So I just had a child... Thinking of opening up a bank account under her name and SSN. All the banking threads in FWF that has high interest rates I see are for 18 & over(I think). Anyone have any advice on opening a custodial account with decent rates? could be savings, MMA, CDs...
I already have a 529 setup... but also want to open up a bank acct.
Affinity Bank has a nice one: http://www.affinitybank.com/pb/rates.asp
The Kid's Only Savings pays 10% on the first $500 (then drops to the "gold rate" of less than 1%). You have to open a checking account, but there is a free one that you can open with $100, that has no min. balance. Open it first, then open the Kid's Savings with <$500, and transfer $99 from the checking account over to the Kid's acct on the website.
Note that the Kid's account it truly a custodial, and not joint, so you can't just transfer the money out (even back to the checking account you transfered in from). The custodian has to send a signed letter/fax requesting a check issued to get money out of the account. This really complicated my plan of taking out the interest payments and putting them in an ING or UFB type account for my kid, and just maintaining a $500 balance at Affinity.
ING sometimes has 1 time use $25 sign up bonus codes in newspapers or personal finance mags (Kiplinger's, Smart Money, etc). You can open a joint account with them (put child's name first if you have an ING account to make sure you get the bonus). Their rates aren't the best, but if you put in $1 and let them put in $25, just let it grow on it's own (or move the $25 to UFB or Affinity). You could also 'refer' your child to ING and get him/her a $25 bonus and yourself $10, if you deposit $250 for him/her.
Senior Member - 1K
posted: Dec. 9, 2006 @ 5:44p
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