/ Ask Terry Questions / MINOR’S SAVING ACCOUNTS


By Terry Savage on December 24, 2015 | Chicken Money

Do you know of any banks that offer some incentive for opening a minor saving account. I know Marquette bank matchs $25 when you open a account for $25. Thanks..

Terry Says:  Different banks may have different marketing offers at any given time.  But you might want to think twice about opening a custodial account for a child.   Remember, when the child reaches the age of majority (18 in most states) the money belongs to him or her!  They can spend it as they like.  Also, if they are applying for financial aid for college, money in custodial accounts weighs far more heavily against the family in the financial aid formula.  You might be better off opening a 529 College Savings Plan.  Money in those plans grows tax free if taken out to use for college, and has less impact on financial aid.   To learn more, go to www.SavingforCollege.com.



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