Best savings/investment account for a baby?

We would like to start up some type of investment for our baby for him when he's 18 (ideally to use for college)--what is the best investment to make? What if he decided not to go to college (would we lose the $ if the account was college specific)? We wouldn't be able to contribute much money at first.

Here are a number of options:

http://financialbasics.blogspot.com/2006...

Hopefully the suggestions will help you.

Try an online Bank that offers 5%+ in their savings rate, some have no minimum initial deposits,

try http://www.emigrantdirect.com or http://www.hsbc.com

Talk to one of the big companies; like Scottrade or Fidelity and set up a 529 College Savings Plan. If you are unsure if the child will go to college, you can start an "Orange Savings Account" with ING, and that account will gain a really nice interest rate 4.5% right now.

The money will be liquid at all times and if the child does not go to college there will be no penalties to withdraw the money.

Hope this helps,

Eric

I think a 529 is your best bet. Here's why.

If you put money into a savings account in your name, it's not tax deductible for your child's tuition.
If you put money into a savings account in your child's name, your 18 year old can take the money to Cancun and blow it on tatoos and tequila.
If you put money into a 529 listing your child as beneficiary, you still control the money, but it's tax deductible if used for tuition.

Another advantage: If your child decides not to go to college, you can roll all the money over into another 529 (for instance, a younger sibling that WILL go to college, or if YOU or YOUR SPOUSE wanted to go back to school).

If no one wants to go to school, you won't lose the money. You'll just have to pay taxes on it.

529 accounts are great for college savings, but you'll want to be fairly certain that the money will be spent for college by somebody in the family (other child, self, grandchild, etc.). If it's not spent for college, then you'll pay a 10% penalty on withdrawals and you'll lose that tax free benefit too.

You can always open up a regular investment account (directly with a mutual fund company or with an investment firm). Given your child's age and time frame, I'd recommend a good stock mutual fund.