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What's the best savings account for a child?

Is it better to put savings for a child into a special childrens savings account or a normal savings account?

  • i am godfather to my friends newborn baby and i want to know if there are special savings accounts for children or should i just put them into a normal online savings account which has the best rates?

  • Answer:

    Check out Dave Ramsey. He has a wealth of information. You can find him on the web, radio and tv. There are different plans for college funds. You just have to be careful, some of them have stipulations in them that make it where if that child decides not to go to college, they can't get the money. So you have to decide up front if you are only going to give the money to them for college or if you are wanting them to have it when they turn a certain age. There are Mutual Funds and Money Market Accounts that are good. Best of Luck.

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The big difference in children's and adults saving accounts is you don't pay tax on a child's account, but you do on adults accounts, children can't get access to it either, just make sure you shop around to get the best rates, also check out Internet sites of the banks, you tend to get higher interest rates.

peachy505

children's it has a higher interest rate

Jason K

I would go for the one that has the best rates, if the child is not going to be allowed to touch the money until say 18 or so. The best interest rates!

lisa_b

special holds it better but try an education savings or trust fund they are the best

Jeff Hardy's bastard son

the kid one usually has more benefits.......when at your bank...ask the officer...........

richard t

A special children's account, you will usually earn more interests and receive other benefits. The bank I work for has children's account and for every $10 they deposit they get a "young buck" which is a like a dollar bill and kids save them up to buy prizes like toys. A 529 plan would be great to for college savings.

greenconfidence

If you put it onto a typical account, the child can blow it on whatever at age 18. If you put it into an education account, it can only be used for education.

mikala m

There are special child trust funds. I know nothing about those. As it's long term, I'd look at an ISA of some description. You should have specified what country you are in, as different countries will have different accounts. Edit: OK, from your previous questions I'll assume you're in the UK. So ignore the "529" answers, whatever they are. You need to decide if you're going to put money away regularly, or at random, or if it's an account that other family members can add to. All these affect rates and costs.

a special savings account for children

Cinda R

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