As the title suggest, I have 2 little ones who I want to build up a fund for once they’re older.
Currently, I have 2 separate savings account for them. The accounts are marketed as growth oriented and meant for parents who are looking to contribute towards a future fund for their kids. Issue is that the interest on it is rather low at 2%, and there are heavy penalties for withdrawing early.
At the moment, I can contribute $350 per month to each account for the foreseeable future. No plans on using the funds until my daughters are older and out of high school, so I’m thinking they’ll be growing for at least 8 years. I was thinking perhaps this could be used to fund part of their college or even first car.
With this in mind, I plan to withdraw soon as the accounts are new so the interest paid so far is still low. What option do you all think I should pursue? I was looking at some HYSA and CD’s with high interest rates but confused on the pros and con of choosing either.
Any insights or tips would help. Thanks!