Where can a minor get a decent interest rate on savings or money market account?
PayPal pays a good rate but requires you to be 18. Local banks will open accounts for minors but won’t pay more than 1% interest. Any suggestions would be appreciated.
I googled for “youth money market” and found a few banks that were willing to open accounts for teenagers. The rate isn’t going to be as high as it will be for adults, but it’ll be better than a standard checking or savings account.
The best I could find was 2%, though, which won’t even keep up with inflation. If you’re doing this as a means to teach economics to a youth, I’d pass — it’s pointless to teach them to lose money to inflation. If you’re the youth and are trying to get a decent rate, I’d ask your parents for 5% and invest in the bank of Mom and Dad. Draw up a ledger and ask them to keep it for you, depositing money and collecting compound interest.
Good luck,
Doug
Isuru Minor’s Savings Account