Saving plan for kids future

My baby is 5 months old and I have about $6k saved up from gifts made to her. We are based in MA. I opened up a 529 plan that I’ve been contributing $50 to every month and I will continue to do that til she goes to college.

Right now the $6k is sitting in my high yield savings account. The rate for my high yield seems higher than the rates for CD accounts right now.

I don’t want to put all of the gift money into the 529 account because I don’t know if she will go to college and would like to save it for a car or house downpayment. I thought about eventually opening a kids savings account with my bank so she can physically go to the bank and deposit her gift money from birthdays and Christmas so she can learn to save. Then transferring the money to a custodial account made in her name so it can earn interest. Then whenever she wants something like a bike she can take it out of her savings but the bulk of the cash will earn interest so she can buy a car or home in the future.

Does this sound like an okay plan?