[USER]

We have a little money saved up for each of our kids (ages 14 and under), in a savings account for each of them, and add a little each year.

It kills me to see each account make $0.08 per year on interest.

Are there any smarter ways to save/invest for them? Our oldest has a 529 account, but not sure that’s the best option.

Thanks so much for any advice!

[Terry]

Ally Bank is online and easy to sign up for. It is a High Yield Savings Account.

[Rachel]

There are lots of options with low risk and 4% or more returns. CDs and some savings accounts (google for what’s current and verify they’re ligit).

[Mary]

I would do the high yield savings account also. I got a better rate for the 7 month one, so I do have to be aware of the time so I can tell the bank if I want to reinvest in the 7 month or 13 month one.

Not sure if there is a minimum amount needed to start one.

Call your bank or check online, or go in and talk to them.

[Susan]

If you aren’t using the money a good investment might be a CD. Check with local banks to see what they have to offer.

My Dad recently started CD’s for 6 months with almost 5% interest.

Then he invested them in another one. It adds up fast.

[Patricia]

Look at how often the interest is compounded on the account. My best paying savings account is through Ally & it compounds daily.

While my capital one compounds monthly & the one I have with my credit union only compounds quarterly.

[Annette]

I don’t know about 529 accounts and while High Yield Savings are.not doing as well as they were still. 4.44 interest is good stuff and the money is safe.

You can also look into CDs but beware the money is tied up.

[Kirsten]

I would also combine the money so it can earn more with the understanding it will be split in the future

[Tasmin]

Check out CD’s. We have one where I work the is a variable rate that fluctuates with the market, but it is only a 12 month and you can add to it in certain increments without extending the maturity date.

Also, money markets. They tend to have a higher rate than your standard savings.

I even have an online account that has a rate of 3.85 APY right now that is just a savings.

Just make sure that you do your research and that anything online is insured through the FDIC or the NCUA.

Also, talk with a financial advisor.

Some credit unions have them available to members for free so start there if you can.

[Susie]

We just bought a 1 year CD at Wings Credit Union with 5.1% interest. No minimum.

Not sure where you are located or if you have Wings near you, but it’s my suggestion non the less.

lol

[Christy]

If this money is for their education then I would do 529’s for all the kids.

It can be used for college, trade schools, anything educational including laptops, ect.

It grows and depending on your state you also get a nice little tax break for what you put in there.

[Darla]

We did the following for our daughters who are now in their 20’s.
Local bank – savings $500 max

UTMA – $50/mo/child. They were able to use this money for all high school activities/expenses and their college computers.

529 – $50/mo/child. Grandparents also contributed.

[Ancella]

My kids’ money is in CDs through a credit union I’ve been with a long time and thru Capitone.

I feel like those are risk free and get way better return than savings accounts

[Mary]

Fyi – Urgent beware of scams! Remember to do the investing yourself and do not hand over any money!! to anyone else. This meand never gives yur security numbers!! and never give accountant numbers!!

No passwords!!

Nothing! Nor give cash To anyone to invest!!. Way too many well meaning theives out there!

You can do this at a bigger company Like fidelity or a bank but do not give To any individual. And?

If you use a financial planner, they must be fiduciary because that requires them to be accountable for all the losses! But I still will not give them access to your cash!

And they get a big chunk and bonus from any life interest annuity and even more commissions and bonuses from whole life insurance policies!

So instead of buying some policy/annuity etc& loosing $$ first day cuz u r giving a big chunk of it to some idiot! do not buy!

Good luck!

[Author]

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