Saving for a childs future (bonds? gold?)

Caroline, are you sure?
When I started buying them this year the bank told me 10 years?
30 sounds ridiculous. I'd do CD's if a bond is 30 yrs.
I'm going to call the bank and also read the info on bonds.
Will post what I find out tomorrow.

Morrison, the grandchildren are only 2 and 3 y/o, to soon for savings accounts although they have something here called Uniform gift to minors
something or other where it's in their name and an adult and
the child can't touch it without the adult present until they're 18.

After reading Carolines post I went to the
Savings Bonds web site.
Here is what I found. (Not happy about it and after they reach
five years old I won't be buying anymore., I'm doing this for their college
and to buy a home or something.)

Extension rules for November 1982 through April 1995: Bonds will enter into a first extension for 10 years. On the second extension, the bond earns interest until it reaches 30 years old. During the seconds extension, the guaranteed minimum interest rate value is re-calculated. It begins by determining what the bond will be worth at the end of the first maturity period and then applies the rate that was in effect when the second maturity period was entered for each interest period.

EE BONDS ISSUED SINCE MAY 1995: Since interest rates can change every six months, it is virtually impossible to predict when your bond will reach it’s original maturity (face value). A brief guideline is if the bond was earning an average rate of 5% per year, it would take approximately 14 1/2 years to reach face value. A bond earning interest at a rate of 6%, compounded semi-annually would take no more than 12 years to reach face value.

GOOD NEWS! EFFECTIVE MAY 1, 1995, BONDS ARE GUARANTEED TO BE WORTH AT LEAST IT’S FACE VALUE AT 17 YEARS. THE TREASURY WILL MAKE A ONE TIME ADJUSTMENT TO BE CERTAIN THAT YOUR BOND WILL REACH ITS FACE VALUE IF INTEREST RATES WERE TOO LOW.

Extensions on Bonds issued from May 1995 and thereafter is from the 17th year to 30 years, bonds will earn interest for thirteen more years, or until it is 30 years old.

It's never to soon for savings accounts. Our children have them and we put money each month in them. My parents also give money for college each birthday and Hannakah and into the savings account it goes. great way to teach them savings from an early age.

We also have Uniform gift to minor accounts for each of the children.

Be careful with these accounts...They are not tax-deferred ( or tax-free) accounts and when the child assumes control of the assets they can do whatever they want to with the money...Additionally, all monies placed into this type of account are considered a NONREVOCABLE by the IRS...So any money taken from the account must be used by the child or directly for the child's benefit.