bank rates

Read The Fine Print On Youth Accounts

The Bank of Bennington offers a top youth savings account deal.Opening a youth savings account or CD that earns eye-popping returns for your son or daughter is a great way to teach them about the value of money.

But some of the seemingly best offers might not appear quite so awe-inspiring once you read the fine print.

That’s because many of these accounts pay top rates only on small sums of money.

But you can find banks and credit unions that stand out if you look hard enough.

Take The Bank of Bennington, in Bennington, Vt., for instance.

It pays 1.25% APY on balances up to $25,000 on its Kids’ Savers account.

On the surface, that rate looks pretty weak when compared to the 8% APY offered on the Youth CD at Gateway Community Federal Credit Union in Montana or the 4% APY offered by airbanking.com for its junior airsavings account.

But there are strict limitations on these accounts.

Gateway’s deal is only good on amounts up to $2,000, and is only available for kids under 14 years of age. Airbanking’s offer applies on balances up to $1,000 for youngsters under the age of 18.

The Bank of Bennington’s Kids’ Savers account (www.thebankofbennington.com) is available to anyone in the Bennington area up to age 18.

There’s no minimum deposit required to open an account. The portion of the balance above $25,000 earns 0.30% APY.

The bank has four branches in Vermont.

In comparison, the best nationally available savings account rates of 1.15% APY are offered by Discover Bank (www.discoverbank.com) and CNB Bank Direct (www.cnbbankdirect.com).

The best nationally available money market accounts offered by AmTrust Direct (www.amtrustdirect.com) and My Banking Direct (www.mybankingdirect.com) pay a slightly better 1.25% APY.

You can compare these savings rates to the best money market and savings account rates from scores of banks in our database.

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