My wife and I had our newborn a month ago, and are trying to open a savings account for her. Initially it is a place to temporarily hold her college savings starter, bit longer term it will be a storage place for allowances, birthday and holiday gifts, etc.
Savings account interest rates suck already - usually a max of .8%. However, as soon as you have a "kid" account, a number of banks seem to cut the interest rate as low as .05%.
At that rate, they are literally taking cash from children because inflation will NEVER be lower than that.
What exactly is the point as a financial product?
Edit: I am not looking for suggestions about 529s, that isn't the point for this account. This isn't college savings. It will be a place to park college starter cash temporarily while we figure out the 529 allocations.
Submitted July 22, 2017 at 09:58AM by truemeliorist http://ift.tt/2gSUH7s
