What a treat for her! The answer depends on how old she is. If graduation is a year away, it’s not going to make much difference what kind of account it is in because we are in such a low interest rate environment. If it is 1-5 years, a low cost short-term bond fund, like they offer at Vanguard or Fidelity, would have a chance of providing a better return (no guarantees, of course). If it is more than 5 years, you could justify moving it to a low cost stock fund because over 5 years gives you enough time to weather the regular ups and downs of the stock market and have the opportunity for a higher return. Companies like Vanguard and Fidelity have minimums, so check on that first. Let us know what you decide to do?
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