, it is theirs to spend when it gets large enough, we do it on big events like last day of school or if we are buying gifts for other needy kids at christmas.

AlyssaEimers's picture
Joined: 08/22/06
Posts: 6561

"Spacers" wrote:

There are no banks in California that will allow a minor to open an account without an adult as the legal owner.

I am curious as to why? I would think many 17 year olds would have enough money to want a bank account.

Joined: 08/17/04
Posts: 2226

Is there another credit union nearby? Our credit union allows us to open savings accounts for kids without our accounts there. We just did it there because we love them and it's our CU. Plus it is free.

mom3girls's picture
Joined: 01/09/07
Posts: 1535

Our kids have never been to a bank to deposit money. They count the money and then we put it in. The older kids have an old fashion bank book they have to keep, for a math lesson. They like that they can get online to see their balance.

ange84's picture
Joined: 12/28/09
Posts: 6564

Yeah I don't get it either, I had my dollarmites account from grade 1, my Mum had to sign forms to say I could participate. At 12 she took me to another bank to open an account in my name, she had signing authority on it so she could add money etc. I had to have a bank account at 14 when I started working to have my pay deposited in it which is a pretty normal age to start working here.

I actually don't use on line banking so I do go to the bank if I need certain things, but really that's a couple of times a year at most

Joined: 03/08/03
Posts: 3189

I don't think you need a physical bank either. That's actually not how they're going to do their banking in the future anyway. We do everything online. Right now I don't make that an activity with the kids, I think we'd all find it really boring, but they know they have accounts. They keep their own saved up money separately, in their rooms.

But you can turn the in-bank experience into an online one and it will do the same thing.

I think credit unions are great, but it's really hard to beat the convenience of the bank I use.

Alissa_Sal's picture
Joined: 06/29/06
Posts: 6427

We do take T to deposit money into his account at our local bank. It's not like the most exciting thing ever, but he does like the change machine and the lollypops. I think at this age being able to actually go and see them do it is more tangible and easier to understand than just showing him an online bank statement. I agree that physical banks will probably be gone by the time our kids are adults, but I do think that they are slightly useful for providing a sort of concrete age appropriate learning experience. Not a huge deal though. I wouldn't do it if I had a personally compelling reason not to.