We have two types of savings accounts available for our young members.
Under The Ohio Transfer to Minors Act (OTMA), a custodian may want to set money aside for the minor as an irrevocable gift. In this case, the money belongs to the child. If the custodian withdraws any of the money it must be used for the benefit of the child or the child may sue. Upon the age of majority (21 in Ohio), the funds will be turned over to the child. Only one custodian and one child are allowed per account. In the event of the death of the child, the child’s estate will receive the funds. In the case of the death of the custodian, the guardian of the child will name a successor custodian. The child’s social security number is used, and their signature is not necessary.
The other type is a regular share savings account and the child must be old enough to sign their name. The child’s social security number is used and an adult needs to be a joint owner on the account with them.
Both these accounts need $25.00 to be established, and there are no minimum balance requirements to earn dividends, which are posted quarterly.
L.C.E. Federal encourages our families to start saving early, so we have a continuing promotion that we will deposit the first $25.00 for any newborn member up to six months. Funds must remain in the account at least six months.
We also have a great “Savings Reward Program” for our young savers ages Kindergarten through age 15.