This answer is from i want to open a savings account for my grand daughter and deposit money every month for her future is the interest she earns taxible
Jon said
Yes, the interest is taxable but if she's not earning money it won't matter... Be careful though, if you are on the account then you will have to pay.
529's are ok, I would suggest an Education Savings Account as they have many more options that 529s normally.
Good luck!
