How does a savings account works?

Question

I'm 16 and I want to start a savings account. I asked my dad and he said that I need $1000 to open one. Is he for reals? He also said that I have to have $2000 in it continuously. If it's lower than $2000 then the bank deducts interest and My money lessens. It this really how it works or is my dad just lying?

Answer 1

Most banks require only $1 to start an account. WAMU has a great free checking product that is only available online that comes with a high interest savings account.  Check out http://www.bankaround.com to find a bank in your area.

Answer 2

The right people to ask, are the banks. They are all different. Many offer youth savings acounts with no fees (in NZ anyway). Talk to your banks.

Answer 3

no he is wrong. you can open up a account online with many banks with as little as 10 dollars

Answer 4

With ING you can open an account with $100 and there is no minimum balance requirement.  No matter how much you have in the account,. they pay YOU interest every month.  

www.ingdirect.com

Most banks have special rates for students.  They don't ever deduct interest (they pay you that), but they might deduct monthly fees, it depends on the bank.