3 Responses to Can Anyone Suggest A High Interest Earning Savings Account That I Can Open For My Newborn Baby?

  1. Randall Parker, MBA says:
    November 27, 2009 at 6:05 am

    I would not recommend a savings account for this purpose. If you want to save for college, you have a number of options. A VUL can be a great vehicle for saving money for a child, since insurance costs are minimal, and you can overfund the policy. This gives you tax-free withdrawals with stock market returns. It also locks-in insurability, which is a nice feature.
    You could also invest in Variable Annuities and/or Mutual Funds, although a VA will not allow withdrawals until retirements, and Mutual Fund returns are taxable annually.
    You can also look at several available education savings plans, but you want to be careful with these, because they can keep your child from qualifying for free money (needs-based scholarships and grants) and low interest loans (government insured), as these accounts are automatically included in “money available for education.” The Mutual Fund would also fall into this category at 60% in the child’s name or at 40% in your name. The VA and VUL are not included, nor is the equity in your personal residence.
    You should speak to a Financial Planner for these and other options. While you are at it, you should also make sure that your own finances are in order for retirement and other needs.
    Good luck, and happy planning!

  2. Cool dude! says:
    November 27, 2009 at 8:12 am

    Never go for an savings account apply for a mutual fund with a fixed demand of money

  3. andy says:
    November 27, 2009 at 12:45 pm

    The best would be a money market or better yet get a mutual fund that is 60% bonds and 40% stocks that will earn around 6-10% per year on average over 18 years.