What a piggy bank account is and how to start one

A piggy bank account is a savings account designed for children, usually opened by a parent or guardian at a bank or credit union. It works like a regular savings account—money goes in, earns a small amount of interest, and stays there until the child withdraws it—but with features built for teaching kids about saving. Most piggy bank accounts have no monthly fees, low or zero minimum balances, and tools that let parents monitor activity without giving kids full control.

To open one, you'll need to visit a bank or credit union in person or online with a parent or guardian, a child's Social Security number, and a form of ID. The process takes 15 to 30 minutes in a branch or 10 to 20 minutes online, depending on the bank. Some banks let you open the account entirely through their app; others require at least one visit to a physical location.

The account belongs to the child but is managed by the parent until the child reaches the age of majority (usually 18). At that point, the account converts to a standard account in the child's name alone, or the child can choose to close it and move the money elsewhere.

Key Takeaways

  • A piggy bank account is a savings account for children with no fees, low minimums, and parental controls built in.
  • You need the child's Social Security number, a parent or guardian's ID, and proof of address to open one.
  • Most banks let you open online or in a branch, though some require at least one in-person visit to verify identity.
  • The account is held in the child's name but managed by the parent until the child turns 18.
  • Interest rates on piggy bank accounts are typically very low (often under 0.5% annually), so the main benefit is teaching savings habits, not earning money.

What you need to bring or provide

To open a piggy bank account, gather these documents before you visit the bank or start an online application:

  • The child's Social Security number
  • A parent or guardian's government-issued ID (driver's license, passport, or state ID)
  • Proof of the parent's current address (a utility bill, lease, or mortgage statement dated within the last 60 days)
  • The child's birth certificate (some banks ask for this; others do not)
  • The parent's phone number and email address

If you're opening the account online, you'll upload photos of these documents or enter the information directly. If you're opening in a branch, bring the originals. The bank will verify the information against their records and may ask follow-up questions about the parent's employment or income, though this is less common for children's accounts than for adult accounts.

Some banks also ask whether the account will receive regular deposits or occasional deposits, and whether the parent wants to link it to an existing account at that bank. These answers don't usually affect approval; they help the bank set up the account structure.

Opening an account in person at a branch

Walk into any branch of the bank where you want to open the account with the child and the documents listed above. Tell the teller or a banker that you want to open a piggy bank or youth savings account. They will take you to a desk, verify your ID and the child's Social Security number, and explain the account features—interest rate, withdrawal limits, and any parental controls.

The banker will then fill out an account application form (or have you fill it out on a tablet or computer) and ask you to sign it. The child may also be asked to sign, depending on the bank's policy and the child's age. Once everything is signed, the banker will issue a debit card (if the account includes one) and provide you with the account number, routing number, and login credentials for online banking.

The account is usually active immediately, though it may take one to two business days for the debit card to be activated or for the first deposit to clear if you make one that day. Ask the banker for a receipt and keep it until you receive your first statement online or by mail.

Opening an account online

Visit the bank's website and look for a link labeled "Open an Account," "Youth Savings," or "Piggy Bank." Click it and select the account type. You'll be asked to enter the parent's name, address, phone number, and email, then the child's name, date of birth, and Social Security number.

Next, you'll upload photos of the parent's ID and proof of address (front and back of the ID, and a clear photo of the utility bill or other document). The bank's system will read these automatically and flag any missing information. Once the documents are uploaded, you'll create a username and password for online banking and review the account terms.

After you submit the application, the bank will verify your identity, usually within one to three business days. Some banks use a third-party verification service that may call or text you to confirm information. Once verified, the account is active and you can log in to see the account number and routing number. A debit card will arrive by mail within 7 to 10 business days.

Choosing between banks and credit unions

Banks and credit unions both offer piggy bank accounts, but they differ in a few ways. Banks are for-profit institutions and typically have more branches and online features; credit unions are member-owned and often have lower fees and slightly higher interest rates, though they may have fewer branches and less advanced apps.

For a child's account, the differences matter less than the features you care about. Compare these across your options: whether the account has a monthly fee (most don't, but some charge if the balance drops below a minimum), the interest rate (usually between 0.01% and 0.5% annually), whether the account includes a debit card, and whether the bank offers parental controls that let you set spending limits or receive alerts when the child makes a withdrawal.

If you already bank at an institution, opening a piggy bank account there is usually faster because the bank already has your information on file. If you don't bank anywhere yet, compare three to five options by visiting their websites or calling a branch, then choose the one with the lowest fees and the features that matter most to your family.

Setting up parental controls and monitoring

Once the account is open, log into your online banking portal and look for settings related to the child's account. Most banks let you set a daily spending limit on the debit card (for example, $20 per day), require the child to enter a PIN before each transaction, and send you alerts via email or text when the child makes a withdrawal or when the balance drops below a certain amount.

Some banks also let you pause or freeze the debit card from your phone if the card is lost or if you want to prevent spending temporarily. Others offer a "round-up" feature that automatically transfers small amounts from the parent's account to the child's account when the parent makes a purchase—a way to build savings without the child noticing.

Review these settings when you first open the account and adjust them as the child gets older and more responsible. A 7-year-old might need a $5 daily limit and parental approval for every transaction; a 15-year-old might need only a $50 daily limit and a weekly alert.

What happens when the child turns 18

When the child reaches 18, the account automatically converts to a standard account in their name, or the bank sends a notice asking what they want to do. At this point, the parent's access to the account ends—the parent can no longer see the balance, set spending limits, or receive alerts. The child becomes the sole owner and can withdraw all the money, close the account, or keep it open and continue saving.

Some banks require the young adult to visit a branch or confirm the conversion online; others handle it automatically. Check your bank's policy a few months before the child's 18th birthday so you're not surprised by a notice or a sudden loss of access.

Frequently Asked Questions

Can I open a piggy bank account for a newborn?

Yes. You'll need the child's Social Security number, which you can obtain from the Social Security Administration before or after birth. Some parents open accounts for newborns to start building savings early, though the child won't use the account until they're old enough to understand money.

What if my child loses the debit card?

Call the bank immediately or use your online banking portal to freeze or cancel the card. The bank will issue a replacement card, usually within 7 to 10 business days. You won't be charged for the replacement unless your bank's policy specifies otherwise (most don't charge for the first replacement).

Can the child withdraw money without the parent's permission?

It depends on the bank and the parental controls you set. If you set a daily spending limit and require a PIN, the child can only withdraw up to that limit and must know the PIN. If you don't set controls, the child can withdraw the full balance at an ATM or in a branch. You can change these settings anytime through your online banking portal.

Do piggy bank accounts earn interest?

Yes, but the amount is very small—typically between 0.01% and 0.5% per year. On a $100 balance, you might earn $0.10 to $0.50 per year. The main purpose of a piggy bank account is to teach children about saving, not to earn money.

What if I want to close the account?

Call the bank or visit a branch and ask to close the account. The bank will transfer the balance to your account or issue a check. There are usually no fees for closing an account, but confirm this with your bank before you close it.