Bank offer for Children's savings account 7% or higher

Question

I heard there are a couple of banks offering 7% or higher interest on Children's savings accounts (Kids under 18)

• Are these a good investment for my kids?
• I can't find these offers on the internet, what banks are doing this?

Answer 1

Local banks usually offer this to educate kids and market the bank by getting kids used to banking at their bank. Sometimes they take deposits in the classroom, and usually the high rate is limited to a maximum balance of $500.

They are deposit accounts, so they are FDIC insured, and are great investments for kids. I still have my savings passbook from when I was in 3rd grade in a drawer somewhere!