Getting back to the savings account - you should consider ING Direct. They're online only and then you tie it to your checking account. My husband and I set up a special side savings account earmarked for our DD. (She has a regular savings account too for things that come just in her name.) But the ING account has a pretty high interest rate - right now it's about 3%. For us, that's great, and we'll definitely use it more than tickets or a toaster! You should give it a try.

I was going to comment on ING as well...great interest...$25 is better than no dollars...and its easy to use!

I opened and WAMU online for my dd (it has my name on it also as it has to be since it is online) It is 3.30%. There are no good kids accounts at banks around here anymore. I am sure if there was a local owned bank them they would have one for kids (seems they are the only ones with them) and Credit unions. As for life inc it is good to have kids accounts but most of them mature and they have to be cash out ( time the child is 30 ish time frame) or you will loose all money that was put into it. Also if you get a life inc account with a financial advisor/ inc rep make sure there is no RIDER on the policy a lot will list them selves so they can collect also if something happens to your child.

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My husband says there is a minimum deposit for getting this free referral money, but I don't know what it is.

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It's not what you make; it's what you spend.

Hey mommyschu, have you checked out ShoreBank? They actually have a 3.5% APY High Yield Savings Account. Plus, they have no minimum or maximum on the monthly deposits and no monthly fees. This account is all online so you can have access to your money 24/7. I know this because I work with them. And, let me also just say, they have an amazing mission statement. I've never seen one like it from a bank - posted on the home page of their website. Basically, they follow a triple bottom line. They're committed to "building stronger communities, creating a healthier environment and helping its customers achieve financial success." Check out what they did for the Allemas Childcare and Enrichment Center.