Financial Whiz Kid

For small amounts, savings account from banks don't earn much at all (0.15 to 0.25%). CD (Certificates of Deposit) of various lengths can earn around that in 3, 6 month (0.3 to 0.6% ) or 1-yr (0.95%) -maturity timeframes.

Try checking our Forbes.com for surveys of rate of return % info:

http://www.forbes.com/sites/moneybuilder/2013/01/11/online-banks-offer-best-savings-account-rates-for-2013/

"Capital One Bank. Capital One Bank is a big bank with nearly 1,000 branches across nine states, and more than $100 billion in deposits. In addition, it should have a beefed-up online presence soon because of its recent acquisition of ING Direct. For branch-based customers, Capital One Bank offered an average savings account rate of 0.68% (based on rates in New York — rates offered may differ by location)."

He's got at least 10 years before he's looking to draw from his investments (for college, say) and can therefore go with higher risk funds. Look for funds classified as growth vs value or income. There's a greater risk for losses with such funds too so he'll need to be prepared for dips. A good rule of thumb to follow is 80-20 split between growth stocks and income producing bonds when you have more than 10 years to ride out a dip in the market, 50-50 when you're between 5-10 years outs, and 20-80 when you think you'll need the funds within 5 years.

If he gets a 529 plan his earning will accumulate tax-free (and state tax free in some states) if he uses the funds for college expenses.

Here's one article on the subject.
http://www.moneycrashers.com/investing-long-term-investment-strategy-allocation-age/

Also, if he's really into it, a subscription to Money magazine might be a good gift. They have basic articles and simple investment strategies for the novice investor.

Another idea for a young investor is DRIP funds. You buy a few shares of stock directly from the company and then buy more shares by reinvesting the dividends or sending more money. My kids had McDonald's DRIPs when they were young.

http://www.fool.com/DRIPPort/HowToInvestDRIPs.htm

Thank you both for the advice. I actually only put 500.00 bucks in that ETrade account because Antonio seemed so interested in how the stock market and mutual funds work so I thought I’d let him play with it. He watches it like a hawk!

I did open two 60 month CD’s through Chase Bank for his college fund, once they mature I’ll probably open two more for another five years so it’s there for his college tuition.

I’ll bet he would love the idea of a subscription to Money magazine, and he’s not even Jewish.

Oy~! It is his pores now.

Interest can easily turn into knowledge and awareness, which is never a bad thing at any age.