How to Set Up a College Savings in a Kid's Name
- 1). Select the bank that has a savings account with the highest possible interest rate. Keep in mind that this money will sit in the savings account for years to come without being withdrawn, so you'll want to be sure that your money will make money of its own in the form of interest. The Web sites of banks always have current information as to what interest rates they offer on savings accounts. You can also go into a bank branch and speak with a representative.
- 2). Decide on the starting balance of your savings account. This is the amount of money you'll initially deposit into the account. If you're planning on continually adding to the account over time, this doesn't have to be a lot of money. However, if you're planning on making one deposit and just letting it sit, it should be as large as you can afford to ensure that it starts drawing interest as soon as possible.
- 3). Go into a local bank branch with the money you'd like to deposit in either cash, check or money order. You'll also need the social security information of the child whose name you'd like to place on the savings account.
- 4). Choose the type of savings account you'd like to open. You can choose to either open a savings account with only the kid's name on it or a joint account in both your name and the kid's name.
- 5). Inform a customer support representative at the bank that you'd like to open a savings account in the kid's name. They will need the child's social security number as well as a phone number and an address where monthly and quarterly statements can be sent. The customer support representative will take your money and set up the account in the bank's system based on your specifications.
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