(Closed) Baby bank account

posted 7 years ago in Babies
Post # 3
Member
1986 posts
Buzzing bee
  • Wedding: June 2012

I would do a CD if you know you won’t need the money for awhile. 

Is this for the baby or is it money to get ready for baby expenses?

Post # 4
Member
335 posts
Helper bee

What are you specifically looking to save for?  College? Anything else?  Have you looked into a 529 account?  That might be a good option for you.

Post # 5
Member
4824 posts
Honey bee

You might want to think about a combination of both to start.

Have a monthly transfer to a savings and then when you earn a chunk large enough roll it into a CD.

If you plan on paying for college look into a 529 plan for investing the money you earn for baby. (its tax advantaged)

Post # 6
Member
6009 posts
Bee Keeper
  • Wedding: May 2009

You might want to talk to an investor or financial advisor.  There’s a lot of different savings/investment options, depending on what the money is for (e.g. college/school, future home purchase, wedding savings, trust funds, etc…).  Our financial advisor helped us develop a long-term savings plan with a couple different options, and every year for our annual meetings, he’ll just go over what we’re earning and revise our plan (if needed) according to the market.

Post # 8
Member
1477 posts
Bumble bee
  • Wedding: October 2010

Sometimes I wished we were still in the late 80s/early 90s…my mom bought a $100 savings bond for me like once a month from the time that I was born, and with the interest on that, she paid for my college free and clear (actually, I take that back. At the time I went to college (early 2000s) the savings bonds were still earning more interest than a regular savings account so she paid for my school with that money and kept the bond money instead. However, I think those days are over and bonds take something like 18 years to mature now.

Savings bonds and CDs aren’t super aggressive investments, but you don’t want anything too high risk either. I am curious about this as well. I am definitely going to start a savings account for baby (my family generally gives cash for gifts) but I would like to do some more aggressive investing as well.

Post # 9
Member
335 posts
Helper bee

A common misconception about 529 plans is that the money must be used for only an “in-state” college.  This isn’t the case for all 529 plans, while I know it does apply to some.

Again, I’d check into 529s for the tax advantages, or even high interest bearing savings/CDs.  Financial advisor might be your best bet!

The topic ‘Baby bank account’ is closed to new replies.

Find Amazing Vendors