Savings accounts that cannot be touched for specified period?

Question

Interested in what kind of savings or money market accounts can be set up that cannot be withdrawn from for 1-5-10 year periods. Thanks.

Answer 1

Why not just set up the account in your name? You could decide when she has matured, and transfer it to her at that time.

Another option is to set up a trust, with yourself as the trustee.

Answer 2

You could look into Cds

Answer 3

The ones you set for 1 year are normally refereed to as a "Christmas Club" account.  You open them in January and are authorized to withdraw after a specific date, example no withdrawals until 1 December, deposits only.

Anything for a longer length I would go CDs as you get a better percentage rate.  Savings account do do the 4 to 5 percent they did back in the '80s.  Now it is more like 1%.

Answer 4

You can also set up an "annuity" with you as the owner, and her as the benficiary.... typicly a 7 year period with surrender charges by the company you set it up with, and then IRS tax penalty of 10% for early withdrawl.  Not sure of the age for the IRS thing though.  It's worth a look if it sounds like it fits.

It also compounds tax deferred.