Comments on: What is the best type of savings account to open for a child? http://www.cashorcredit24.com/what-is-the-best-type-of-savings-account-to-open-for-a-child Find answers for all your financial problem Thu, 03 Mar 2011 21:38:38 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: anniewalker http://www.cashorcredit24.com/what-is-the-best-type-of-savings-account-to-open-for-a-child/comment-page-1#comment-56 anniewalker Thu, 02 Jul 2009 05:40:51 +0000 http://www.cashorcredit24.com/what-is-the-best-type-of-savings-account-to-open-for-a-child#comment-56 Sharebuilder will let you buy stock for a child. This is a great way to start a child's savings. Scottrade probably has something similiar. You set up your account as a Custodian Account. http://www.sharebuilder.com/about_us/new/welcome2/faqs.htm The ShareBuilder Custodial Account is an investment account created for the benefit of a minor. Custodial accounts are opened under the Uniform Transfer to Minors Act (UTMA), or the Uniform Gift to Minors Act (UGMA) of your respective state. The minor is the owner of the account and its assets. However, a custodian must manage the account until the minor reaches the age of distribution in accordance with the laws of the state under which the account was established. Earnings (up to a certain amount) will be taxed at the minor's rate. Note: State laws may restrict who can open a custodial account. Please consult a financial advisor for additional information on custodial account restrictions and tax reporting questions. Also, there can only be one minor and one custodian for each ShareBuilder custodial account. On another note, have you looked into a high yield savings or money market account? You can compare rates by state or overall (to include online banks) here: http://www.bankrate.com/brm/rate/brm_mmasearch.asp The best rate near me (Alabama) is 5.36 (APY) at AmTrust. The overall best rate is through Geauga Savings Bank Newbury, OH but you have to have $25,000 to open an account! AmTrust is also the next highest overall bank. I like the high yield savings / money market account better than a stock plan. Good luck! Sharebuilder will let you buy stock for a child. This is a great way to start a child’s savings. Scottrade probably has something similiar. You set up your account as a Custodian Account.

http://www.sharebuilder.com/about_us/new/welcome2/faqs.htm
The ShareBuilder Custodial Account is an investment account created for the benefit of a minor. Custodial accounts are opened under the Uniform Transfer to Minors Act (UTMA), or the Uniform Gift to Minors Act (UGMA) of your respective state. The minor is the owner of the account and its assets. However, a custodian must manage the account until the minor reaches the age of distribution in accordance with the laws of the state under which the account was established. Earnings (up to a certain amount) will be taxed at the minor’s rate.

Note: State laws may restrict who can open a custodial account. Please consult a financial advisor for additional information on custodial account restrictions and tax reporting questions. Also, there can only be one minor and one custodian for each ShareBuilder custodial account.

On another note, have you looked into a high yield savings or money market account? You can compare rates by state or overall (to include online banks) here: http://www.bankrate.com/brm/rate/brm_mmasearch.asp

The best rate near me (Alabama) is 5.36 (APY) at AmTrust. The overall best rate is through Geauga Savings Bank Newbury, OH but you have to have $25,000 to open an account! AmTrust is also the next highest overall bank.

I like the high yield savings / money market account better than a stock plan. Good luck!

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