Money Matters: Boost Your Keiki’s Financial Abilities With a Bank Account

See what each of Hawai‘i's six biggest banks have to offer.

Photo: ThinkStock

Where do your keiki keep their money? Our house has accumulated two traditional piggy banks and several others in shapes including a London bus, dinosaur, space station and two kid-painted airstream caravans. I’m realizing it’s about time to trade in the piggy banks for bank accounts. After all, multiple studies show that learning about savings and interest at a young age can help keep one out of debt in later life.

According to the Organisation for Economic Cooperation and Development, 53 percent of American 15 year olds have bank accounts. Saving is a lesson, right? So, the forum’s latest study found that U.S. students who had bank accounts were much more likely to have a good grasp of financial knowledge.

Reading that reminded me how my kids refer to ATMs as “money machines,” as if they spew out free cash. So, I started looking into how to open a child savings account and think of ways to help our kids learn about the value of earning, accumulating and wisely spending money.

Read on to see what I found out about local banks’ keiki accounts – including which one mails out birthday gift vouchers – and visit honolulufamily.com in the upcoming weeks to learn how much the tooth fairy pays across O‘ahu, our review of the Keiki Swap Meet and other blogs on money matters.

Keiki Accounts at Hawai‘i’s 6 Biggest Banks

While many online banks offer higher interest rates, most parents will probably want to show their children a brick and mortar bank. All but one of Hawai‘i’s six biggest banks offer kids the same interest rates as adults receive with a basic savings account. One offers a slightly higher rate. When choosing an account, note that while a custodial account belongs to the child, the guardian will have to be present to carry out transactions. With an individual account, the child, at least in theory, can carry out all deposits and withdrawals by him or herself. When children turn 18, all of the accounts listed below convert into regular savings accounts.

To open an account for your child, make sure you have:

• Parent or guardian’s state ID, driver’s license or passport.
• Child’s social security number and a picture ID, such as a school ID.
• A copy of the child’s birth certificate (it may be requested).

American Savings Bank Moneyhune Savings

• Type of account: Individual account. Custodial accounts have different requirements and fees to those listed here.
• Age: No age minimum, as long as child can sign his or her name, to 17 years old.
• Minimum initial deposit: $5
• Minimum balance required after initial deposit: None
• Monthly service fee: None
• Debit Card: Available for children 12 years and older with parent or guardian approval
• Click for more information.

Bank of Hawai‘i: Kids Only Saving Account

• Type of Account: Custodial
• Age: Birth to 17 years old
• Minimum initial deposit: $25
• Minimum balance required after initial deposit: None
• Monthly service fee: None
• Debit Card: None with this account. Child can request to have his/her own individual account with debit card when he or she turns 16.
• Click for more information.

Central Pacific Bank: Starter Savings

• Type of Account: Custodial or Individual
• Ages: Custodial: Birth to 17. Individual: No age minimum, as long as child can sign his or her name, to 17 years old.
• Minimum initial deposit: $10
• Minimum balance required after initial deposit: $25
• Monthly service fee: None if minimum balance is met. $2 monthly service charge if not.
• Debit card: Available for children 13 years and older.
• Click for more information.

First Hawaiian’s Keiki Account

• Types of Accounts: Custodial or Individual
• Age: Custodial account: Birth to 17. Individual account: No age minimum, as long as child can sign his or her name, to 17 years old.
• Minimum initial deposit: $25
• Minimum balance required after initial deposit: None
• Monthly service fee: None
• Debit Card: None.
• Click for more information.

Hawai‘i National Bank: Kids Savings

• Type of account: Individual
• Ages: 5 to 17 years.
• Minimum initial deposit: $10
• Minimum balance required after initial deposit: None
• Monthly service fee: None
• Debit card: From 12 years with parent or guardian permission.
• Extra perks: Annual percentage yield is higher than for a regular savings account and child receives a $5 gift voucher on his or her birthday.
• Click for more information

Territorial Savings Bank: Keiki Savings Account

• Types of accounts: Individual or Joint Passbook Account. (See here for an explanation of what a Passbook Account is.)
• Ages: 5-17 and must be able to sign name.
• Minimum initial deposit: $10
• Minimum balance required after initial deposit: None
• Monthly service fee: None
• Debit Card: None with this account. But, child can open a Statement Savings account when they turn 15 and receive an ATM card.
• Click for more information.