UNest is a fintech company that takes the stress out of investing for your children with its tax-advantaged custodial investment account for minors and innovative mobile app. It officially launched the mobile app and investment account in February of 2020 and has since served thousands of families to date.
The FINRA registered broker-dealer is backed by several industry leaders, including Northwestern Mutual Future Ventures, Launchpad Capital, The Artemis Fund and Franklin Templeton Investments.
How the UNest Tax-Advantaged Investment Account Works
The UNest Tax-Advantaged Investment Account lets you grow money for your child over time through investments. You can also open an account for any minor that’s 16 years of age or younger, even if they’re not related to you.
Here’s how it works:
- Download the mobile app on your phone and open an account. It’s simple and takes five or so minutes of your time.
- Select an investment option and monthly or bi-weekly contribution amount. There are five investment options to choose from, and the minimum monthly investment is $25 per month.
- Monitor your account with the mobile app. You can also switch investment options, change the contribution amount and view detailed transaction activity.
Contributions are limited to $15,000 (or $30,000 for married couples) annually to steer clear of gift tax. You’ll get tax benefits on the first $2,200 in annual earnings on what you contribute- the first $1,100 enjoys tax-free growth, and the remaining $1,100 is subject to the kiddie tax. Any gains beyond the initial $2,200 are assessed tax at the parent’s rate. Be mindful that any contributions you make are not subject to taxation.
Beyond recurring monthly or bi-weekly contributions, these options also help you grow your child’s account:
- Gifting: Invite family members and friends to contribute to your child’s account instead of sending gifts for special occasions and holidays. The minimum contribution for gifts is only $5, and funds can be sent via debit card, credit card or ACH bank transfer. (Note: Funds sent via ACH are assessed a gifting fee of 1% of the gift amount + $0.99.
- UNest Rewards: Earn cashback that’s contributed directly to your UNest account when you shop with leading brands inside the mobile app. When you complete your purchase, funds are typically sent to your account in 7 to 10 business days.
- Referrals: Give your UNest account an extra boost by spreading the word and earning a bonus in return. You’ll get $15 deposited into your UNest account each time someone you refer opens an account.
Funds are held in the account until your child reaches the age of majority in your respective state – generally between 18 and 25 years of age. When the minor gets access to the account, funds can be used for college, a big-ticket purchase, wedding expenses, a down payment on a car or home, or however your child sees fit.
UNest App: Manage Your Tax-Advantaged Investment Account
The UNest app is available on iOS and Android devices. It makes it easy to open and manage your account while on the go. It’s rated 4.8 and 4.9 stars on App Store and Google Play, respectively.
How Much Does It Cost?
UNest App Fee
It’s free to download the UNest App, but you’ll pay a monthly subscription fee when you open an account.
UNest Fees
However, UNest charges a monthly fee of $2.99 per child, or $5.98 for a family plan that covers up to five children. Both feature:
- Streamlined account setup and management through the mobile app
- Your choice of five investment options, one being age-based
- The ability to invite family members and friends to contribute
- UNest Rewards that help you grow your account just by shopping with your favorite brands
- Access to a savings calculator to help you set a savings goal
Even better, you’ll never pay a monthly advisory fee to take advantage of what UNest has to offer.
UNest for Employers
Companies can partner with UNest to offer tax-advantaged custodial accounts to their employees. It’s a seamless process, and you’ll get a dedicated team and personalized support to foster the expansion of your company’s benefits package.
UNest App Reviews
UNest has a solid reputation online from past and current customers.
What Users Say About UNest App
- UNest is a perfect option for parents & families to invest in their children. As a widow on a disability income, I didn’t know how I was going to be able to save for my child. When her father died suddenly, whatever money we had saved got used up faster than it took us to save it. I haven’t been able to replace it what we needed to take. UNest has given me a chance to at least try. Thank you!—Lynne-Ann Hunt (Android app customer)
- UNest has been paramount in investing in my child’s future. As a new parent, I was looking for ways to secure my child’s future financial security. I’ve had to reach out to the client support team a few times, and they have been nothing but helpful! I want to highlight that it takes a bit of waiting to get to someone, as they work typical business hours and are a small team. Nonetheless, I feel really great about my choice to start a UNest account!—Tyler R. (iOS app customer)
