UNest Tax-Advantaged Investment Account For Kids

Fulfill Your Kids' Future Dreams
An investment account that allows you to save for your children’s future while getting tax benefits.
$0
Minimum Deposit
Up to $2,200
Annual Tax-Advantaged Earnings
$2.99
Monthly Fee

Details

Product Name
UNest Tax-Advantaged Investment Account for Kids.
Best For
Families with young children looking to save for their kids' future.
Use Funds For
Use the funds for anything in the future of your children, like paying for college, a car or wedding.
Monthly Fees
Pay $2.99 for one child account, or $5.98 for up to five children.
Type of Investment
Choose among five different investment plans tailored to your situation.
Penalty for Early Withdrawal
Pay no penalty fees if you use the funds for your child.

Video

UNest Inc. is an online fintech platform that prides itself on providing products and resources to help parents build a better financial future for their children. To date, thousands of families have used its great app and tax-advantaged custodial investment account for kids to meet savings goals. 

You can get started with UNest in five minutes or less, and there’s no need to spend extra money to hire a financial advisor or investment advisor. Plus, you’ll have peace of mind knowing it’s a FINRA registered broker-dealer that holds your funds in an account that’s protected by up to $500,000 through Securities Investor Protection Corporation (SPIC). 

It is currently backed by Northwestern Mutual, The Artemis Fund, Launchpad Capital, Franklin Templeton Investments and several other key players in the financial industry. 

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UNest Tax-Advantaged Investment Account For Kids

Fulfill Your Kids' Future Dreams

How Does The UNest Tax-Advantaged Investment Account for Kids Work?

The UNest Tax-Advantaged Investment Account for minors allows you to grow your money through investments and pass the funds on to your children once they reach the age of majority in your state – typically between 18 and 25. You can also open an account for an unrelated minor. Either way, the child must be under 17 years of age. 

Unlike college savings accounts and plans, there are no restrictions on how the funds can be used. There are also tax advantages you should be aware of. You can contribute up to $15,000 ($30,000 for married couples) each year without paying gift tax. You’ll enjoy tax-free growth on the first $1,100 in annual earnings (on contributions). However, the next $1,100 is assessed kiddie tax, and any gains beyond that amount are taxable at your rate. 

Here’s an overview of how the process works: 

  • Step 1: Download the UNest mobile app on your iOS or Android device and provide the requested information to open a UNest account. It’s available in the Apple App Store and on Google Play. 
  • Step 2: Choose the most suitable investment option. UNest features a conservative investment option, aggressive investment option and three age-based options that are conservative, moderate or aggressive. 
  • Step 3: Select your monthly or bi-weekly monthly contribution amount. The minimum monthly investment is $25, but you’re free to contribute more as your budget permits. 
  • Step 4: Start investing and use the mobile app to monitor your progress and make adjustments as needed. 

What Are The Benefits of Opening an Investment Account For Kids with UNest?

There are several reasons why opening an investment account for your children with UNest could be a sound financial decision. 

  • Low-cost plans: UNest makes it affordable to open an account with monthly subscription fees starting at just $2.99.
  • Tax benefits: You can grow your money tax-free and invest in your child’s future. 
  • Low minimums: The minimum monthly investment is just $25. So, you can start saving for your children in a tax-advantaged investment account, even if money’s tight. 
  • Gifting: Family members and friends can help your account grow faster with gift contributions of $5 or more. Contributions can be made with a credit card, debit card or ACH bank transfer. (Note: A gifting fee of 1% of the gift amount + $0.99 applies to all ACH transfers). 
  • UNest Rewards: Get cashback when shopping with your favorite brands via the UNest app. There’s no action required on your end as UNest will automatically deposit the funds into your account in 7 to 10 business days. 
  • Referrals: Earn a bonus of $15 each time you refer a family member or friend to the UNest app and they open a custodial account. 
  • Flexibility: Unlike college savings accounts and plans, there are no restrictions on how the funds can be used once your child reaches the age of majority. You can use the money saved for your kid’s education, including college tuition and fees, or it can be used to help meet your child’s future goals. 
  • Convenience: You won’t have to worry about scheduling contributions as UNest handles it for you. In fact, you’ll select the amount you want to contribute, the frequency (either bi-weekly or monthly) of contributions and how you’ll fund the account during set up. 
  • Personalization: There’s no one-size-fits-all investment approach. That’s why UNest offers five investment options that can be tailored to meet your savings goals for your child. 
  • Educational resources: Use the college savings calculator to help set a feasible saving goal or visit the blog to enhance your financial knowledge. 
UNest Logo
UNest Tax-Advantaged Investment Account For Kids

Fulfill Your Kids' Future Dreams

UNest Mobile App Features

The UNest mobile app is user-friendly and features an assortment of perks for account holders, including: 

  • Fast and easy setup 
  • The UNest Learn platform that answers your most pressing money questions
  • Low fee investment options with different asset allocation strategies
  • Simplified account monitoring and management
  • Bank-level security and strong encryption 
  • Increased earning potential through gifting, UNest Rewards and referrals 

UNest Fees

It’s free to download the mobile app, but you’ll pay a monthly fee of $2.99 per child or $5.98 for up to five children to open and invest with a UNest investment account. 

How to Get Started With a UNest Investment Account for Kids

UNest will need the following information for both you and the child to open an account:

  • Your legal name, address and date of birth
  • Your citizenship status or legal residency information
  • Your Social Security number or ITIN

Once you’re ready to move forward, download the mobile app to open your account and start investing today for your children’s future. It’s easy and only takes less than five minutes of your time.

FAQs About College Plans (5)

  • What is the best investment account for a child?

    UNest investment account may be your best option if you are looking for flexibility to use your funds. This customdial account offers the same tax advantages as a 529 plan while providing you with more flexibility, like allowing you to withdraw money without a penalty early, providing it for expenses related to your child.

  • Are college savings accounts tax-deductible?

    While the money you place into the account is not tax-deductible, your child doesn’t need to pay taxes on the gift up to the yearly limit. Also, you can put a one-time five-year maximum into the account without paying taxes.

  • What is the average return on a 529 college saving plan?

    From 2011 to 2020, the average growth rate was 12%, so your average return would be 12% of your investment. But, of course, since you’re making monthly contributions, the return becomes higher as the amount you invest increases.

  • Is a college savings account 529 better than a savings account?

    Yes, a college savings account 529 is better than a savings account. A savings account usually pays less than a 1% return in interest. If you want more flexibility on what you can use the funds for, choose a custodial account like UNest.

  • What is the maximum contribution of a 529 college saving plan?

    The maximum contribution of a 529 college saving plan varies by state. Some states allow contributions up to $380,000; however, your child would need to pay taxes on a contribution that large. In addition, the amount you can give changes in the tax code from time to time, and it can be based on the relationship to the individual, so you may want to check before contributing large amounts.

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UNest Tax-Advantaged Investment Account For Kids

Fulfill Your Kids' Future Dreams

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