what kind of account should i open for my one year old daugther for a college savings?

Answer 1

529 plans are great! go into your local bank and talk to a financial adviser and they will really help you. What is does is you put a certain amount away every year and it collects great interest and they can even be used if she doesn't go to college... some interest taken away! Good luck! they will really help you out and congrats on the little one

Answer 2

You know what I did is I went to a local community credit union, because they usually have very competitive rates. I opened an interest earning savings account and I opened a CD at a very good rate and opened it with like 1000.00 dollars and it was a 6 month CD so I couldnt touch it for 6 months then I just kept moving the money into CD's, and whatever I made from that CD I put back into the savings to get more interest and then I put the other 1000.00 into a different CD.
Usually long term CD's have the best interest rates. Some credit unions even offer 5% or 6% its amazing!
Its a lot of work and you have to be on top of it all the time in case theres better rates somewhere else but its well worth it. College is very expensive and you have to make your money work for u.
Good Luck.

Answer 3

I just about bet that the best fixed-interest rate will be a Roth IRA. A Traditional IRA will do the job, too, but there are distribution penalties and taxes that you'll want to avoid if you're drawing it out before you reach age 59 1/2.

I wouldn't "gamble" with my return on investment, with this, because you want to have a definite gain with no problems on this one. That lets out stocks and mutual funds, because those can lose money.

So, with a Roth IRA the money will steadily grow until it's needed and can be withdrawn at any time after 5 years without paying taxes on anything but the interest. You'll want to shop this around with local banks to get the best interest rate. You can have a certain dollar amount taken from your pay checks every week/two weeks/month, (whichever you specify) and deposited into this account. I'd put it in my own name with spouse as beneficiary upon death, then the daughter as secondary benefiiciary.

There are such things as college savings accounts, but you'll want to watch out because some of the rules regarding them are a little tricky, as to who can use the money and so forth.

Hope all goes well!!!

Answer 4

Start a 529 Plan, but understand the rules before you do so. There are some pretty severe penalties if you need to withdraw money early, or use it for a purpose other than college. Many states now have programs, too, that would allow you to "lock in" tuition at today's rates, even though your child won't attend school for more than 15 years.

Answer 5

A regular Savings account may also
help in your situation.

You should look for the best savings account you
can get. Savings accounts earn internet While
this is essentially true,

there are several factors that can
influence the amount of interest
that an individual pays...

and the difference in accounts from
one bank to another can sometimes
be quite large.

You should consult your banker you
can get best savings account for your needs.

Answer 6

Well depending on the money you have to start it, you have options. First you can start a cd if you have a lump sum. Or you can go to your bank and have them open a 529 account. Its a College investment account. You can deposit into it and watch it grow. Another option is to purchase I bonds. I bonds are bought at face value and start accruing interest right away. When she is in college you can cash them in as needed. Sit down with your banker and get the best option for you.
Good Luck and be well!

Answer 7

Try using a cd or bond to get a good start you can put from 100.00 or more and let it mature or gain interest and go from there- I took 300.00 and put it in a 3 year cd and he earned 172.00 and that is a whole lot better than a savings interest amount! Hope that helps and the local banks have alot of info to help also!

Answer 8

529 plan is the way to go. However, not all state plans are the same. There was an article in the WS Journal recently that explained this. Might have to Google 529.

Answer 9

you should open a 529 college savings plan. You can open one through a brokerage firm like fidelity.com or troweprice.com they have the best tax benefits for college savings.

Answer 10

banks often have an acct that is meant for this purpose, but its very little interest earned. I would go to hsbc.com and open a regular savings acct with them, EARN MORE$$$$$