Which is the best way for saving money in my kid's name?

Answer 1

Under the Universal Gift to Minors Act, you can give your child assets in a savings account, stock fund, savings bonds, etc, that have the tax advantage of being able to grow tax-free up to a certain limit. The downside: once your child turns 18, the account is his/hers to do with as they please. There's no guarantee they will use it for higher education.

You can also participate in a state-sponsored college savings program. You are the owner of the account, not the child, and you can deduct contributions from your state income taxes. The money can be used for higher education expenses or a first-time down payment on a house. If the designated child doesn't use it, you can transfer it to another child.

I have both for my kids. Since the stock funds in their names vastly outperform the college savings fund, I plan to keep the stock funds until the children are older to maximize profit. Then we'll rollover the funds into the college-savings program before the child turns 18 to prevent them from using the money frivolously.

Each state is different, so check with a tax advisor.

Answer 2

Well the answer is simple u have to save money. but putting them in bank will not be of great help. There are head start saving schemes where u pay annual premiums and get interest on them.they work because u have no risk attached to them(like in mutual funds), u can go for HDFC education plan.
This will be a great plan and execute it because it is ur responsibilty. I congratulate u on taking the first step.

Janmeet Singh
Sports Manager
IYSA

Answer 3

You can create a trust which has beneficial interest vested in your kid. The investment can be made by way of Systematic plan in mutual fund. Alternatevly you can also buy an insurance policy which matures when your kid goes for college.....

Deepak ([e-mail])

Answer 4

Get the kid a savings account and never let him know till he or she is ready for college.

Answer 5

Invest in a good mutual fund, particularly if they have a scheme exclusively for children. Join their systematic investment plan and invest a fixed amount every month.

Answer 6

Get a 529 account because it stays in your control but can be used for their education expenses or any other child.

Answer 7

savings bonds. they will double in value over about 12 years typically, and you can make it so no one but your child can cash them