Yes, you can open a bank account for your newborn, and most banks allow it

You can open a savings or checking account in your newborn's name at most banks and credit unions. The account will be held in trust by you (the parent or guardian) until your child turns 18 or 21, depending on the bank and your state. You'll need your child's Social Security number, a birth certificate, and a government-issued ID showing you are the parent or legal guardian.

Some banks have no minimum balance requirement for children's accounts, while others require $25 to $100 to open. Many offer no monthly fees on youth accounts. The main difference between opening an account for a newborn versus an older child is that you'll be the sole signer on the account—your newborn cannot sign anything—so all transactions go through you until they're old enough to be added as a signer.

Key Takeaways

  • You need your newborn's Social Security number and birth certificate to open an account; your government ID proves you are the parent or guardian.
  • Most banks allow you to open a savings account for a newborn with little or no minimum deposit, though some require $25 to $100.
  • You control the account entirely until your child reaches the age of majority (18 or 21, depending on your state and the bank), at which point they can take over.
  • Some banks offer youth accounts with no monthly fees and tools to teach children about money as they grow older.
  • You can fund the account with gifts from family members, money you set aside for your child, or both.

What documents you need to bring

Bring your newborn's birth certificate and Social Security number. If you don't have the Social Security number yet, you can request one from the Social Security Administration before opening the account, or some banks will let you open the account and add the number later. You'll also need your own government-issued photo ID—a driver's license or passport—to prove you are the parent or legal guardian.

If you're opening the account as a guardian rather than a biological parent, bring legal documentation showing guardianship. Some banks may ask for your child's original birth certificate; others accept a certified copy. Call the bank ahead of time to confirm what they need, since requirements vary by institution.

Types of accounts available for newborns

Most banks offer savings accounts for children, which earn a small amount of interest and are designed to teach saving habits. Some also offer checking accounts for children, though these are less common for newborns and more typical for older kids who can use a debit card. A few banks offer custodial accounts or Uniform Transfers to Minors Act (UTMA) accounts, which are tax-advantaged ways to hold money for your child and may be useful if you're receiving large gifts or inheritances.

For most newborns, a basic savings account is the right choice. It's simple, has low or no fees, and lets you deposit money without complexity. Ask the bank whether the account earns interest and what the current rate is—rates vary widely, from nearly 0% at some large banks to 4% or higher at some online banks and credit unions.

How to open the account in person or online

You can open an account at a bank branch in person or online through the bank's website. In-person is often faster if you have all documents ready, because the banker can verify everything on the spot. Online is convenient if you prefer not to visit a branch, though you may need to mail in documents or upload photos of them.

When you open the account, you'll choose whether it's a custodial account (held in trust for your child) or a joint account (with both your name and your child's name on it). For a newborn, custodial is standard—you have full control and responsibility. You'll also set up how the account is funded: by check, transfer from another account, or cash deposit.

When your child can take over the account

At age 18 or 21 (depending on your state and the bank), the account automatically transfers to your child's full control. Some banks send a notice before this happens; others simply convert the account. Your child will then be able to withdraw money, set up transfers, and manage the account independently. You'll no longer have access unless your child adds you as an authorized user.

Before that age, your child can usually be added as an authorized user or signer on the account once they're old enough to understand banking—typically around age 13 or 14. This lets them see the balance, make deposits, and learn how money works while you retain control. Talk to your bank about when and how to add your child as a signer.

Tax implications and reporting

Money in a custodial account belongs to your child, not to you, even though you control it. This matters for taxes. If the account earns interest or investment income, your child may owe tax on it. The bank will send you a Form 1099-INT (for interest) or other tax documents each year if income exceeds a certain threshold—currently $1,300 for 2024, though this changes yearly.

You'll report this income on your child's tax return, not your own. If your child has no other income and the interest is small, they may owe no tax. Talk to a tax professional if the account grows large or earns significant interest, especially if you're using it to hold gifts or inheritances.

Alternatives to a standard bank account

If you want to save for your child's future with tax advantages, consider a 529 college savings plan or a Coverdell Education Savings Account (ESA). These are designed for education expenses and offer tax-free growth if the money is used for school. A custodial brokerage account lets you invest in stocks and mutual funds on your child's behalf, though it comes with more risk and complexity than a savings account.

For most newborns, a simple bank savings account is the best starting point. It's easy to open, safe, and teaches the basics of saving. You can always open a 529 or other account later if you want to save more aggressively for college or other goals.

Frequently Asked Questions

Do I need my newborn's Social Security number before I open the account?

Most banks require it, but some will let you open the account and add the number later. You can request a Social Security number from the Social Security Administration at the hospital when your baby is born, or online at ssa.gov. It typically arrives in the mail within two weeks.

Can I open an account at any bank, or only certain ones?

Most major banks, credit unions, and online banks allow you to open accounts for newborns. Requirements and fees vary, so call ahead or check the bank's website. Credit unions often have lower fees and higher interest rates on savings accounts than large national banks.

What happens if I want to close the account before my child turns 18?

You can close a custodial account at any time as the parent or guardian. The money goes back to you. However, if the account was funded with gifts intended for your child, closing it may create family conflict. Check your bank's policy on closing youth accounts—some require a minimum balance or have other restrictions.

Can I add my spouse or another family member to the account?

Yes, most banks allow you to add another parent or guardian as a co-owner or authorized user. This lets both of you manage the account. Adding someone who is not a parent or guardian (like a grandparent) is less common and depends on the bank's rules and your state's laws.

Will opening a bank account for my newborn affect their credit?

No. A savings or checking account does not appear on a credit report and does not build credit. Credit reports start when your child is older and takes out a loan or credit card. A bank account is simply a place to hold money.