alt Hacker NewsI am curious. When you put this money in kids names, do they (or we) get taxed on this? If we save on taxes, then for a person (or their child) with high income and high state taxes, the benefit of the 3% may be larger than it appears to be. Of course, up to a limit.
Depends on jurisdiction, I'm sure.
In the US, kids taxes can be separate, but after a small exemption, they pay the parents rate on unearned income (investments, interest, etc). You have to have a pretty big balance before 3% apy gets past the exemption though.