Why Do Banks Limit How Much You Can Save

[DivaJen]

Re: Why Do Banks Limit How Much You Can Save

Well, as far as I know, some banks have children's accounts that you can open for them anytime really. The only bad thing about it is that they usually give you next to nothing in interest, and when they do give you interest, you still have to pay tax on it.

It's usually better to stick their money in your own account, or perhaps a 529 instead.

Up to age 14 (I think) the first $700 of interest income is not taxed.
(emphasis mine)