Page 20 - AAA Now! – AAA Akron Auto Club – Spring 2020

FINANCIAL MATTERS
AAA
What are Custodial Accounts for Minors and Why Should I Get One?
If you’re looking to invest in your child’s future, a custodial account might be the right choice for you. Learn what they are and how one can benefit your family.
What is a custodial account?
Custodial accounts are a type of arrangement
in which an adult opens a financial account for a minor. The details around such programs (including roles and responsibilities) vary by state and further information can be found in state statutes (e.g., Uniform Transfers to Minors Act). Funding for
such accounts can be money the minor is entitled to receive or a gift from an adult. The adult
controls this account for the minor until they
reach a specified age, which varies by state and other factors. Generally, the specified age is
18 or 21, or even extended to 25, at which point
the custodian turns over the funds to the
former minor.
What are the benefits of opening one?
Custodial accounts are a great way to save for a child’s future without many of the expenses and complications that come with opening a trust fund. Plus, you might enjoy some tax advantages. Please see a tax professional for information on potential tax advantages. Custodial accounts might not be for everyone (e.g., such accounts might have an impact on a student’s financial aid).
Consider opening a custodial CD, Money Market, or Online Savings account to invest in your child’s future. To learn more about deposit accounts at Discover Bank®, call 1.800.347.7056.
Discover Bank®, Member FDIC
Join us for a Consumer Talk March 25.
Please join AAA Akron and Discover Bank at 100 Rosa Parks Drive in Akron, Ohio, for an informative evening on March 25 at 6 p.m. Learn more about Discover’s product offerings and how being a AAA member can help maximize your savings.
RSVP by calling Pam at 330-762-0631.
Savings for the Whole Family
Whether you’re starting to save or expanding your retirement options, Discover Bank® has a deposit product for everyone.
CDs & IRA CDs
GREAT FOR LONG-TERM AND RETIREMENT SAVING
ONLINE SAVINGS ACCOUNT1 ACCOMPLISH SHORT-TERM SAVINGS GOALS WITH EASE
Call now for current rates or to open an account!
Call 1.800.347.7056 Mention Invitation Code: CDMMOSAAA All accounts include rates that are 5x or greater than the national average2, now with NO FEES–PERIOD!3
1Federal law limits the number of certain types of withdrawals and transfers from an Online Savings or Money Market Account to a combined total of six per calendar month per account. There is no limit on the number of withdrawals by ATM or by Official Check mailed to you. If you exceed these transaction limitations during any calendar month we may refuse to pay each transaction in excess of the limitations. If you exceed these limits on more than an occasional basis, we reserve the right to close your account.
2National CD Average APYs based on APYs of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc., as of 1/8/20.
The Annual Percentage Yield (APY) for the Online Savings Account as of 1/8/20 is more than five times the national average APY for interest-bearing savings accounts with balances over $500 as reported by Informa Research Services, Inc. as of 1/8/20. Interest rates and APYs are subject to change at any time. Although the information provided by Informa Research Services has been obtained from the various institutions, accuracy cannot be guaranteed.
3Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network. © 2019 Discover Bank, Member FDIC
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SPRING 2020
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