Author Topic: Child's account  (Read 1764 times)

msafyan

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Child's account
« on: May 03, 2015, 06:30:29 PM »
Hi everyone,

We have a 7 yr old kid with ~20K in a savings account (with almost 0% rate). We want to move it to a CD what should I look for? Rates at my credit union are pathetic (highest is ~0.5%, so it is more than 0%!).
Thanks in advance.

MDM

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Re: Child's account
« Reply #1 on: May 03, 2015, 06:39:22 PM »
We want to move it to a CD what should I look for?

Assuming you are sure you want a CD and have good reasons for that, getting the highest interest for the desired CD length seems appropriate.  You could google   CD rates   and pick from what you find.

Gin1984

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Re: Child's account
« Reply #2 on: May 03, 2015, 06:54:08 PM »
Why not invest some of it, instead of putting it in a CD?

MsPeacock

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Re: Child's account
« Reply #3 on: May 04, 2015, 07:21:05 AM »
If this is college savings you might look into the variety of 529 plans that are available. The one from Iowa is administered by Vanguard and has some very good options and low fees.

catccc

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Re: Child's account
« Reply #4 on: May 04, 2015, 12:59:41 PM »
A second for finding a higher yield, assuming this money is not to be touched for a while.

NY's 529 plan is vanguard and is very low in fees, available to non-residents.  Depending on where you live there may be state tax benefits.  (I get to deduct contributions from my taxable income in PA when I contribute to any state's 529 plan.  NY is one of the, if not the lowest in fees.