What you need to open a child's savings account

You can open a savings account for a child at most banks and credit unions, and the process takes 15 to 30 minutes in person or online. You'll need your own government ID, the child's Social Security number, and proof of address (a recent utility bill or lease works). Some banks also ask for the child's birth certificate, though not all require it.

The account will be held in your name as the parent or legal guardian, with the child listed as a beneficiary or co-owner depending on the account type you choose. You control the account until the child reaches the age of majority in your state—usually 18 or 21—at which point they can take full control or the account automatically transfers to them.

Most banks offer children's savings accounts with no minimum opening deposit, though some credit unions ask for $25 to $100. Monthly fees are rare on these accounts, but some banks charge a small fee if the balance drops below a certain amount or if there's no activity for several months. Read the fee schedule before you open the account so you know what to expect.

Key Takeaways

  • You need your ID, the child's Social Security number, and proof of your address to open an account at a bank or credit union.
  • The account is held in your name as the parent or guardian, and you control it until the child reaches the age of majority in your state.
  • Most children's savings accounts have no monthly fees and no minimum opening deposit, though some credit unions charge a small opening deposit.
  • Interest rates on children's savings accounts are typically lower than rates on regular savings accounts, so compare offers before you choose a bank.
  • You can open an account online at many banks without visiting a branch, though some banks require an in-person visit for accounts held by minors.

In-person versus online account opening

Opening an account in person at a bank branch takes about 20 to 30 minutes and requires you to bring your ID, the child's Social Security number, and proof of address. The banker will fill out the paperwork with you, answer questions about the account features, and you can fund the account immediately with cash or a check. This route works well if you want to ask questions or if the child is old enough to come along and see the account being opened.

Opening online is faster—usually 10 to 15 minutes—and you can do it from home. You'll upload photos of your ID and proof of address, enter the child's Social Security number, and fund the account by linking a bank account or transferring money from another account. Most online applications are approved within one business day. However, some banks do not allow online opening of minor accounts and require you to visit a branch or complete additional paperwork by mail.

Call the bank or credit union before you start an online application to confirm they accept online opening for children's accounts. If they don't, ask whether you can open the account online and then add the child's name afterward, or whether you need to come in person from the start.

Choosing between a custodial account and a joint account

A custodial account is held in your name only, with the child as a beneficiary. You have complete control and can withdraw money or close the account without the child's permission. The child cannot access the account or make withdrawals until they reach the age of majority, which is 18 in most states and 21 in a few. This account type is simpler to manage and gives you full authority over the money.

A joint account lists both you and the child as owners with equal rights. Depending on the bank, either owner can withdraw money or close the account. Joint accounts let older children (usually age 13 and up) see the balance, make deposits, and sometimes make withdrawals using a debit card. This can teach money management, but it also means the child can spend the money without your permission once they have access.

Most banks default to a custodial account for children under 13 and offer a joint account option for older children. Ask the bank which type they recommend based on the child's age and what you want to teach them about money. If you want the child to learn by managing the account but also want safeguards, some banks let you set withdrawal limits or require your approval for large transactions.

Interest rates and how they affect your child's savings

Children's savings accounts typically earn between 0.01% and 0.05% annual interest, which is lower than regular savings accounts at the same bank. A $500 deposit earning 0.01% interest would grow by about 5 cents per year. The interest rate varies by bank and changes based on what the Federal Reserve does with interest rates, so the rate you see today may be different in six months.

Some online banks and credit unions offer higher rates—occasionally 0.10% to 0.25%—on children's accounts, though these are less common. If you plan to keep a larger amount in the account (more than $1,000), comparing rates across a few banks can make a real difference over time. A $2,000 balance earning 0.25% interest grows by $5 per year, compared to $0.20 at 0.01%.

Interest is paid monthly or quarterly depending on the bank, and it's added directly to the account balance. You don't have to do anything to receive it. The bank will send you a tax form (Form 1099-INT) at the end of the year if the child earned more than $10 in interest, which you'll need when filing taxes.

Setting up automatic deposits and teaching money habits

Many banks let you set up automatic transfers from your checking account to the child's savings account on a schedule you choose—weekly, biweekly, or monthly. This works well for allowance, birthday money, or regular savings goals. You can set it up through your bank's website or app in a few minutes, and it happens without you having to remember each time.

Some parents use automatic deposits to match what the child earns or saves—for example, depositing $5 every time the child deposits $5 from chores or a job. This teaches the value of saving and shows that effort is rewarded. Other parents use the account to hold money the child receives as gifts and let them watch it grow over time.

If the child is old enough to have a debit card linked to the account, you can set spending limits through the bank's app so they can make small purchases but can't drain the account. Not all banks offer this feature for minor accounts, so ask when you open the account if it's something you want.

What happens when the child turns 18 or 21

When the child reaches the age of majority in your state—18 in most places, 21 in Alabama, Nebraska, and Wyoming—the account automatically converts to an adult account in their name. You lose access and can no longer see the balance or make withdrawals. The child can now withdraw money, close the account, or manage it however they choose.

Some banks send a notice a few weeks before the conversion date so you can prepare. Others convert the account without warning. If you want to discuss the account with your child before they take control, reach out to the bank ahead of time and ask when the conversion will happen.

If you want to keep contributing to the account after the child turns 18, you can still transfer money to it, but the child will have to accept the transfer or you'll need their permission. The account is now theirs, not yours, so treat it that way.

Banks and credit unions that offer children's accounts

Most major banks—Chase, Bank of America, Wells Fargo, Citibank—offer children's savings accounts with no monthly fees and no minimum opening deposit. Credit unions often have lower fees and sometimes higher interest rates, though you may need to live or work in a certain area to join. Online banks like Ally and Marcus also offer children's accounts, usually with higher interest rates than traditional banks but without the option to visit a branch.

Compare a few options by visiting their websites or calling to ask about the interest rate, monthly fees, minimum balance requirements, and whether they allow online opening for minors. Some banks offer perks like a debit card, online banking access for the child, or educational tools about money management. These extras don't affect how much money grows in the account, but they can make the experience more useful for teaching.

If you already bank somewhere, start there—opening a second account at the same bank is usually faster and simpler than switching to a new one. But if your current bank charges high fees or offers very low interest rates, it's worth looking at a credit union or online bank.

Frequently Asked Questions

Can I open a savings account for a child without their Social Security number?

No. Banks are required by law to collect the child's Social Security number to report interest earned and to prevent fraud. If the child doesn't have a Social Security number yet, you can request one from the Social Security Administration before opening the account. The process takes about two weeks by mail or a few days if you apply in person at a local Social Security office.

What if I want to add money to the account but the child is not with me?

You can deposit money online by transferring from your own bank account, or you can visit the bank branch and deposit cash or a check yourself. You don't need the child to be present to add money to an account held in your name. If the account is a joint account and the child is old enough to have online access, they can also deposit money themselves through the bank's app.

Can I open multiple savings accounts for the same child at different banks?

Yes. There's no limit to how many accounts you can open for a child, and having accounts at different banks doesn't affect the child's credit or cause problems. Some parents open one account for regular savings and another for a specific goal like college or a car. Just keep track of which account is which so you don't lose track of the money.

What happens if I need to withdraw money from the child's account before they turn 18?

If the account is a custodial account in your name, you can withdraw money anytime for any reason—you have full control. If it's a joint account, you can also withdraw money, though some banks may ask why. The money belongs to you as the parent or guardian, so there's no legal restriction on withdrawing it. However, if you've told the child the money is theirs to save, taking it out may damage trust.

Do I need to report the child's savings account on my taxes?

You don't report the account itself on your taxes, but you do report any interest the child earns. If the account earned more than $10 in interest during the year, the bank sends you a Form 1099-INT, and you report that interest on your tax return. The amount is usually small enough that it doesn't change your taxes, but you still need to include it.