Best Savings Options For Babies

Save for baby s college.

Best savings options for babies.

529 prepaid tuition plan. This amount must be invested after taxes are taken out but it grows tax free. While it s natural to want to put your baby first don t forget to take care of your own financial future. An esa allows you to invest up to 2 000 per year.

Treasury bonds are a classic option to give a financial gift to a child. Td bank s children s savings accounts are really just an everyday savings account but they waive the monthly maintenance fee and minimum daily balance requirements for savers aged 18 or younger. Coverdell education savings accounts. New parents can begin at a bank or credit union and start a savings account with the minimum balance says greg meyer of meriwest credit union in san jose ca.

Be sure to use tax favored plans starting with an education savings account esa. Most banks and credit unions offer children s savings accounts which parents can co own. If you think higher education is in your child s future consider a 529 savings plan. Ways to save for your kids.

These accounts can help children develop the habit of saving rather than spending all their money. Td bank simple savings. Assuming you just want to sock money away for general use down the road it turns out mom s way like many things in life is the best. The easiest option is to set up a really simple what i like to call a couch potato portfolio from any big bank and invest in an index mutual fund like the s p index says taub.

The best future for your child. Whether you put the money in a high yield savings a brokerage or 529 account depends on when you might need the money and how it will best benefit your child. 529 college savings plans. Nearly two thirds of americans use regular savings or checking accounts to set aside money for their children s education.