A brokerage account for a minor. I have one for my 3 year old's savings account.
No Strings High Rate Savings Accounts
- Thread starter alarmguy
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Fidelity's UGMA setup is pretty easy IMO, at least if you have an existing account. The two I've set up were painless and easy to park the core position in SPAXX or FZFXX. Neither of those are a 5% yield though.
4.7-4.8% or so
Yup I'm not sweating the 0.2% or 0.3% under 5%, but get the impression from skimming the thread some people are hunting.
PayPal savings is 4.3%
FDRXX core at Fidelity 4.76% liquid. or this
Call protected 1 month cd
Powell wants to raise em more. Go for it! Saw a 5.35 2 mo. at ALLY Bank
Call protected 1 month cd
Powell wants to raise em more. Go for it! Saw a 5.35 2 mo. at ALLY Bank
| TEXAS REGIONAL BANK | 5.250 at maturity | 07/26/2023 | -- |
So the interest gets taxed based on the kids income instead of yours? And you have full access to the funds? If so, the IRS allows this?
CIT Bank, 4.832% rate, 4.95% APY currently. Minimum $5,000 balance.
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All new issue T-bills have been paying well over 5% for some time - with the additional benefit is if you hold to maturity most people don't have to pay state income tax on the interest.
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JHZR2
Staff member
Lol very true if you are disciplined and save. My 10yo doesn’t think I’m serious when I say they could buy a nice Tesla…
JHZR2
Staff member
Can you just buy those on treasurydirect?
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You can. Or any brokerage account. The one big downside to treasury direct is you can't resell them there if you want out early. You could in theory transfer them to your broker after the fact but its a paper process and takes months supposedly.
However if you already have a T-direct account and know for sure you won't want out early its the same.
I watched this video before I started. Its worth the watch if your inerested in buying T-bills
Yup, CIT Bank is the one.
This is why I titled the thread “no strings”
Clear, straightforward, plain Jane insured savings account with a great rate.
They also offer a no strings high rate savings at 4.60% APY for someone just starting a savings account and doesn’t have the $5000 min.
I’m curious if you use their checking. Bill
Pay works fine using the app but desktop version is messed up trying to add payee’s
Seems like 3 month CD's are still the best from my wheelhouse. Easy, simple, safe. You might find a T-bill that pays a tad more, fine, but for me trade off not worth it. YMMV. Yes T-bills ARE safer.
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I think it's very hard for a child to understand what $1 is, no joke. My son was buying bottled waters for $0.60 at school. The tiny bottles, stubby, not sure how many oz.
I told a buddy and he said dude, we are hemorrhaging money. 3 kids, each spending $300+/mo on school snacks. Not the meal, snacks.
I said get outta here. So he sent me a screen shot. When I was a kid I got a sandwich, rotten lettuce, with pressed chicken roll, bologna, or head cheese. I was not allowed to buy those fancy bbq chips that my classmates did for $0.25. But then again, in my time, the Dept of Agriculture considered ketchup and relish to be vegetables
Make your own Tbill ladder.
JHZR2
Staff member
I’m trying. My 10yo has to do car repair. Partially because of the skills and exposure to doing tangible things, but also to learn the value of work and money.I think it's very hard for a child to understand what $1 is, no joke. My son was buying bottled waters for $0.60 at school. The tiny bottles, stubby, not sure how many oz.
I told a buddy and he said dude, we are hemorrhaging money. 3 kids, each spending $300+/mo on school snacks. Not the meal, snacks.
I said get outta here. So he sent me a screen shot. When I was a kid I got a sandwich, rotten lettuce, with pressed chicken roll, bologna, or head cheese. I was not allowed to buy those fancy bbq chips that my classmates did for $0.25. But then again, in my time, the Dept of Agriculture considered ketchup and relish to be vegetables
We wanted them to have an Apple Watch for example. This allows for autonomy yet the ability to communicate. They had to earn it. Oil changes, transmission service, a major ball joint replacement, etc. Sure they only do the work I think they safely can, but they have to spend time and effort, and do it. And then they earn.
My 6yo gets paid by the number of weeds they pull. This way they can equate work performed to money.
We had one of the school snack issues a few years back. Fortunately we had only funded the account $25, and was wondering why it was only lasting a few weeks instead of months (we generally pack real food to eat, but let them buy a snack). That changed real quick - I can see how kids could go spend overboard really easy….
I don’t use their checking. I’m basically a credit card guy for paying anything I can without added fees. The rest I just direct pay from a local credit union checking account.
Yes I do the same. I don’t use physical checks. I send money from the checking account.
I assume, when you say the word direct pay, you are more direct debit. Meaning you’re giving your checking information to the company for the money to be drafted from the account versus you sending it to them from the account.
I do the same but since I moved money to CIT, I prefer to use their checking instead of my credit union checking to send electronically rather than draft.
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