I currently have three children with a fourth on the way. With everything that goes on during our lives, it becomes hard to stay on top of everything – including savings accounts. Several years ago I decided to setup an automatic savings account for my kids through ING DIrect (Now Capital One) and it was the best decision I have made.
How Does an Automatic Savings Account Work?
An automatic savings account is nothing more than a traditional savings account that recieves regular, scheduled deposits from a predetermined account. In my case, each one of my children receives a $10/wk deposit from my checking account into their savings accounts.
What is the minimum amount of money I need to deposit?
On the Capital One accounts I have setup, the minimum deposit amount is $1.
Why should I setup an Automatic Savings Account?
There are several reasons why I setup these accounts. The first reason was convenience. I knew I wanted to stick money away for my children but didn’t always remember. The automatic plan forces me to save money for my kids.
How long does it take to setup an automatic savings account?
I was able to open a new account and setup the automatic savings plan within minutes. It was very easy and took no time at all.