High Yield Savings Account

[MsOnceUponATime]

This is tricky as not all allow that. I was able to open a custodial account with Ally.

Do you know -- can I open one for my grandchildren? If so, do I need their SSN or some sort of identifying factor? I suppose I would open my own Ally HYSA and then open one each for them in one fell swoop?

 

[eticketplease]

Do you know -- can I open one for my grandchildren? If so, do I need their SSN or some sort of identifying factor? I suppose I would open my own Ally HYSA and then open one each for them in one fell swoop?

You will need your own Ally account for sure but I'm not sure if you can do it all at once or not.

You will need their SSN so that the interest earned is reported on their SSN and not yours since this will technically be their account.

 

[TheOneWithTheTriplets]

Do you know -- can I open one for my grandchildren? If so, do I need their SSN or some sort of identifying factor? I suppose I would open my own Ally HYSA and then open one each for them in one fell swoop?

Yes, a custodial account is opened in their social with you as the custodian. Because the money is in their name, it has implications for them in terms of taxes (once they have enough income for that to matter) and assets for, say, a FAFSA application some day.

 

[MsOnceUponATime]

You will need your own Ally account for sure but I'm not sure if you can do it all at once or not.

You will need their SSN so that the interest earned is reported on their SSN and not yours since this will technically be their account.

Yes, a custodial account is opened in their social with you as the custodian. Because the money is in their name, it has implications for them in terms of taxes (once they have enough income for that to matter) and assets for, say, a FAFSA application some day.

Thanks to you both for the quick responses!