I just tried to open a Savings Account for my nephew - Bank does not want my money - without a fee!

[Synnical]

A custodial savings account, whereas the money would not be available to him until the age I determined. My nephew is turning 2 next month. I'm estranged from his father, my brother. But I still wanted to do something for my nephew.

My plan was to put $25-$30 in the account every year on his birthday. And let it earn interest while he is growing up.

Apparently, this bank doesn't like "small people". And I don't mean children. The Bank was a BIG part of the Bail Out.

Here is the online text chat from the representative when I tried to open the account:

Christopher : Hello and welcome to our sales chat. I will be glad to assist you with applying online today - May I ask what account you are interested in applying for?

You: Custodial account for nephew
You: Site states:

You: # 25 minimum to open # 0.10% APY1 # $300 minimum daily balance to avoid $5 monthly maintenance fee

Christopher : I would be glad to assist you with applying online. Before we get started, the online application requires; Being at least 18 or older, being a US Citizen with a Social Security Number or a Permanent Resident with a Social Security Number, and having a US residential address. Do you meet these requirements?

You: Oh, no, nephew is 2

You: I am over 18

Christopher : Okay, you will still be eligible to open the account online.

You: So, what is up with the $5 monthly fee? I just want to open an account for my nephew and put in 20-30 a year

Christopher : The Custodial Youth savings account features a $5 monthly fee which can be waived with a daily balance of $300, or by scheduling an automatic transfer of $25 from a linked checking account. Will that work out for you?

You: Obviously not. I guess I'll just open a savings account for him in my name.

Christopher : Our Regular savings, actually provides the same requirements and monthly fee

You: REALLY?

Christopher : That's correct

You: Wow, okay. (This bank) really doesn't care. Thanks for your time.

Christopher : That's not the case, we do care for our customers, but we also don't provide a free savings right now.

Christopher : Thanks again for visiting our chat

Christopher : Have a good day

No Free Savings Account? Is that the norm now?

-Cindy in Fort Lauderdale

[bemildred]

1. Local banks? Credit unions?

Why even bother with big banks?

[customerserviceguy]

16. Bingo

My local bank makes fee-free accounts available to minors. If you have a good credit union nearby, they'd be likely to do the same thing.

[eridani]

27. And often they give 7 or 8% interest on the first $500 to encourage first time savers n/t

[alfredo]

25. The Postal Credit Union has been my bank for several decades

they don't try to nickel and dime you to death.

[Subdivisions]

2. The $5 fee would take up all the funds in the account. n/t

[Suich]

3. I've heard about the monthly "maintenance" fees...

what a crock!

What bank was it?

:hi:

[SocialistLez]

5. I left a community bank over a monthly fee

If you didn't have TWO direct deposits, make 10 debit purchases, receive online statements (instead of paper) AND have online bill pay, they charged $10 I believe a month. I was fine with the first two requirements but I hate automatic bill pay.

[Synnical]

11. One of the REALLY Big ones

That is still in debt from absorbing the smaller ones.

[DJ13]

4. Put the money aside, then buy him savings bonds

That low interest rate they were offering wouldnt build much over the years.

[aquart]

9. Yes! I love my bonds!

And you can look up their current value online and everything. It also means that you end up giving him more.

Bonds are seriously kicky. Not the first couple of years when the kid wants to know why it isn't an iPad, but later, when the value starts to mount. Very, very kicky.

[proteus_lives]

31. My parents are both retired and live off their bonds.

They are a good investment.

[Jack_DeLeon]

6. Yep I would never be stupid enough to pay someone

for the privilege of holding my money for me.

Just look for another bank, or better yet buy an American Silver Eagle and hold it for him in lieu of cash. The 1oz silver coins are about $20 right now, and by the time he comes of age silver is likely to be worth more than the dollars.

[southernyankeebelle]

7. We have a bank acct for my granddaughter for savings. We

start a savings account with $100.00 deposit. Another thing we do is on her birthday we get a savings bond for $100.00. You spend $50.00 on it and at maturity she will get the whole $100.00. You would be surprised how it really will help her when she gets of age. My husband also has a CD and its a roll over every year. It will go into her name when we die. We live in a rural area and my husband and grandchild go around the block over a mile and collect cans. You would be surprised how much money you can get. She has over $500.00 in her account just in can money.

[DeSwiss]

8. K&R

Monthly maintenance fees? What for pray tell? Does the account have to have an oil change once a month? A dusting off? A wash and a hot wax?

Bastards. They should be required by law to call it what it really is: http://www.huffingtonpost.com/2010/07/16/financial-reform-banks-al_n_648756.html">Bank CEO and Management Lackey's Bonus Program fees......

[Warpy]

10. Oh, they want your money. The problem is that they want it all

You might be able to find a better deal at a credit union, but even that is doubtful. They sock the fees to you for the enormous trouble of having their computers keep track of the pittance you're putting away.

You might also think about putting the cash into birthday cards every year and stashing them someplace weird, like cookbooks, until you have enough to open a no fee account. No, it won't earn interest, but 1% of $25.00 isn't that much, either, even without those ridiculous monthly fees for doing nothing beyond sending you a 1099 form at tax time.

You could open accounts with that little money 40 years ago because it wasn't that little money back then, it actually bought something.

[Toucano]

12. You seem to be keeping the name of the institution a secret.

What's that all about?

[Synnical]

17. Really? You have to ask?

-Cindy in Fort Lauderdale

[Suich]

21. I have no idea why it's a secret either!

Since I'm not following the bank bailout anymore, I have no idea who she's talking about!

:shrug:

Bank of America or Chase, I would guess.

[Synnical]

22. That's not really the point

The point is that the Big Banks aren't giving free savings accounts.

Sheesh.

-Cindy

[Toucano]

24. But you edited out the name is a place where it would naturally have been.

In recounting you're story that way, you're protecting them from any real criticism.

A campaign against "Big Oil" is far less effective than a campaign against BP, for example.



The "you know who," approach is coy and cutesy. You could leave the coy and cutesy to the coy and cute, Cindy. Sheesh!

[SunnySong]

13. There are plenty of banks in Florida that don't charge a fee. nt

[oneshooter]

14. Try a Credit Union

They are independent, offer better interest rates and few fees.

[proud patriot]

15. I love my credit union

:hi:

[Chan790]

18. Yes and No. (I'm a bank employee.)

Yes, most banks charge maintenance fees now for savings accounts which carry low daily balances.

However, with the exception of some very large banks, most banks waive those fees for minor/custodial accounts until the minor reaches age 18...it's a good way to recruit customers for life and encourage saving behaviors from a young age. The issue there becomes many banks won't let you open an account for a minor not under your legal guardianship or without the signature of the legal guardian as they don't want to get caught in the middle of a lawsuit for control of the account-funds at a future unspecified date.

The bank I work for presents neither of those issues but is probably not a good choice for you if you or the child is not in the Southeast or Mid-Atlantic US. In that case, I'd suggest local credit unions or community banks. Edit: I see you're in Ft. L. so the SE US thing is not a factor.

Edit 2: if you're going to sit on the funds for a while until the child is 18, you may want save up the funds until you have enough to get into CDs or (considering the state of the economy) some sort of longer-term market-driven account as the standard rate industry-wide for a savings account is around .05%...that's $5/yr. per $1000...it's less than inflation. Ask friends and family if they have a recommendation of an FSR they bank with who they find knowledgeable, honest and smart...a good FSR generates good referrals from happy clients. Talk to your FSR once you choose one...they will guide you the right product.

[Synnical]

20. Thank you!

-Cindy in Fort Lauderdale

[malaise]

19. Open the account at the

Credit Union and stop giving the robber barons more power.

[cynatnite]

23. We opened a savings account for our son and it's free...

It's with our local bank. I think if it's over a $1000 there is a fee. It has less than a $100 right now.

[Hannah Bell]

29. a fee for *over* $1000? that's an odd one.

[cynatnite]

32. Well, we have free checking unless we maintain a balance over $5000...

which we've never had. I guess our bank doesn't charge to small account holders who maintain a positive balance.

[Hannah Bell]

33. that's an exceptional robin hood bank.

[Chan790]

34. That's to encourage you to move funds to other less-immediate-access types of accounts..

Such as MMAs, CDs or even plain old Savings accounts as those account holdings are largely used for lending or to secure holdings.

Conversely, they're required to keep a far higher percentage of checking deposit funds on hand as marked for immediate availability...banks don't make money on clients with big checking account balances, no VISA or MasterCard check card, no overdraft coverage (Regulation E) and no other bank products.

[struggle4progress]

26. Allowable bank fees may depend on the state, but some can be ridiculous

A few years back I took a brief ten-month gig out of my home state. It really helps to have a local bank -- and this is the best I could do: had to keep something like $2000 on deposit to avoid monthly fees; neither checking nor savings accounts paid interest; only CDs paid interest; had to pay for checks; there was a fee per check if I went over about fifteen a month; AND the bank charged a fee to open and close checking and savings accounts. I had to pay the bank something like $50 to close out my accounts when I left town :grr:

[Hannah Bell]

28. credit union. those fees for small accounts came in years ago, & that's when i switched.

not worth it to big banks to maintain an account for a piddly $25.

that's like 1/16 of a penny would be to you.

the banking industry sucks the big one.

[proteus_lives]

30. It is at my bank.

I have a $300 minimum to avoid a fee.

Been that way since I opened the account in 2001.