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Special savings accounts for kids

Parents have many investing options when saving money for their children's future needs. Many offer tax incentives, such as 529 college savings plans, or the investment flexibility of a custodial account. But some banks are giving the children themselves the opportunity to learn the value of money and savings by offering kids-only savings accounts -- and it's an option parents shouldn't ignore.

The banks below have relaxed their minimum-balance requirements and fee structure -- and even thrown in a few perks -- to give kids the opportunity to build their savings through their own account:

Affinity Bank offers the Kids Only Savings account, which pays a 10 percent APY on all balances up to and including $500. The minimum deposit is $1. Children receive a free Affinity Bank Piggy Bank for opening an account. This offer is only open to California residents.

Independence Bank has a Kids' Freedom Savings account for children under the age of 18 with a low $50 minimum to open and a minimum $50 balance requirement to avoid fees.

Old National Bank offers a kid$bank savings account, which can teach kids about savings and help get them a head-start for college savings. There are no minimum balance requirements and no monthly service charges.

La Jolla Bank will pay $1 for every inch a child grows in their Kids Club Savings Account. The minimum balance is $1 to open the account, which is open to all children under the age of 18.

Whatever account you choose, your children can learn even more about saving by making their own visits to the bank and preparing and submitting their own deposits. This way, they can play a central role in a money-management exercise that can pay them dividends well into adulthood. 
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