Quote:
Originally Posted by WonderwomanNot
When our kids were young, we opened up mutual funds under Janus and also American Century. We saved for them every year and that money was used for their cars, college, etc.
We now have a grandchild. Would like to open some type of account for her so that her birthday money and holiday money can be saved for her. Her parents already started a 529 account but we want something different.
What would ya'll suggest?
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For the birthday, holiday money open some type of child savings account. Should have no minimum balance so that you can start with $1. Should be no fees for low balance. You may do joint account with you as custodian until the child gets older.
For a grandchild way too soon to have debit card. When they get older could use it at dollar store for school supplies or other items.
Miss the days when you could open this type of account at bank/S&L. Take your child inside to deposit money. Have the teller add deposit in the savings book. Have more fun when account is credited with interest.
A second option could be to open a similar account for I-bonds. Currently have 1.3% base rate + inflation getting to 5.7% for 6 months. Hold it for 5 years with no interest penalty. Maturity in 30 years. Holds 1.3% constant + inflation factor changes every 6 months. Can be used for education expenses later.
Some grandparents used to buy EE savings bonds. Pays 2.7% interest. Guaranteed to double value in 20 years. You need child account to do this.