[USER]

I’m looking for a high-yield savings account (HYSA) option to set up as a long-term gift for my grandchildren. I want to deposit funds that will grow over time, so they can access it when they graduate from college.

I’m especially interested in accounts with competitive interest rates, low fees, and minimal account maintenance requirements.

For anyone who’s done something similar or has experience with HYSAs, what would you recommend? Are there specific banks or online options that have worked well for you in terms of growth and stability over the years?

Any advice or personal experiences would be much appreciated!

[Kelly]

Depending on their age, why not consider a UTMA brokerage account (which can be invested in any combination of investments, including HYSAs or Money Market).

[Aaron]

Pretty much EVERY HYSA will devalue from inflation and taxes, long-term. It will end up being worth less than what you contribute.

[Jennifer]

My husband opened an IRA and deposits money monthly to it. When we determine our grandkids are old enough to have the money (19, 21, 25…?), he will be of age to withdraw the funds.

[David]

I wouldn’t put any of the money in a HYSA given their long time horizon. Should be much more aggressive with something with a technology focused (ex. XLF).

They’ll thank you later.

[Cassie]

I have Ally and really like it! You could also do a 529! Lots of positive things about a 529.

[Author]

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