Need advice on what type of account to place a very large sum of money in. Something with interest?

Question

Want it to where It is hard to just go and withdraw the money. Thinking of having daughter's name put on the account and have it to where both have to be present to make a withdraw. In case of emergency, we would have to have proof that the other person could not be there. Have you ever heard of anything like this? I just need something that is going to keep a very large sum safe.

Answer 1

Open up a cd.Go to your bank and tell the teller what you are doing. They will get you there best interrest rate.

Answer 2

How about a CD? They have different lengths of time and are interest-bearing--and if you take out the money before the time is up, you dont get a dime of that interest...and I am not sure, but you may even have to pay a penalty. I might be thinking of 401k, lol. :)

Answer 3

If you trust your daughter, then put her on the account. However, if she get a loan at the same bank where the funds are, and she defaults on it, they can debit the account. It's called the right of offset. So just make sure the loan is not where your funds are. Just a suggestion: if you have $100,000 for example, get (5) $10,000 CD's (6) $5,000 CD's (10) $1,000 CD's  and $10,000 in a regular savings for emergency.

Answer 4

1) not all in one basket

2) appoint FOR your daughter a proper legal representative

3) be careful!

Answer 5

If you have a very large sum of money and you want safety as well as interest, think about "laddering" CDs.  In laddering you invest in CDs with different terms. That way some of the money is always "maturing" or "coming due" and you can take out the money or roll it over into a new CD as you choose. You can divide the money into however many "pieces" you want and then get different CDs with different terms. For example:

25%-3 month CD

25%-6 month CD

25%-9 month CD

25%-1 year CD

Or if you don't want the money for a longer period, just get longer term CDs.  As far as putting your daughter's name on them, if it is your money alone, you shouldn't, because she would be taxed on 1/2 of your interest as well as legally owning 1/2 of the money.  As one of the legal owners, she could cash out the CDs and take the money whenever she chooses.  I don't know if you can require two signatures on a CD the same way that you can on a regular bank account.  You can make the CDs POD or Payable On Death to whomever you want as a beneficiary.  If you are worried that you may need to get to all or part of the money in an emergency, use the "risk-free" CDs at Bank of America.  That way, if you need to, you can withdraw the money at any time after the first week, with no interest penalty.

Answer 6

You should go to your nearest bank and/or brokerage firm and speak to a representative to let them know exactly what you would like to do.

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Answer 7

investment bank like goldman sachs