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Home > Blog > Investing for Children

Investing for Children

Investment Accounts for Kids—Best Options for Long-Term Investments

While investing may not be your child’s main priority, teaching them about the importance of investing early on can benefit them in the long run. By opening an investment

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* Annual Percentage Yields (APY) are accurate as of 1/5/2025 and may change after account opening. Only Six tiers of balances are accepted for FreeKick accounts. Partial withdrawals are not allowed. Account interest tier is determined at the time of initial deposit. Excluding interest, no additional funds may be credited after account opening. There is no Penalty for early withdrawals. Interest is compounded daily. If you have a balance of $1,000, then the APY will be .10%. If you have a balance of $2,000, then the APY will be 1.00%. If you have a balance of $3,000, then the APY will be 2.00%. If you have a balance of $4,000, then the APY will be 3.00%. If you have a balance of $5,000, then the APY will be 4.00%. If you have a balance of $10,000, then the APY will be 5.00%. Additional account terms and conditions may apply.

Coverage amounts are subject to the terms, conditions, and requirements of FDIC. Specific account coverage may be more or less than $250,000 for an individual or $500,000 for a joint account.

Insurance products are Not a Deposit, Not FDIC-Insured, Not Insured by and Federal Government Agency, Not Guaranteed by Austin Capital Bank or any of its affiliates, and May Go Down in Value.

Primary account holder must be at least 18 years old and a citizen of the United States or legal resident with a valid social security number. Sponsored account holders must be at least 13 years old and a citizen of the United States or legal resident with a valid social security number. Primary account holder must be the co-parent or parent/legal guardian of minor and adult sponsored account holders. Applicants for accounts are subject to verification of identity. A valid bank account from a United States based financial institution is required for payments and funds transfers. All loans are subject to consumer report review and approval.

Disclaimer: Credit profile or credit score improvements are not guaranteed. Individual results may vary. Changes in credit score reflect individually specific financial behavior and history. Failure to make minimum required loan payments on-time may result in loan payment(s) being reported as delinquent to credit bureaus which may negatively impact credit profile. Accounts may affect payment ratios on applications for other credit. Lender underwriting criteria and individual credit profiles are different, there is no guaranty that use of this product will improve eligibility or approval for credit cards or any other type of financing. Minor child must accept individual responsibility for the credit builder credit account and activate credit reporting when they become an adult for the credit builder account to be reported.

FreeKick is NOT a credit repair service and does not remove negative credit history from credit profiles.

Testimonial Disclaimer: Unique experiences and past performance for individuals do not guarantee future results for other individuals. Testimonials may not be representative of all individuals and certain individuals may have inferior results than indicated in testimonials.

The Center for Financial Services Innovation (CFSI): Secured Credit Cards: Innovating at the Intersection of Savings and Credit. Page 7. 2016. “In general, a consumer with a low credit score can expect to pay more than $200,000 more for financial services over a lifetime, compared to an individual with a strong credit score.”

Over a million children are victims of identity fraud every year. Javelin Strategy and Research.

A child is 50x more likely to be a victim of identity fraud than an adult. The youngest victim was just 5 months old. 16-year-old girl had $765,000 of debt associated with her identity Carnegie Mellon Child Identity Theft Study.

Identity information for children sells for 5x more than adult information on the dark web. CNN Business Infant Social Security numbers are for sale on the dark web.

Synthetic Identity Fraud is the fastest growing financial crime in the United States. McKinsey & Company. Fighting back against synthetic identity fraud

48 million Americans have sub-600 credit scores because of thin or damaged credit. Nerd Wallet 2016 Consumer Credit Card Report

FreeKick® is a registered trademark of Austin Capital Bank. FICO® is a registered trademark of Fair Isaac Corporation. LifeLock® is a registered trademark of Gen Digital Inc.

Price comparisons for LifeLock Advantage Family Plan and Aura Family Plan as of November 7, 2023.

Austin Capital Bank SSB. Member FDIC.