How to Start a College Bond for an Unborn Child

Buy U.S. savings bonds now to start saving for your child's future.
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U. S. savings bonds offer a low-risk way for you to invest money for your unborn child’s education. Savings bonds earn interest over a period of 20 to 30 years, depending on the bond. Series EE and Series I bonds can be used to help pay for your child’s education, and the interest on the bond is not taxed by the Internal Revenue Service as long as you use the money to pay for your child’s qualified educational expenses. You must be at least 24 years old on the first day of the month in which you buy the savings bond.

Step 1

Set up an account through the U.S. Department of the Treasury's TreasuryDirect website. You must provide your name, address, Social Security number, email address and your bank routing number and account number.

Step 2

Log into your new account and click the “BuyDirect” link. Click the button next to the Series EE or Series I savings bonds.

Step 3

Enter the amount of bond you want to purchase for your unborn child. For example, if you want to buy a Series EE savings bond with a face value of $5,000, type “$5,000” in the field.

Step 4

Select your checking or savings account as the source from which to pay for the bond. Click the “Submit” button.

Step 5

Review the details on the confirmation page to make sure everything is correct. Click “Submit” to buy the bond. Your account will reflect the purchase and list the electronic savings bond

Step 6

Hold on to the savings bond until your child is ready to start college.

Step 7

Cash in the bond using your TreasuryDirect account.

Step 8

Pay your child’s college expenses using the money from the savings bond in the same year that you cashed in the bond. If you don’t, you’ll have to pay taxes on the interest.

Step 9

File your taxes using the Form 1099-INT you receive from the Treasury Department. Complete Form 8815 to show that the savings bond and interest was used on educational expenses.

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