What is the best type of savings account to open for a child?
I am thinking starting a savings or investment account for my 3 year old son. I would start it with $500 and contribute $30 per month into the account. I was thinking of opening up an account on Scottrade and doing long term bonds or opening up a high interst rate savings account. Any suggestions or thoughts on what may be my best options? 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
