We have a 529 and an IRA for college savings. I opened a custodial savings account to deposit gifts (and I transfer $20/week). I figure when he turns 18 he can use this money to buy a car, or study abroad or go on spring break or save it for his first house. Whatever he wants to do with it, but I am not going to be the continuous ATM.

Thanks for the insight!

Follow up- Citi is letting us deposit in our adult account. Once deposited, we just send an equivalent amount to the 529. Fwiw, we keep trying to convince grandma to send directly to the 529, but she finds that too confusing.

My MIL has been sending us checks made out to kids' names for 8 years now, and Citibank is happy to let us deposit them. They tell us just to endorse them "as parent for -----."

No need to create a separate bank account for child IMHO. Maybe when they get old enough to understand the concept, but it depends on what lessons you want to teach.

I find it easier to have a savings account that is linked to mine.

Depends how the checks are made out. If they're made out in the babies name, you have to be able to deposit them someplace. If they're made out to the 529, you can just send them in.

We are the parents of a newborn. We are opening a 529 and an investment account for college funding. Do we need a separate savings account for the baby or should all gifts just go right into the 529 or the investment account? When I was a kid my parents had a savings account for me, but that was in the days before 529s, so I'm not sure if a savings account would serve any other purpose. Thoughts?