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pjay
YAY! I CAN WRITE HERE....
Member since 5/07 1551 total posts
Name:
PJAY
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baby bank account UPDATE SEE BOTTOM OF MY POST
I am in search of opening a savings account/ cd for baby. it will be in his name (mine name on account too) and only used on special occasions (hopefully when he is in college but who knows w/ this ecomony)!
any good rates or accounts u guys can recommened? we just had his christening and i want to start it w/ his gifts!
xxxxxx
well i dont know if the bank.. FIRST NATIONAL BANK OF LONGISLAND
is near any of u... mine is in locust valley (they have 30 something branches)
but... they have a custodial bank account for children and for 3 months the rate is 5%. after that it takes on the current rate of a savings account.... 5% is pretty good for 3 month!!!!!!!!! i opened 1.
Message edited 5/29/2009 3:44:58 PM.
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Posted 5/27/09 10:32 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
SweetT
LIF Adult
Member since 4/06 1305 total posts
Name:
Ali
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Re: baby bank account
I think you should consider a 529 College Account.
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| Posted 5/27/09 10:35 AM |
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pjay
YAY! I CAN WRITE HERE....
Member since 5/07 1551 total posts
Name:
PJAY
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Re: baby bank account
Posted by SweetT
I think you should consider a 529 College Account.
huh... never heard of it, i will research! thanks....
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| Posted 5/27/09 10:40 AM |
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eddiesmommy
best buds!
Member since 5/09 11524 total posts
Name:
Melissa
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Re: baby bank account
we opened a 529 for DS too. You also need to look into how it will affect his application for financial aide down the line in the college years, if he should so need it. Depending on the sum in the acct 18 years from now, it can impact his eligibility for FA.
Message edited 5/27/2009 11:00:55 AM.
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| Posted 5/27/09 10:40 AM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: baby bank account
We have a 529 account as well as a CD account. I would ask at your bank, the rates are pretty low everywhere right now anyway.
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| Posted 5/27/09 10:41 AM |
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aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
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Re: baby bank account
We have a 529 college account that my husband and i contribute to every month (automatically transferred).
But we also have a savings account for ds as well that will be his to do with. 
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| Posted 5/27/09 10:43 AM |
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chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
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Re: baby bank account
We opened a 529 for DS that we contribute to monthly.
I also linked an ING account for him to my account so I can deposit any gifts he gets.
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| Posted 5/27/09 10:46 AM |
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pjay
YAY! I CAN WRITE HERE....
Member since 5/07 1551 total posts
Name:
PJAY
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Re: baby bank account
did u all open it online.... ? or can i do it at bank..?
i found this website...
https://uii.nysaves.s.upromise.com/
is this what u used?https://uii.nysaves.s.upromise.com/
Message edited 5/27/2009 10:48:30 AM.
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| Posted 5/27/09 10:47 AM |
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chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
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Re: baby bank account
Posted by pjay
did u all open it online.... ? or can i do it at bank..?
i found this website...
https://uii.nysaves.s.upromise.com/
is this what u used?https://uii.nysaves.s.upromise.com/
Yes that's the link.
I did everything online.
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| Posted 5/27/09 10:51 AM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: baby bank account
we have a regular savings account and a CD for our son in his name (his Christening money went in it).
We did not do a 529. Our accountant & lawyer suggested not to. A 529 can negatively affect the amount of financial add your child may receive for college, as a standard account or CD won't (you can transfer it, close it, etc as a 529 you cannot as easily do).
Also, god forbid something arises down the round (medical, etc) and you need access to the money, its easier with a traditional account.
Hopefully rates will go up slowly again (I hope).
Message edited 5/27/2009 10:58:30 AM.
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| Posted 5/27/09 10:54 AM |
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lovemy2boys
LIF Adult
Member since 10/07 3915 total posts
Name:
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Re: baby bank account
I just put his $ in a seperate account, not a 529 (what if he doesn't go to college) and not in his name. I want him to use the money for something good , not just waste it so that's why I won't put his name on it
everything goes into this account, even the $ I got for my shower went to him
Message edited 5/27/2009 10:58:14 AM.
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| Posted 5/27/09 10:57 AM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: baby bank account
Posted by kerrycec03
we have a regular savings account and a CD for our son in his name (his Christening money went in it).
We did not do a 529. Our accountant & lawyer suggested not to. A 529 can negatively affect the amount of financial add your child may receive for college, as a standard account or CD won't (you can transfer it, close it, etc as a 529 you cannot as easily do).
Also, god forbid something arises down the round (medical, etc) and you need access to the money, its easier with a traditional account.
Hopefully rates will go up slowly again (I hope).
I totally agree w/ this- we have DD's money in a CD and an ING account as well.. then we took some of her money and bought a bunch of Ford stock for her when it was hovering near $1- which was a risk- but hopefully a good one!
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| Posted 5/27/09 11:15 AM |
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cjik
Welcome 2010!
Member since 2/06 8879 total posts
Name:
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Re: baby bank account
I would look into CDs--Savings Accounts are getting almost no interest at all right now. CDs aren't much better, but there is a little more.
You know, we were going to open a 529. But we can't get a straight answer on what happens to this money if he doesn't go to college. We would love to have DS go, but it's possible he will not, and I'm not forcing him. Some told us we could take the money out and reinvest, no problem, others have told us we would pay penalty fees that are steep.
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| Posted 5/27/09 1:12 PM |
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shellybean
Love my Baby Boy!
Member since 4/07 5191 total posts
Name:
mich
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Re: baby bank account
we have a savings/money market account, we put gifts in it and also add a percent of our paycheck monthly, its amazing how fast it will grow! We also bought some stocks in his name...
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| Posted 5/27/09 1:30 PM |
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PRETTYPINK
LIF Toddler
Member since 7/06 393 total posts
Name:
A
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Re: baby bank account
I opened a CD. At the time the 6 month CD had the best rate. It has now expired. I cashed it in waiting for his first birthday and will then just get another one. I hold money is his piggy bank until I can start a new one. The one thing I hate is that you can't add money at any point. But the rates were much better then a regular savings. And I am not locked into any one bank after they expire, I can shop the rates.
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| Posted 5/27/09 1:31 PM |
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A3CM
Avatar Title
Member since 9/08 3762 total posts
Name:
Mommy
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Re: baby bank account
Posted by kerrycec03
we have a regular savings account and a CD for our son in his name (his Christening money went in it).
We did not do a 529. Our accountant & lawyer suggested not to. A 529 can negatively affect the amount of financial add your child may receive for college, as a standard account or CD won't (you can transfer it, close it, etc as a 529 you cannot as easily do).
Also, god forbid something arises down the round (medical, etc) and you need access to the money, its easier with a traditional account.
Hopefully rates will go up slowly again (I hope).
ITA with this.. my accountant and financial planner said 529s are HORRIBLE unless you are border poverty level. Also NOT every child goes to college.
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| Posted 5/27/09 2:13 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: baby bank account
Posted by mommyonli
Posted by kerrycec03
we have a regular savings account and a CD for our son in his name (his Christening money went in it).
We did not do a 529. Our accountant & lawyer suggested not to. A 529 can negatively affect the amount of financial add your child may receive for college, as a standard account or CD won't (you can transfer it, close it, etc as a 529 you cannot as easily do).
Also, god forbid something arises down the round (medical, etc) and you need access to the money, its easier with a traditional account.
Hopefully rates will go up slowly again (I hope).
ITA with this.. my accountant and financial planner said 529s are HORRIBLE unless you are border poverty level. Also NOT every child goes to college.
what does your income level have to do with it 
I did the research and a 529 plan works best for us. If Mikayla winds up not going to college, we can use the money for a sibling
You have to do what works for you and do your research 
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| Posted 5/27/09 2:30 PM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: baby bank account
to answer your questions:
what does your income level have to do with it
**The 529 plan will count as "income" your child has and they will use it against them when applying for financial add. So, when your child is applying, if their is 10K in the 529 that is pre-designated for College Tutition its worse than them having nothing. Make sense?
Personally, the money in my DS's account is "his" money and I wouldn't feel comfortable transfering it to a sibling just because he doesn't go to college.
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| Posted 5/27/09 2:41 PM |
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Re: baby bank account
Posted by kerrycec03
we have a regular savings account and a CD for our son in his name (his Christening money went in it).
We did not do a 529. Our accountant & lawyer suggested not to. A 529 can negatively affect the amount of financial add your child may receive for college, as a standard account or CD won't (you can transfer it, close it, etc as a 529 you cannot as easily do).
Also, god forbid something arises down the round (medical, etc) and you need access to the money, its easier with a traditional account.
Hopefully rates will go up slowly again (I hope).
There are pros and cons to 529s and regular accounts. I just wanted to point out that this is not correct. I am a CFP (Certified Financial Planner) and work for a large investment firm. 529s DO NOT affect the amount your child can get in financial aid because the money is in your name. The child is the beneficiary only. However, a bank account in their name (like a savings account that several people have commented on here) is in the child's name with you as a custodian and that DOES affect financial aid.
Some Pros to 529:
Tax Free Growth of Assets for college
Professional Money Management
Does NOT affect financial aid
Some Pros to Savings Account:
Money earmarked for kid for whatever they/you want (car, house, wedding, etc).
Cons to 529:
Money is for college only (however you can change the beneficiary to another kid or relative or withdraw with penalty)
Cons to savings account:
Does affect financial aid
Must pay taxes
Once kid is age of majority they can do whatever they want even if you don't think they're mature enough yet
Great site for info on 529's: Saving For College
Also, for our DD, we opened a 529 because she will go to college.
For my niece and nephew we opened a custodail brokerage account because we do not know if they'll go to college (their parents did not go)
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| Posted 5/27/09 2:41 PM |
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randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
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Re: baby bank account
you can do a high yield savings account with ING. You will need to open a bank account at your regular bank to link it to though. This is what I did for Sasha.
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| Posted 5/27/09 2:55 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: baby bank account
Posted by kerrycec03
to answer your questions:
what does your income level have to do with it
**The 529 plan will count as "income" your child has and they will use it against them when applying for financial add. So, when your child is applying, if their is 10K in the 529 that is pre-designated for College Tutition its worse than them having nothing. Make sense?
Personally, the money in my DS's account is "his" money and I wouldn't feel comfortable transfering it to a sibling just because he doesn't go to college.
I guess it is whatever works for you. For us, I hope that my dd does go to college...we will instill the importance of this in her at a very early age. We do have a SMALL amount of money in bonds etc that she can do what she wishes with
I do see what your are saying and it goes back to "different strokes"..... 
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| Posted 5/27/09 3:16 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: baby bank account
Posted by SeptemberBride03
Posted by kerrycec03
we have a regular savings account and a CD for our son in his name (his Christening money went in it).
We did not do a 529. Our accountant & lawyer suggested not to. A 529 can negatively affect the amount of financial add your child may receive for college, as a standard account or CD won't (you can transfer it, close it, etc as a 529 you cannot as easily do).
Also, god forbid something arises down the round (medical, etc) and you need access to the money, its easier with a traditional account.
Hopefully rates will go up slowly again (I hope).
There are pros and cons to 529s and regular accounts. I just wanted to point out that this is not correct. I am a CFP (Certified Financial Planner) and work for a large investment firm. 529s DO NOT affect the amount your child can get in financial aid because the money is in your name. The child is the beneficiary only. However, a bank account in their name (like a savings account that several people have commented on here) is in the child's name with you as a custodian and that DOES affect financial aid.
Some Pros to 529:
Tax Free Growth of Assets for college
Professional Money Management
Does NOT affect financial aid
Some Pros to Savings Account:
Money earmarked for kid for whatever they/you want (car, house, wedding, etc).
Cons to 529:
Money is for college only (however you can change the beneficiary to another kid or relative or withdraw with penalty)
Cons to savings account:
Does affect financial aid
Must pay taxes
Once kid is age of majority they can do whatever they want even if you don't think they're mature enough yet
Great site for info on 529's: Saving For College
Also, for our DD, we opened a 529 because she will go to college.
For my niece and nephew we opened a custodail brokerage account because we do not know if they'll go to college (their parents did not go)
Thank you for this post, these are important facts and I appreciate the post....
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| Posted 5/27/09 3:17 PM |
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BeachMom
Love my 4 kiddos!
Member since 11/08 8346 total posts
Name:
Kristie
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Re: baby bank account
Posted by kerrycec03
we have a regular savings account and a CD for our son in his name (his Christening money went in it).
We did not do a 529. Our accountant & lawyer suggested not to. A 529 can negatively affect the amount of financial add your child may receive for college, as a standard account or CD won't (you can transfer it, close it, etc as a 529 you cannot as easily do).
Also, god forbid something arises down the round (medical, etc) and you need access to the money, its easier with a traditional account.
Hopefully rates will go up slowly again (I hope).
We didn't open up a 529 for the same reason. Honestly, i just bought my DD I bonds from the bank, they go up and down with inflation and are still earning more than most savings accounts and theres really no record of them. So you can just keep them and cash them in when you need them.
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| Posted 5/27/09 3:20 PM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: baby bank account
Can't a 529 be used for ANY education? Private school, vocational scool, even Adult Ed?
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| Posted 5/27/09 3:21 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: baby bank account
Posted by krissy888
I just put his $ in a seperate account, not a 529 (what if he doesn't go to college) and not in his name. I want him to use the money for something good , not just waste it so that's why I won't put his name on it
everything goes into this account, even the $ I got for my shower went to him
It wouldn't be "wasted" You would have to pay tax on it if you used it for reasons other than college.
Also-you can have the 529 in someone else's name to avoid the financial aid implications...like Grandparents
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| Posted 5/27/09 3:39 PM |
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