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Use this table to compare bank accounts for your baby. Sort each column by name, APY, fees and minimum opening deposits. You can also compare accounts against each other by checking the Compare box below each provider or using the filters to condense your search options.
When choosing a new account, compare:
Parents have a few different options when it comes to opening a bank account for their babies. Picking the account that’s right for you boils down to one question: When do you want your child to have access to funds in the account?
If you want your child to have unrestricted access to money in the account, a joint savings account is your best option. Many banks and credit unions offer joint savings accounts specifically for children and their parents or guardians. You can open an account in your baby’s name, provided you and your baby meet some basic eligibility criteria. Typically, your child is listed as the primary account holder while you assume the role of the co-owner. Some institutions may require you to be present if your child wants to deposit or withdraw funds, but others don’t. Also, some banks will only let you open a savings account for your baby by visiting a branch, while others will let you open the account online, via email or over the phone. A typical baby account earns interest and doesn’t have any ongoing fees. However, these accounts may have some depository requirements along with restrictions on withdrawals.
If you don’t want your child to have access to their savings until they reach adulthood, you’ll want to open a custodial account for your baby. Custodial accounts come in two flavors: Universal Transfer to Minors Act (UTMA) accounts and Universal Gift to Minors Act (UGMA) accounts. The most significant difference between these options is that UGMA accounts can exclusively hold financial assets, such as cash, stocks and bonds, while UTMA accounts let you transfer other assets such as vehicles, real estate and jewelry. In either case, you’ll have sole access to the account until your child reaches the age of majority in your state.
There are a couple of other considerations to keep in mind before opening a custodial account.
If you exclusively want to use your child’s savings to pay for their education, a 529 Plan is an excellent option. This type of account includes special tax incentives and financial aid benefits when the funds are used to pay for your kid’s education. There are two types of 529 Plans, college savings plans and prepaid tuition plans. You can open a 529 Plan in any state, not just the state you live in. But keep in mind that specific features and benefits may vary from state to state.
If you don’t want your child to have access to saved funds until you permit it, you could open a high-yield savings account in your name and earmark the funds for your young one. That way, the money would be in your name until you decide to transfer it to your child. Savings accounts for adults often have better interest rates than accounts for kids, but there are other factors to consider, such as tax implications.
Different financial institutions have different processes when it comes to opening bank accounts for babies. In some cases, you’ll need to visit a branch with your child, but in other cases, you can do everything online. But generally, banks and credit unions follow the same steps.
To open a bank account for your baby, you’ll need to meet the following eligibility requirements.
Be prepared to provide the following details when opening your baby’s bank account.
No. You’ll need to provide a Social Security number and/or birth certificate, which means you can’t open an account for an unborn baby. But some banks will let you open an account in your name and add the baby’s name after they’re born. You can also open a standard savings account in your own name and transfer the saved funds to a joint account in your child’s name once you’ve received their Social Security number.
Instead of opening a bank account for your baby, you may consider using your existing savings account and earmarking money for your little one. There’s nothing wrong with this, especially if you earn a solid APY. But some savings account for kids, including the one offered by Northpointe Bank, have better interest rates than most high-yield savings accounts for adults. In any case, once your child has developed an understanding and appreciation for the value of dollar, giving them their own savings account can put their financial literacy on the fast track.
Traditional savings accounts let your child add and withdraw funds before they’re 18. While this can be a great way to teach kids to save up for special purchases, there are several alternatives to consider:
Read up on the requirements of opening a kids bank account
Keep these potential drawbacks in mind before opening a savings account for your baby.
Starting a savings account early lets your money accrue interest as a child grows up. Whether you want to open a savings account, custodial account, CD or college savings plan depends on your savings goals and the amount of access you want the child to have.
No matter which option you choose, compare financial institutions to make sure you’re getting the account that will offer the most growth.
Yes, you can open an account for a child who isn’t your son or daughter. You’ll still need to provide identifying details, so you’ll need to let their parents know.
Only if the money is for the child. Even though your name is on the account, the money legally belongs to the child. So you can withdraw money to pay for school expenses or college if they’re not old enough, but you can’t withdraw from the account and use the money for yourself.
No, most banks don’t offer checking accounts for children under 13.
Cassidy Horton is a writer for Finder, specializing in banking and kids’ debit cards. She’s been featured on Legal Zoom, MSN, and Consolidated Credit and has a Bachelor of Science in Public Relations and a Master of Business Administration from Georgia Southern University. When not writing, you can find her exploring the Pacific Northwest and watching endless reruns of The Office.
A bank account that intelligently divvies up your money where you need it for a monthly fee.
A youth savings account with a whopping 7% APY on account balances up to $1,000.
Northpointe Bank’s Kids Savings account earns an unmatched interest rate on balances above $1,000.
A kids savings account with an interest rate that compounds daily but has long hold times for customer service.
A kids’ savings account with a generous interest rate that transitions to a lackluster regular savings account when your child turns 18.
A high-yield savings account that supports multiple currencies.
Bank of Missouri’s Show Me Savers earns 0.1% APY but can’t be opened online.
A checking account that earns up to 1.75% APY and up to $25 in ATM reimbursements.
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Navy Federal’s Visa Buxx card has no fees, but you must qualify for membership with the credit union.
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