i want to set up some kind of account for my new grandaughter now so she will have money for college later or for whatever she wants to spend it on when shes older and also should i put it in her name? Are savings bonds still a good idea? Like buying one every year on her birthday. thanks in advance!!!
2007-12-09 00:53:36 · 8 answers · asked by bunny 1 in Business & Finance ➔ Personal Finance
What I am doing for my 20 month old is saving $100 a month in a bank account. Each time her account reaches $1200, I take $1000 and put it in a CD (certificate of deposit) at our bank. They have a 3 yr CD that has an interest rate of 4.85 %. After the three years, you can take that along with any other money you have and put it in another CD so that it will accrue interest. Whenever she starts working, she has the option of putting the money into an IRA account or she will be able to purchase a car after she graduates from college or use it as a down payment for a house after she graduates from college.
2007-12-09 01:00:51 · answer #1 · answered by Bossy 2 · 0⤊ 0⤋
Life insurance policy that will grow as the child grows then the child can cash it in or convert the policy to something else in the form of life insurance. Protection and Saving for when they get older. IF and only IF the child has a medical problem later in life and cannot get insurance for some reason at least they have this policy to fall back on and could convert without a physical.
Life insurance a good investment to fall back on if the need arises.
2007-12-09 01:00:36 · answer #2 · answered by sandra k 5 · 0⤊ 0⤋
I don't know all the details, but my grandma did this for me when I was born and started with a thousand dollars and put $20 in every holiday and she said it will be well over $3000 when I turn 19 :) So I would say thats pretty nice!
(It was a savings bond)
2007-12-09 00:56:47 · answer #3 · answered by unique_name_01 2 · 0⤊ 0⤋
Savings bonds are always a good idea. Otherwise, consider a College savings account or a "Trust" account. Discuss with you financial institution what your options might be.
2007-12-09 00:57:53 · answer #4 · answered by MYRA C 7 · 0⤊ 0⤋
Savings
2007-12-09 00:55:32 · answer #5 · answered by Levi 4 · 0⤊ 0⤋
The rate of savings bonds in not very good. Certificates of Deposit pay way better here. Keep it in your name in case her parents go wild and take the account. Make note of it in your will, just in case.
2007-12-09 01:02:45 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Consider buying her a few shares of Kid related stock, and get the certificate. Stock like Disney, Toys R us, Mattel. She will begin getting the annual reports, and in a few years might find an interest in investing.
2007-12-09 01:06:02 · answer #7 · answered by jimdotedu 5 · 2⤊ 0⤋
you could set up a trust for her in savings bonds or a
conservative investment.
2007-12-09 00:56:44 · answer #8 · answered by Jerry S 7 · 0⤊ 0⤋