Account for Child

He can get almost 5% on 28-day T-bills at Treasurydirect.com. The minimum is $1000, and in $1000 increments. I would suggest he open a regular savings account (pitiful interest rate but ready access to the money.) Put the money in the savings account; use the account to fund the T-bill purchases and to receive the payments when the bills mature. The leftover money in the account can be his regular savings/spending money. If he wants to make a big purchase, he might have to wait up to 4 weeks to get the money if he doesn't plan carefully. (a good relatively painless lesson if it happens)

Bob

In theory, this looks great. In reality, an adult will have to go online

JOE

Go to Bankrate.com and see who has the best money market acct. rate. The national average is 3. something % now.

I have an ING Orange account and when I need to draw from it, I simply go online and transfer funds to my checking account. It takes 2-3 days. Currently yielding around 4.00 which is low compared to some others. Make sure to check their terms to see the difference and if their higher rates are introductory rates (which I've also seen).

Good luck.

I'll have to check with them as to whether they allow custodial accounts. They tend to keep things simple. In the past I have tried to open an account as Power of Attorney and they don't allow that.

ETrade bank - currently yielding around 5% - allows Custodial/UTMA/UGMA accounts, no minimum. Online access is quite good.

Just checked with ING and they do not allow custodial accounts.