Do you want to give a baby in your life the best gift ever? Then open your wallet and put some cash in an envelope along with the note: “For baby’s savings.”
Starting a baby on the path to savings from birth can make a huge difference in that child’s life. While baby might get one less cute outfit or special rattle, they won’t remember. Years down the road, they’ll be extremely grateful when they have money to buy a gaming station, or a car thanks, in part, to the money you’ve gifted.
For your gift to have the most meaning, baby’s parents should open a savings account that can grow as baby grows. To make the most out of the early investments into a baby’s future, INB is offering a new product called First Steps Baby Bundle. The bundle combines a savings account with a 1-year certificate of deposit.
INB developed this product bundle because we recognize that major life events, such as welcoming a new baby to the family, come with questions about banking and finances. We’re committed to helping people in our community live a financial healthy life. That starts from day one, and we want to help new parents and their families give (and get) a head-start when it comes to their child’s savings. Putting away a little nest egg for a child’s life events is important.
A 2022 statista.com study shows about 39 percent of children ages eight to 14 in the United States have a savings account. A recent Consumer Financial Protection Bureau study also shows that children from low or moderate-income families who have a savings account for college are three times more likely to go to college, and four times more likely to graduate—even if the account holds less than $500.
Children Need to Understand Saving
As a child gets older, a parent or loved one can explain the importance of savings by prioritizing saving over spending. This life lesson takes time to learn. Opening a savings account for your child is a great way to introduce that concept at an early age. As kids grow, they can get access to their account through the INB digital app to watch their savings grow and to set goals for themselves. In addition, you can incentivize savings by matching what the child adds to his or her account.
Piggy banks are great for helping with fine motor skills, and dropping loose change into one is a great way to collect money. But piggy banks can only hold so much cash, and that money doesn’t earn anything just sitting there. My children have banks, but once full, they love to take them into the bank to watch the coin sorter count the coins and then receive a receipt for the amount deposited to their savings account. Piggy banks really are a great way to enhance their learning of prioritizing savings.
First Steps Baby Bundle Package Details
By bundling both a savings account and CD, we’re able to offer a 5.00% annual percentage yield (APY) on the 12-month CD. Minimum balance $500. The CD will automatically renew for another 12-months with the rate in effect at that time. You will have 10 days after the maturity date to withdraw finds without penalty. If you do not withdraw the funds, each renewal term will be 12 months beginning on the maturity date.
INB’s Youth Savings Account has a lower minimum balance requirement than a regular savings account. It’s a minimum of $10 to open the account and the $2 monthly maintenance fee is waived by maintaining a $10 minimum daily balance. The APY is 0.20% as of Dec. 16, 2022 and may change at anytime.
Share this message with the parents of infants in your life. Let mom and dad know you’d like to make regular contributions to the child’s savings. Anyone can contribute to the accounts. Parents, grandparents, aunts and uncles. It’s a great place to collect and stash away all that birthday and holiday cash they accumulate over the years. And that cash will mean so much more than long forgotten toys or clothes that no longer fit.