FREQUENTLY ASKED QUESTIONS

Have questions?
We have answers.

Why should I use EarlyBird?

Whether you're a beginner or an expert in investing in the stock market, EarlyBird simplifies the process for parents to kickstart their child's financial future by opening a custodial investment account, while allowing family and friends to remain connected to the children they love by gifting meaningful and sustainable financial contributions for all life's milestones.

What is Early Access? When can I use the mobile app?

EarlyBird is currently in a private closed Beta. Over the next few months, we will begin extending invitations for priority access for families that have signed up for Early Access through our website. EarlyBird will notify you via email, once we're ready to welcome you to Early Access.

Signing up for Early Access does not guarantee access to EarlyBird.

How do I claim my credits/gifts from Early Access or a referral?

If you receive an EarlyBird investment credit/gift through our Early Access program, those credits can be redeemed and applied once you download the EarlyBird mobile app (available on iOS only for Early Access), and successfully on-board by connecting your bank account.

What is a custodial account?

A custodial account allows a parent, guardian, or other family members/friends to open an investing account for a minor*.

The adult (or Custodian) who opens the account can manage the money and investments until the minor reaches the “age of majority.”

That age is usually 18 or 21, depending on the Custodian’s state.When the minor is old enough, money in a custodial account becomes their property.  The assets deposited into a custodial account cannot be taken back or given to someone else.

*The age of a minor varies by state. Some states consider anyone under 18 a minor. Other states consider individuals minors until they are 21.

*To withdraw funds from a custodial account please contact support.

What are the differences between a custodial account and a 529 Plan?

529 plans and custodial accounts — such as a UGMA (Uniform Gifts to Minors Act) — provide ways for parents and others to help save for children's tuition and other expenses for college and private elementary and secondary school.

One major difference is in the flexibility of use of funds. Custodial accounts can be used for non-education purposes, whereas a 529 plan can only be used (without adverse income tax consequences) for tuition, room and board, and other qualified education expenses.

What are the fees? How does pricing work?

For parents, our pricing is simple. No setup fee. Your first $200 of assets under management (AUM) is free. Then a $3/month wealth management fee for your first child and $1/month for each additional child after that.

For family members or friends sending a gift, there is just a simple $2  processing fee per gift.

What are the tax implication of investing in or contributing to a custodial account?

Account Owners: Because money placed in an UGMA account is owned by the child, earnings are generally taxed at the child’s—usually lower—tax rate, rather than the parent’s rate. For some families, this savings can be significant.

For those giving: Contributions to UGMA accounts are made with after-tax dollars—the donor doesn't receive an income tax deduction for making them. However, up to $15,000 per individual ($30,000 for a married couple) annually can be contributed free of gift tax.

How are my accounts and investments protected? 

EarlyBird is committed to providing you and your family with the highest levels of security. Investment accounts are held with our trusted partner and custodian Apex Clearing Corporation, a third-party SEC registered broker-dealer and member of FINRA and Securities Investor Protection Corporation (SIPC). This means the investments in your account are protected up to $500,000 total.

We use the highest standards to ensure your information and data is safe. We use multi-factor authentication, automatic logouts, and ID verification help prevent unauthorized access.  Accounts are protected with 256-bit SSL encryption.

What is EarlyBird's investment strategy?

EarlyBird partners with wealth management and financial planning experts and leaders to curate our investment offering. We offer parents a fixed portfolio model, where we recommend expertly crafted ETF-based portfolios made up of both securities and bonds, based on the age of the child, your investment goals, time horizon, risk tolerance, and other factors.

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