I really need to open bank accounts for my children, and am wondering where to start.
Do I want a savings account or a CD?
Are the online ones (like ING) available with parental guardians? Is there any practical difference in setting up an account for a minor, or by default I would be assigned guardianship?

I'm at a loss of where to start, and want to know how others do it.

Why do you want a bank account to being with? Are you going to need this money anytime soon?

Some take their kids to the bank and they do it with the kid. You might need to make an appointment.

my siblings got accounts as soon as we were born, my kids too.

It depends on how accessable you'd like the money to be. If this is a bar mitzva/wedding/etc fund a CD would work. If its a place to put chanukah gelt and then buy stuff with the money you want an account where you can easily withdraw the whenever you feel like it (not a CD).


From looking at the ING online info "Joint accounts are often opened by married couples or for a parent and child. Both people on the account must have a social security number. The person who is listed as the primary account holder is responsible for any tax implications related to the joint account. Persons under 18 years of age cannot open single accounts."

For a local bank I think the only practical differences with a minor's account is that someone elses name is listed and you may need to sign off on deposts/withdrawls. Once the child turns off age you both will need to fill out some paperwork to get your name off the account.

If you are thinking about a lot of money or stocks etc, you might have to look into UGMA & UTMA Custodial Accounts for Minors info.

1. savings account is currently a better deal than CDs
2. yes you can get a joint account with some internet banks (ING sucks) or get a UGMA custodial account with a company like Vanguard or Fidelity.
3. You would have to set up the account. A minor can't.

Also consider a 529 if you think your kid might want to go to college. (but put it in Bubby and Zeidy's name so Ner Yisroel and Beis Yaakov can't get their grubby hands on it)

We all have joint accounts with my parents. When I need money, my parents transfer me money and then I take it out with my card (when it decides to behave). I only got to open it when I got a summer job and I was getting paid in cheques, and my parents didn't want me to have all this cash lying around, so we opened a joint account. I think it's a smart idea for a kid to have a sense that they have their own money. Just be aware for the future (MAJOR future) that kiddie accounts (most banks have them) have limits on how much money can be taken out/spent per day. You may have to manually (meaning going up to the teller with a passport) and changing it. And even then it doesn't always work. That reminds me, I have to do that again.
I hope that helped. That's from a kid's perspective with a kiddie account still, at the age of 19.

There is currently no reason to open up a CD. There aren't any out there paying much more than you'd get at an internet bank.

maybe she doesnt want to be tempted to touch the money? I dont care either way, but she needs to understand that CDs work different than normal accounts.

CD's seem to be giving the same rates as savings currently. I agree if she can't stop herself from spending the money, she shouldn't have access to it. That's why people do things like using debit cards.

Instead of a 529, I would open an ESA. It's like a Roth but for education, and it's not only for college, nor is it only for tuition. Any school, and any education related expenses qualify. *

*If they qualify.

why and how would they get their hands on 529?



to agent it probably won't matter, but ESA has a maximum of $2,000 yearly.

Thanks for the advice.

I don't think I would touch it, as I don't think it's right to use my children's money, and I want it to be saved for when they are old enough to use it. However, I don't need it to be in a CD or what not due to lack of self-control. I would not spend it freely at all, so either Vanguard (I just got rid of my Fidelity investments) or an account would work.

This is something I want as a long term plan, not a spending account like C&H. I grew up with both investments, bonds, and a savings account that I was later able to draw money from as I got older. I just want to know what is the best place to start for my kids.

What does a max of 2000 for an ESA mean? How much you can put in? Or how much you can take out? I think I have more than that for each kid. Do I want to diversify and split the money among a few options, or just leave it all in one place with the best interest or what?

iirc, it's how much you can put in each year, if i'm not mistaken (i did the whole research of college/high school payment plans, but i have a horrible memory)

i personally opened 529 for college, am planning on opening a plan for high school (which i believe is called ESA, once again if i'm not confusing smth here).

as for regular savings account, i'm really not worried. when she starts working/babysitting/maybe getting chanukah gelt/birthday money, maybe then i'll open a savings account for her just to teach her the ropes.

So if I have $3000, I could only put $2K in the ESA, and would have to put the extra K elsewhere for this year?

On a related note, is it wrong for me to use money that was given to them to pay their tuition which is my responsibilty at least through high school? Or is it given for me to use for them?

that's my understanding re: the money amount. or you can put that extra 1K next year on that account. you should really read up on that, cause there are tax benefits involved. i did 529 through vangard, they do ESA as well. or dig up my thread about it somewhere in "advice" section.

i would have no second thoughts of saving the money given to them for tuition, until they are old enough to want to use them for themselves.

It's $2000 per year, per child for the Coverdell ESA.