<prompt> Human: My wife and I had our newborn a month ago, and are trying to open a savings account for her. Initially it is a place to temporarily hold her college savings starter, bit longer term it will be a storage place for allowances, birthday and holiday gifts, etc.Savings account interest rates suck already - usually a max of .8. However, as soon as you have a kid account, a number of banks seem to cut the interest rate as low as .05.At that rate, they are literally taking cash from children because inflation will NEVER be lower than that.What exactly is the point as a financial product?Edit: I am not looking for suggestions about 529s, that isnt the point for this account. This isnt college savings. It will be a place to park college starter cash temporarily while we figure out the 529 allocations. Once that cash is used to fund the 529, the account will remain in use to store cash gifts she receives.  <response>: Usually theres no minimumsfees with them, and occasionally theyll offer better interest rates. Its really an account for kids to use, not really for parents to park money for the kids. 