RateAPY

“SMART” Youngsters Earn More than 2% with an Ultima Bank Savings Account

Posted by: RateAPY Bank Rates News
June 3rd, 2010

High Interest Savings Accounts for Kids

Some banks offer special savings account deals to teenagers. You can see why. On the one hand, the child gets a very competitive interest rate, and a useful introduction to healthy savings habits. On the other, the bank gets an opportunity to bond with a potentially very valuable new customer.

Tempting Interest Rates

Ultima Bank’s SMART savings account is precisely such an account. The acronym, SMART, stands for “School Money At Right Time”, and the account is currently paying 2.02% APY. Ultima says that that’s the floor rate for this account, but that the yield could rise as high as 5% if interest rates generally increase.

Most are unlikely to be charged for using their accounts (you’d have to make more than two withdrawals in a month), but you should take note of some conditions. The bank’s Web site says: “Any withdrawals prior to your 18th birthday may result in a penalty of six months of interest… Note that on your 19th birthday, this account converts to a Regular Savings account.”

Compare Savings Accounts

Whatever your age, be sure to compare savings account interest rates here.