Cord blood banking costs between $1,400 and $2,300 for initial collection and processing, then $100 to $300 per year for storage
The upfront fee covers the hospital collection kit, lab processing to test the blood for viability and sterility, and the first year of cryogenic storage. Annual storage fees vary by bank and by the volume of cord blood stored. Some banks charge a flat yearly rate; others charge per unit or per vial. You pay these fees directly to the cord blood bank, not to your hospital or OB-GYN.
A few banks offer payment plans that spread the initial cost over 12 to 24 months, usually without interest. Some also waive or reduce the first-year storage fee if you pay the collection and processing fee upfront. Read the contract before you commit—storage fees can rise over time, and some banks charge reactivation fees if you stop paying and want to resume storage later.
Key Takeaways
- Initial collection and processing costs $1,400 to $2,300, paid to the cord blood bank before or shortly after delivery.
- Annual storage fees range from $100 to $300 per year and continue for as long as you keep the blood banked.
- Some banks offer payment plans to split the upfront cost, and a few waive the first year of storage if you pay collection fees in full.
- Private cord blood banks charge these fees; public banks (which store cord blood for research or donation) do not charge families.
- You should confirm the bank's pricing and any fee increases before signing a contract, because storage is a long-term financial commitment.
What the upfront collection and processing fee covers
When you arrange cord blood banking during pregnancy, the bank sends you a collection kit before your due date. The hospital or birth center uses this kit to draw cord blood after delivery—usually within 10 to 15 minutes after the umbilical cord is clamped and cut. The collection itself is painless and does not interfere with standard delivery care.
The upfront fee pays for the kit, the lab work to process and test the blood, and the initial cryogenic storage. Labs test for cell count, viability (how many cells survive the freezing process), and sterility—checking for bacterial or fungal contamination. This testing takes one to two weeks. If the sample fails testing or does not meet minimum cell counts, most banks will refund part or all of the processing fee, though policies vary.
Annual storage fees and how they accumulate
After the first year, you pay a yearly storage fee to keep the cord blood frozen. This fee typically ranges from $100 to $300 per year, depending on the bank and the number of units stored. Some banks charge a single flat rate per family; others charge per unit or per vial. A few banks increase their annual fee by a small percentage each year, so the cost at year 10 may be higher than at year 1.
Storage fees are usually due in advance—often in the fall or at the anniversary of your banking date. If you miss a payment, most banks will send a notice and give you 30 to 90 days to pay before they dispose of the sample. Some banks charge a late fee or reactivation fee if you stop paying and then want to resume storage later. Always check the contract for the bank's policy on missed payments and what happens if you want to retrieve or donate the sample.
Payment plans and discounts
Some cord blood banks offer payment plans that let you split the initial $1,400 to $2,300 cost over 12 to 24 months, usually without interest. A few banks also offer discounts if you pay the collection and processing fee in full upfront—typically a reduction of $100 to $300 off the first year of storage. Sibling discounts (lower fees if you bank cord blood for a second or third child) are less common but do exist at some banks.
Military families, low-income families, and families with a history of certain genetic disorders may find reduced-cost or no-cost banking through public cord blood banks or research programs. Public banks do not charge families; they store cord blood for potential use by anyone who needs a transplant or for research. The trade-off is that you do not have exclusive rights to your child's sample, and the bank may use it for research or donate it to another patient.
How to compare costs across banks
Before you choose a bank, request a written price quote that includes the collection fee, processing fee, first-year storage fee, and the annual storage fee for years 2 through 5. Ask whether the bank charges per unit or per family, and whether there are any additional fees—such as retrieval fees if you need the sample shipped to a hospital, or fees for testing the sample before use.
Also ask what happens if the sample fails initial testing, if you want to stop storage, or if you want to retrieve the sample for medical use. Some banks will refund part of your money; others will not. The contract should spell this out clearly. If a bank will not provide a detailed price breakdown or refuses to answer questions about refunds, that is a sign to look elsewhere.
What happens if you cannot afford ongoing storage
If you bank cord blood but later cannot afford the annual storage fee, you have a few options. You can stop paying and allow the bank to dispose of the sample—most banks will notify you before they do this. You can ask the bank whether they will transfer your sample to a public bank or research program at no cost. Some banks will do this; others will not.
You can also try to negotiate with the bank. Some will waive or reduce a storage fee if you explain financial hardship. It never hurts to ask, especially if you have been a customer for several years. If you are considering banking cord blood but worried about long-term costs, ask the bank upfront whether they have financial assistance programs or whether they will work with you if your circumstances change.
Private banks versus public banks and the cost difference
Private cord blood banks store your child's cord blood exclusively for your family's use. You pay all collection, processing, and storage costs. Public cord blood banks store cord blood for anyone who needs it—patients awaiting a transplant, researchers, or people in the general population. Public banks do not charge families anything; they are funded by government, hospitals, or nonprofit organizations.
The choice between private and public banking is not purely financial—it also depends on your family's medical history and your comfort with your sample potentially being used for research or given to another patient. But if cost is the main concern, public banking is free. You can donate to a public bank even if you have already decided against private banking, as long as you arrange it before delivery.
Frequently Asked Questions
Do I have to pay the upfront fee before my baby is born?
Most banks require payment before delivery or within a few days after. Some allow you to pay after the sample passes initial testing, which takes one to two weeks. Check the bank's payment policy before you sign up, especially if you are waiting to see whether the sample meets minimum cell counts.
What if I want to stop paying storage fees after a few years?
You can stop paying at any time. The bank will dispose of the sample after sending you a notice, usually 30 to 90 days before disposal. Some banks will transfer your sample to a public bank or research program at no cost if you ask. Always ask about this option before you stop paying.
Are there tax deductions or insurance coverage for cord blood banking?
Cord blood banking is not covered by most health insurance plans and is not tax-deductible as a medical expense. It is considered an elective service. Some flexible spending accounts (FSAs) or health savings accounts (HSAs) may allow you to use pre-tax money to pay for it—check with your plan administrator.
Can I move my cord blood to a different bank if the fees get too high?
Yes, but it costs money. The original bank will charge a retrieval and shipping fee (typically $200 to $500), and the new bank will charge a processing and integration fee to accept the sample. The total cost of transferring can be $500 to $1,000, so compare the new bank's fees against your current bank's before you decide to move.
What if the cord blood bank goes out of business?
If a private bank closes, it must transfer your sample to another bank or notify you so you can arrange transfer yourself. By law, the bank cannot simply dispose of samples. However, the transfer process can take months, and you may face unexpected fees. This is one reason to research a bank's financial stability and reputation before you sign up.