creating a savings acct for DD

xctrybride

My daughter has been getting some $, & I'm looking to create a savings acct for her. So I guess I have 2 questions:

1) What's the best type of basic savings acct I can open for her? This will be the type of thing that when an aunt gives her $25 I'll just stick it in there & when she's old enough, she can add $ herself & take out some to buy things she really wants. I could shop around for higher interest rate savings accts or open a money market (with a sizeable initial contribution by us, maybe $5000?)

2) College education savings. This is the confusing one. I DO NOT have much $ to set aside every month. But really want to try & at least save a little. Maybe $100/month? Coverdell acct? 529? savings bonds (which kind)?

?

Any experience/advice would be MUCH appreciated. Thanks!?

hmms

DS has received about $700 from his baptism and other monetary gifts.  We too wanted to do something with it...more for down the road.  I haven't researched what's best at this time, so I just opened a basic savings account for the time being.  I can make small deposits for now, and then we'll need to figure out a long-term plan.  This way the money is not in the house, the checks can be deposited, etc.  Basically - I've bought some time for my lazy-self to do research.

 My parents started a 529 college fund for him through EdVest.

GL!

polkadot_03

we take any money we get for gifts for the kids and deposit it into a 529 fund.  We have ours through fiedlity.  If your state has one, then you also get a tax write off I believe.  Our state's return isn't that good, so that's why we do the fiedlity one.  We had an investment guy my parents use set it up for us, but I don't believe you have to have one to do so.  There is usually a $50 yearly fee for it, if you don't do a monthy min direct deposit.  We do, but we can afford it now. Hopefully we still will be able to swing it in the coming months too.  Two is so much harder to save for than 1.

That money can only be used for college expenses.  I figure that was the best thing to do to help them pay for their college.  Who knows how much it will be in 18 years.  We also do upromise (it basically free money for buying stuff you already use) check it out.  I have had that for about 4 years, and we have got almost $1200 from that alone.  It's very easy and others can sign up for it too for you kids and get more money.

We didn't do the savings accounts, because they return wasn't as good as a 529 fund.  But you can spend that money on anything you want.  But like you said you have to have a pretty good size min to start off with.

Mrs Manners

hmms:

DS has received about $700 from his baptism and other monetary gifts.  We too wanted to do something with it...more for down the road.  I haven't researched what's best at this time, so I just opened a basic savings account for the time being.  I can make small deposits for now, and then we'll need to figure out a long-term plan.  This way the money is not in the house, the checks can be deposited, etc.  Basically - I've bought some time for my lazy-self to do research.

We did the exact same thing.