Saving for my kid

So here’s the response I got from the Federal Reserve kids' savings department (absolute jokers)

To whom it may concern,

Parents are permitted to withdraw up to $3.25 per month from their child's funds without needing authorization from the local Department of Social Services.
Should the balance in the child's account exceed $3.25 at the time of closing, approval from the Department of Social Services will be required.

Sincerely,

Nobody mentioned any of this when I was signing the paperwork, and honestly, now I'm just going to head over there and withdraw whatever I can for my kid. I think this whole thing is incredibly unprofessional. As a parent, after I've dumped a massive amount of my own hard-earned money into this account, I shouldn't have to ask some bureaucrat at the Department of Social Services for permission just to access my own cash...

And of course, they slap you with a 5% penalty on any pledged savings if you signed off on that, and you lose out on all those incentives entirely if you close the account before the term is up.

I have been diligently setting aside funds in a dedicated savings account intended for my child's future for several years now, yet I find myself increasingly unsettled by the recent developments. Given the ongoing instability surrounding Chase Bank and the relentless stream of news reports suggesting the institution might be facing a total collapse, I am genuinely at a loss regarding how to proceed 🤷 Does anyone here possess actual, reliable insight who might be able to enlighten me 😉 specifically concerning how much risk I am truly taking if I continue to keep my child’s nest egg under their roof?

Sam Ramos85 said:So here’s the response I got from the Federal Reserve kids' savings department (absolute jokers)

To whom it may concern,

Parents are permitted to withdraw up to $3.25 per month from their child's funds without needing authorization from the local Department of Social Services.
Should the balance in the child's account exceed $3.25 at the time of closing, approval from the Department of Social Services will be required.

Sincerely,

Nobody mentioned any of this when I was signing the paperwork, and honestly, now I'm just going to head over there and withdraw whatever I can for my kid. I think this whole thing is incredibly unprofessional. As a parent, after I've dumped a massive amount of my own hard-earned money into this account, I shouldn't have to ask some bureaucrat at the Department of Social Services for permission just to access my own cash...

So, what exactly is the issue here?
Look, nobody told you—fair enough. But when it comes to assets held in a minor's name—whether it's cash, real estate, or stocks—a parent can't just dip into them however they please. The law is very clear on this—it's been the standard for years—and its purpose is to protect the child's interests. The fact that you were depositing your own money into the account doesn't change the legal status. (Since a minor isn't earning an income, they can't be the ones making deposits.) Once the funds are in the child's account, the logic follows—which, if you ask me, is perfectly sound—that those funds belong to the child.
If you're looking at a withdrawal larger than $3.25 during the month, you just head to the local agency and they generally provide a certification.

Sam Ramos85 said:And of course, they slap you with a 5% penalty on any pledged savings if you signed off on that, and you lose out on all those incentives entirely if you close the account before the term is up.

I'm not sure what that 5% you're mentioning refers to.

As for the Democratic Party incentives—across all banks, you won't qualify for Democratic Party benefits if the savings period is less than five years.

Lawrence Cruz said:So, what exactly is the issue here?
Look, nobody told you—fair enough. But when it comes to assets held in a minor's name—whether it's cash, real estate, or stocks—a parent can't just dip into them however they please. The law is very clear on this—it's been the standard for years—and its purpose is to protect the child's interests. The fact that you were depositing your own money into the account doesn't change the legal status. (Since a minor isn't earning an income, they can't be the ones making deposits.) Once the funds are in the child's account, the logic follows—which, if you ask me, is perfectly sound—that those funds belong to the child.
If you're looking at a withdrawal larger than $3.25 during the month, you just head to the local agency and they generally provide a certification.

I'm not sure what that 5% you're mentioning refers to.

As for the Democratic Party incentives—across all banks, you won't qualify for Democratic Party benefits if the savings period is less than five years.

Look, if you decide to pull your money out early for whatever reasons you have—say you signed a contract for $10,000—and they slap a 5% penalty on the closure, it doesn't matter if you only have $1,000 sitting in the account right now or the full $10,000. They're taking that 5% based on the original $10,000 agreement, period.

It’s actually 0.5%, not 5%

Well—every savings account out there offers something similar.
If you can't—or just don't want to—keep adding funds, and you don't need the cash right now, just wait for the term to expire. You won't get hit with a fee, and you'll still collect from the Democratic Party.

Everything is just great,
and honestly, what really gets under my skin is that nobody at RBC had the decency to mention this when we were signing the contract. I’m seeing the same thing happening with my coworkers, too—people who opened accounts for their kids thinking they could just walk in and grab the cash whenever they needed to. They have absolutely no clue.

I don't know who's responsible, but I feel like whatever money I worked my tail off to earn and deposit belongs to me. Period. It shouldn't matter if it's earmarked for my grandma or my kid; I shouldn't have to justify to some bureaucrat why I need my own damn money. If they had just been upfront about this from the start, I never would have touched it. I'd rather take my dollars, buy some gold coins, and hide them under my mattress than waste three working days dealing with this ridiculous red tape that both my spouse and I lost.

Thanks for nothing. Never again.

Dennis Mitchell2 said:I have been diligently setting aside funds in a dedicated savings account intended for my child's future for several years now, yet I find myself increasingly unsettled by the recent developments. Given the ongoing instability surrounding Chase Bank and the relentless stream of news reports suggesting the institution might be facing a total collapse, I am genuinely at a loss regarding how to proceed 🤷 Does anyone here possess actual, reliable insight who might be able to enlighten me 😉 specifically concerning how much risk I am truly taking if I continue to keep my child’s nest egg under their roof?

Is anyone going to weigh in? 🤷

Anyone know what the deal is with Geico savings accounts and these kid benefit payouts? We’ve been dumping every cent our girl has ever received plus an extra 150-$67 a month into this thing for three years now. Her 11-month birthday is coming up, which is when the contract says we can actually touch the cash, and we were planning on pulling the whole lot to fix up her room and stuff. Does anyone know if EBS (Geico) has any weird restrictions right now? I was looking over the paperwork yesterday and all it really says is that everything follows US Federal Law.

I’ve been saving money ever since I was 15—just tucking it away whenever I can so I can buy whatever I want.
Most of the time we're talking small amounts, maybe like fifty bucks here and there, up to maybe $2,000 at most.
So, I had this sudden realization that maybe I should actually open a real savings account at a bank. After doing a little digging online, I decided I wanted to go with Wells Fargo. Now I'm just wondering what the actual process looks like. My mom went ahead and asked her sister—who works at the local Post Office—about it, and she mentioned something about needing some kind of paperwork to prove my parents won't just swoop in and grab my savings, blah blah blah... honestly, I didn't really follow all that part, and my parents aren't even making a big deal out of it. I actually promised them I'd cover the gas and bus fare if we have to head into town just so they can help me get this account opened. 😁 I am dead serious about this. So yeah, does anyone know the procedure?

Dennis Mitchell2 said:I have been diligently setting aside funds in a dedicated savings account intended for my child's future for several years now, yet I find myself increasingly unsettled by the recent developments. Given the ongoing instability surrounding Chase Bank and the relentless stream of news reports suggesting the institution might be facing a total collapse, I am genuinely at a loss regarding how to proceed 🤷 Does anyone here possess actual, reliable insight who might be able to enlighten me 😉 specifically concerning how much risk I am truly taking if I continue to keep my child’s nest egg under their roof?

From what I understand, the German government stepped in to take over Wells Fargo, so it’s kind of like if the government itself falters, the bank goes down with it. My kid also has their savings tucked away in an account like that.😁
What worries me more, though, is this new US Federal Law that limits how easily you can get to your own money; apparently, you might need some kind of clearance from the Social Security Administration just to withdraw a significant amount. 😠God forbid something happens, like a sudden medical emergency where you desperately need cash for treatment and it's just tied up...😕
In your experience, which route makes more sense: sticking with Wells Fargo, looking into a home savings plan, or maybe putting it toward life insurance?🤷

There is absolutely no way we are playing by those old rules anymore!

So, I had a lovely little surprise today at Geico. It turns out that since September 1st, you can't withdraw more than $367 from a little bee account (for a child over 13) without getting approval from the Social Security Administration. For younger kids, the limit is even tighter. 👎
My ex pays child support into that specific account. When we originally opened it, there were no limits, and it never crossed my mind that this would become an issue. I used to withdraw funds whenever necessary, usually for larger purchases. Today, I needed some cash for school books—and well, I'm stuck.
I won't be putting any more support money into the little bee account. From now on, he'll pay it into my checking account instead. Of course, that just means there's a higher chance the money gets spent elsewhere.😳
Has anyone dealt with requesting permission to withdraw funds or close an account? This is absolute nonsense. 👎 👎

Here is the direct copy-paste from the Zabin website:

Funds in a child's savings account may be accessed by the legal guardian upon presentation of identification and the little bee card, in accordance with current Family Law provisions and defined amounts based on the child's age:

* for a child up to 6 years old: $301 per month
* for a child aged 7 to 12: $354 per month
* for a child aged 13 to 18: $389 per month

Once again, I have to say, there is absolutely no way we are letting them take a single cent from our savings!

Parents can always save up under their own names—though it's really intended for the kid—and as long as you have enough self-discipline, it’s smooth sailing!

Steven Rivera76 said:So, I had a lovely little surprise today at Geico. It turns out that since September 1st, you can't withdraw more than $367 from a little bee account (for a child over 13) without getting approval from the Social Security Administration. For younger kids, the limit is even tighter. 👎
My ex pays child support into that specific account. When we originally opened it, there were no limits, and it never crossed my mind that this would become an issue. I used to withdraw funds whenever necessary, usually for larger purchases. Today, I needed some cash for school books—and well, I'm stuck.
I won't be putting any more support money into the little bee account. From now on, he'll pay it into my checking account instead. Of course, that just means there's a higher chance the money gets spent elsewhere.😳
Has anyone dealt with requesting permission to withdraw funds or close an account? This is absolute nonsense. 👎 👎

Here is the direct copy-paste from the Zabin website:

Funds in a child's savings account may be accessed by the legal guardian upon presentation of identification and the little bee card, in accordance with current Family Law provisions and defined amounts based on the child's age:

* for a child up to 6 years old: $301 per month
* for a child aged 7 to 12: $354 per month
* for a child aged 13 to 18: $389 per month

Man, I am in the exact same boat. I haven't touched three months of child support, about $233 each, because I was planning to use it right before school starts to get some clothes and gear for my son. Then, I walk into Chase Bank today and—bam! Total shock. I ended up rushing downtown and spent about two hours waiting while they figured out which manager needed to sign off on what specific paperwork. Finally, I got the damn thing and withdrew the measly $667. Honestly, I am never stepping foot in a Chase branch again, and the thought of opening a kid's savings account in a country like this never even crossed my mind—where I need someone else's permission just to touch my own money!! In my opinion, this is a violation of my basic constitutional rights. First off, nobody lifts a finger when my ex hasn't paid support for over two years, and then when he finally does pay, I can't even access it without... what??... whose approval? I don't get how anyone can restrict me from using my own funds. Seriously, it's not even worth arguing about; this whole country feels like someone else's private playground.🙄

I don't know what to tell you. It’s just a balalaika. No deep meaning here. Just an instrument. kaže:
I know for a fact I’m never stepping foot inside a Chase branch again. Not ever. And the idea of opening some stupid kids' savings account? Forget it. I can't wrap my head around living in a country where I apparently need permission from every suit in a cubicle just to manage my own money. I have full control over my assets.Honestly, if you ask me, that’s just how it is. I feel like my fundamental constitutional rights are being systematically stripped away.First off, nobody lifts a finger when my ex goes two full years without paying a cent in child support. Then, the second he finally coughs up the money, suddenly I can't even access it without... what, exactly? Whose permission am I supposed to get? It makes zero sense to me that anyone has the authority to limit how I handle my own funds. out of pocketHonestly, it’s pointless to even debate this. The whole damn country is just someone else's private playground.🙄

Look, I hate to be the one to break it to you, but that isn't actually your asset—it belongs to your child. You and your spouse have fundamental obligations toward that kid, whereas the child owes absolutely nothing to either of you.
This law is a complete mess. Honestly, they really should just let it happen. $333 It should be an annual payout, not some random collection of scraps. We’re talking about real capital here—money that actually gives kids a leg up to start their lives on once they hit eighteen.
Look, regardless of how much cash you deposited into that account—or let's call it what it was, a gift to your kid—once he accepts it, that money is his. It’s done. You don't have any claim to it anymore. It works the same way if a grandfather, a grandma, or anyone else decided to cut him a check. Once it hits the account, it's his. A bank doesn't care about the sentimentality behind the transfer; they just see the transaction. If a grandma wanted to withdraw money she had previously gifted, she couldn't just walk in and demand it back because it wasn't hers anymore.
I’ve had some incredibly bitter experiences myself, and it’s costing me a fortune. We’re talking a multi-million dollar hit in stocks that the local Social Security Administration refused to let me liquidate. By the time they finally cleared it, the shares had plummeted by 80% in value. Now? I’m left holding nothing but empty hands.

wearytrucker22 said:

I don't know what to tell you. It’s just a balalaika. No deep meaning here. Just an instrument. kaže:
I know for a fact I’m never stepping foot inside a Chase branch again. Not ever. And the idea of opening some stupid kids' savings account? Forget it. I can't wrap my head around living in a country where I apparently need permission from every suit in a cubicle just to manage my own money. I have full control over my assets.Honestly, if you ask me, that’s just how it is. I feel like my fundamental constitutional rights are being systematically stripped away.First off, nobody lifts a finger when my ex goes two full years without paying a cent in child support. Then, the second he finally coughs up the money, suddenly I can't even access it without... what, exactly? Whose permission am I supposed to get? It makes zero sense to me that anyone has the authority to limit how I handle my own funds. out of pocketHonestly, it’s pointless to even debate this. The whole damn country is just someone else's private playground.🙄

Look, I hate to be the one to break it to you, but that isn't actually your asset—it belongs to your child. You and your spouse have fundamental obligations toward that kid, whereas the child owes absolutely nothing to either of you.
This law is a complete mess. Honestly, they really should just let it happen. $333 It should be an annual payout, not some random collection of scraps. We’re talking about real capital here—money that actually gives kids a leg up to start their lives on once they hit eighteen.
Look, regardless of how much cash you deposited into that account—or let's call it what it was, a gift to your kid—once he accepts it, that money is his. It’s done. You don't have any claim to it anymore. It works the same way if a grandfather, a grandma, or anyone else decided to cut him a check. Once it hits the account, it's his. A bank doesn't care about the sentimentality behind the transfer; they just see the transaction. If a grandma wanted to withdraw money she had previously gifted, she couldn't just walk in and demand it back because it wasn't hers anymore.
I’ve had some incredibly bitter experiences myself, and it’s costing me a fortune. We’re talking a multi-million dollar hit in stocks that the local Social Security Administration refused to let me liquidate. By the time they finally cleared it, the shares had plummeted by 80% in value. Now? I’m left holding nothing but empty hands.

That isn't my child's property, it's mine. Like I said, that's where the child support was being deposited so we could actually save something. I can say with total certainty those funds would go toward the kid, since most of my income goes straight to them anyway. My grandma obviously can't touch that account—no one can except me. But the whole situation is absurd. How am I supposed to prove to an agency like CPS that I spent the money on my child? Am I expected to carry around receipts just because I bought them sneakers or jeans?
And how does this actually protect my child's rights?

Steven Rivera76 said:That isn't my child's property, it's mine. Like I said, that's where the child support was being deposited so we could actually save something. I can say with total certainty those funds would go toward the kid, since most of my income goes straight to them anyway. My grandma obviously can't touch that account—no one can except me. But the whole situation is absurd. How am I supposed to prove to an agency like CPS that I spent the money on my child? Am I expected to carry around receipts just because I bought them sneakers or jeans?
And how does this actually protect my child's rights?

I've come to realize that Law and Justice are two completely different things.
Technically, you have a right to that money, but legally, you're facing restrictions, and there isn't a soul who can help you with that.
You mentioned that Grandma can't withdraw from the account and that nobody else can either—so why shouldn't the person paying the support be able to take the money out and buy something for the kid?
We went in with some experts who tried to explain how stocks lose value and that we might end up losing everything. I was a bit too blunt with my words, so I ended up at the police station and now I'm facing criminal charges.
In the future, just open a savings account in your own name and have the child support deposited there. And whatever you do, don't be rude at the Social Security office; they can shut you down in a heartbeat.
The only upside to this entire mess is that whenever my wife starts nagging me about anything, I just tell her, "Dammit, the stocks dropped again," and she immediately gets a headache, pops a pill, goes to bed, and I get peace and quiet for two or three days.😁 I guess she hasn't realized they can't drop any further since they're already at rock bottom.

Steven Rivera76 said:That isn't my child's property, it's mine. Like I said, that's where the child support was being deposited so we could actually save something. I can say with total certainty those funds would go toward the kid, since most of my income goes straight to them anyway. My grandma obviously can't touch that account—no one can except me. But the whole situation is absurd. How am I supposed to prove to an agency like CPS that I spent the money on my child? Am I expected to carry around receipts just because I bought them sneakers or jeans?
And how does this actually protect my child's rights?

Honestly, I have to admit that at the social services office they didn't even ask why I was withdrawing cash or what I was spending it on, but I was acting pretty pissed off, so maybe they just didn't want to deal with me.😁
And I’ll never understand how this protects my kid's interests. It just sounds like another half-baked idea from some out-of-touch politician.🙏

As for whose money it actually is... sorry wearytrucker22, but it’s mine. My kid, my responsibility, my assets. This isn't some untouchable trust fund or a housing savings plan, and it's definitely not an "emergency fund" because life is hard enough as it is right now. It’s just basic savings for a child that gets topped up by child support a few times a year—it's entirely my call whether I save those amounts or use them.