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Savings account options

What are some other savings options we could set up for our kids, other than a regular savings account? I know there are options for saving towards an education, but the kids are getting money as gifts, so I’d like it to be theirs to do with as they please when they’re older. It would be nice to have it grow more than .01% over the next 10-15 years.

  • Anne
    Feb 14

    Barclays savings account! 2.2% APY, no fees, $1 minimum. Very easy. They have a CD option too.

  • antigrav_kids
    Feb 14

    You might tell the folks giving gifts that savings bonds are still an option. They're not as cool as they once were, you can't walk into a bank and purchase a really cool looking key punch card decorated with a historic building and an old president, (I was a banker's kid who became a programmer, sometimes it shows :) But, you can still get them. online I-Bonds have a small guaranteed return that's adjusted every year to reflect inflation.

  • Joanna
    Feb 14

    For small balances, high yield savings, money market account or CDs. For investments like mutual funds you'll need a minimum balance to make it worthwhile. And you're liable for paying taxes on interest. If taxes are a concern, still consider a 529. I really like the savings bond idea if you want to make them wait for 15 years.

  • Julie
    Feb 14

    I had a cd account when I was little that my parents always put monetary gifts in and matched each gift. It did really well and matured nicely to the point that I was able to cash it in for about half the down payment on our house!! However, I also like Antigrav Kids idea. My great grandmother always gave me savings bonds for every birthday and holiday as a child. My mom recently came across the stack of them when she was cleaning her closet and brought them to me. Each one was for $50 and I don’t remember how many we had in total but my great gran passed away when I was 5 so it wasn’t a huge amount, however I took them to my bank and asked what they were worth and they said if I cashed them all in right then it would be worth nearly $4000, but if I waited about 4 more years it would be more like $4500!!! ChaChing!!! So my plan is to wait it out for the “younger” ones to mature and then i will cash them in and put the $$ into my daughters account. Because what’s mine is hers, apparently (lol).

  • Beatrice
    Feb 14

    I opened a kids savings and a cd for my son both at .3% at capital one cd is 3 years and Kids savings is until 18

  • Jenn
    Feb 21

    I swear by Ally. They're an online only bank so are able to offer higher rates due to minimal overhead costs. Their savings accounts are great but if you're saving for future use, a CD is a better choice. Their interest rates are between 1.80% and 3.10% depending on time and amount. They have a comparison tool for all their CDs, which allows you to compare rates on that type of CD at various banks. Here's one of the options (scroll down to see comparison): https://www.ally.com/bank/raise-your-rate-cd/

  • Tina
    Feb 27

    I second Ally. The best!!