HSBC account for a 2 year old?

[cin87ken]

Hi, I would like some advice and opinions on what kind of account to set up for my 2 year old.
I have $2500 in her standard savings account (which earns next to nothing). I have done a little research and have considered a 529, but recently I opened a HSBC account for myself and really like it. Can I even open an account there for my daughter and what ramifications do you see or should I just stick with a 529?

I want some control as she grows older but as the account grows I don't want a huge tax burden either.
TIA

[mrn8]

HSBC will not let you open a minor account, you have to open the account in your name and list the minor as the beneficiary. With ING, you can open the account in their name and list yourself as the joint account holder, which then relieves you of any tax liability.

[cin87ken]

Thanks for the heads up! I have read here that many people like ING as well, so I may go that route.

[zetachi]

I opened an HSBC account for both of my kids. They are called First Start Savings not sure what kind of interest they get, probably not much.

[labgeek]

Look into an ESA over an 529... 529 = $11K limit. An ESA lets you put up to $2K per year per child if you don't hit the income limits. AND it's tax free if used for education. And many ESAs are Mutual Fund based. Long term, mutual funds have a good record - many much better than what you'd get with a standard savings account.

http://www.savingforcollege.com/intro_to_esas/

[mywarmbluefleece]

I really, really don't like HSBC. Any problem I have with them becomes a long drawn out ordeal. Haven't had that problem with Emigrant Direct.