Savings accounts for kids--a bleg
This is a new one for me...our 2 year old received his first gift check. So now I'm trying to figure out what to do with it. We would like to set up a savings account for him to put all future gifts. My first reaction is to set up an ING Direct account in his name. If we fund it with $250, then he'll receive another $25 (and we'll get $10 for the referral). Has anyone else had any experience setting up an account for a minor?
We'd like something that has no fees, pays a decent savings rate, has options down the road for when the amount is more substantial, and be with an institution we can keep for the next decade (I hate moving accounts). I would love to hear about other experiences in setting up accounts for minors. Thanks!
We'd like something that has no fees, pays a decent savings rate, has options down the road for when the amount is more substantial, and be with an institution we can keep for the next decade (I hate moving accounts). I would love to hear about other experiences in setting up accounts for minors. Thanks!
posted by Dwight at
2:35 PM
5 Comments:
Yes, setting up an account at ING is a good idea for the $25 bonus and if you can convert the referrals it'll add another $250 to the account. But the best place to earn interest is at Affinity Bank which pays 10% on kid's saving accounts up to $500.
By
savingadvice, at 11:52 PM
I have no experience with opening accounts for children but is it possible they will require something from the adult and once they determine you are already an account holder, you might not be eligible for the bonus. Just a thought.
Neo
By
vr6trd, at 1:22 AM
I think you would open it up as a 'joint account' with you and your 2 year old. That you'll have physical access to it until your 2 year old can sign money out.
By
Anonymous, at 9:34 AM
Most banks will allow you to set it up in the child's name alone but if you want better control it could be titled as a UTMA (Uniform Transfers to Minors Act) account with you as custodian. There are considerable tax advantages to this if we're talking about a decent sum of money. The downside is, the dough becomes legally the child's when he/she reaches the age of majority.
By
thc, at 3:49 PM
We have two UGMA accounts for our 2 year old, both of which were set up by other people when he was born. They're both at mutual fund companies I wouldn't necessarily have chosen, but don't feel I can monkey with because somebody else set 'em up.
We set up a 529 investment account and a 529 prepaid tuition account when he was a year old. We generally put the odd $50 birthday check in there, but I've been wondering what to do with the little amounts--like the dollar bill my sister sent him in a Halloween card a couple months ago, or the sack of one-dollar coins my poker group gave him as his first "stake". I guess it's time to get a piggy bank.
By
Tiredbuthappy, at 12:07 PM
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