What options for High-Yield Savings are available for under 18 year olds?
February 25, 2009 by How Savings Bonds Work
Filed under High Yield Investing
Can you answer Matt B’s question about Bonds?:
My younger sister was recently given some money from a relative and I am interested in helping her setup a High-Yield Savings Account to hold the money in, as opposed to our normal bank’s savings account. What are my options due to her age (an account cannot be opened in her name obviously)?
My younger sister was recently given some money from a relative and I am interested in helping her setup a High-Yield Savings Account to hold the money in, as opposed to our normal bank’s savings account. What are my options due to her age (an account cannot be opened in her name obviously)?
Can I open one on my name and list her as beneficiary? Or is there a bank that will allow me to open one online under her name?
Thank you all in advance for your answers and advice.
Best High Yield Savings Accounts
Bonds Feedback: Call around to ask about % rates on Certificates of Deposit. They are like a savings, but the money is locked in and you can’t get the interest until the time allotment you contracted is up. They have different contract times such as 6months, 18 months and 2 years. Try a 6 month one. The average I’ve seen is 4.25% which is much better than most regular savings accounts at 2%. Of course the longer you allow the bank to use your money, the high interest rate you can get on your “CD” as it is commonly refered as. You can always get your money out, but should absolutly need it, you will loose all the interest accrued as a penalty. The money is safe, and guaranteed at it’s original deposit at anytime. Money market accounts are also a pretty safe way to go, with even higher return.
ADDED* you can never open any bank accounts or contracts over the phone. Signatures are always needed. Ask your bank how you can help your sister with financial matters being an adult. She doesn’t need to be present to sign because as a minor, her signature means squat on contracts.