You need the child's Social Security number, a birth certificate, and a parent or guardian's ID

Most banks let you open a savings account for a newborn as soon as you have a birth certificate and Social Security number. You do not need to wait until the child is older. The account is held in the child's name, but a parent or legal guardian controls it until the child reaches the age of majority (usually 18, sometimes 21 depending on your state and the bank).

The process is straightforward: bring the documents to a branch, or open the account online if the bank offers it. Some banks have no minimum balance for children's accounts. Others require a small deposit to start. A few waive monthly fees for accounts opened for minors. The account works like any other savings account—money earns interest, and the child can withdraw funds once they reach the age set by the bank's account agreement.

Key Takeaways

  • You will need the child's birth certificate, Social Security number, and a parent or guardian's government-issued ID to open an account.
  • Most banks allow you to open an account in the child's name with a parent or guardian as the custodian, giving you control until the child turns 18 or 21.
  • Some banks offer children's savings accounts with no monthly fees, no minimum balance, or both—compare options before you choose.
  • Interest rates on children's savings accounts vary widely; a few banks offer higher rates for accounts opened for minors, but most offer standard savings rates.
  • Once the child reaches the age set by the bank, the account may convert to a standard account, or the child may need to sign new paperwork to take control.

What documents you need to bring

Bring the child's birth certificate (original or certified copy) and Social Security card or the Social Security number itself. The bank will ask for proof of the child's identity and proof that you are the parent or legal guardian. A certified birth certificate serves both purposes—it proves the child exists and proves your relationship to them.

You will also need your own government-issued ID—a driver's license, passport, or state ID card. Some banks ask for a second form of ID from you, such as a utility bill or recent tax return showing your address. Call the branch or check the bank's website before you go; requirements vary by institution and sometimes by state.

If you are not the biological parent but are the legal guardian, bring the guardianship papers or adoption decree. If the child's other parent will not be present, you do not need their permission to open the account, but some banks ask whether the account is for a single parent or both parents jointly. This affects how the account is titled and who can access it later.

Opening the account in person versus online

Most large banks and many credit unions let you open a children's account online. You upload photos of the birth certificate and your ID, enter the child's Social Security number, and fund the account by linking a bank account you already own. The process usually takes a few minutes, and the account is active within one to three business days.

Opening in person at a branch takes longer but gives you a chance to ask questions about the account's features—whether it earns interest, what the interest rate is, whether there are monthly fees, and what happens when the child turns 18. Some banks have staff trained to explain children's accounts; others treat it as a standard savings account. If you want to understand the details before you commit, a branch visit is worth the time.

Online opening is faster if you already have an account at the same bank. If you do not, you may need to open a parent account first, then add the child's account. Some banks do not allow online opening of children's accounts and require you to visit a branch in person.

How the account is titled and who controls it

The account is opened in the child's name, not yours. The title will read something like "John Smith, a minor, by Jane Smith, parent and custodian" or "Custodial Account for John Smith." This means the account belongs to the child, but you have legal authority to manage it until the child reaches the age of majority.

You can deposit money, withdraw money, and make decisions about the account without the child's permission. The child cannot access the account or make withdrawals on their own until they reach the age set by the bank—usually 18, sometimes 21. At that point, the bank will ask the child to sign new paperwork, and control transfers to them.

If both parents are present and want joint control, some banks will title the account as a joint custodial account. This means either parent can manage it. If only one parent opens the account, that parent has sole control, and the other parent cannot access it without being added later. Adding a second custodian usually requires a trip to the branch or a phone call to the bank.

Interest rates and fees for children's accounts

Interest rates on children's savings accounts vary. Some banks offer the same rate as their standard savings account, which is often very low—sometimes 0.01% or less. A few banks offer higher rates specifically for children's accounts, ranging from 0.5% to 2% or more, but these change frequently and depend on the account type and balance.

Monthly maintenance fees are rare for children's accounts. Most banks waive fees for accounts opened for minors, or charge no fee if the balance stays above a certain amount (often $100 or $500). Some banks charge a fee only if the account is inactive for a set period, such as one year. Read the fee schedule before you open the account; it is usually available on the bank's website or from a staff member at the branch.

Overdraft fees and ATM fees apply the same way they do to adult accounts. If the account is linked to a debit card (not all children's accounts are), out-of-network ATM withdrawals may cost $2 to $3 per transaction. Some banks waive ATM fees for their own machines but charge for others.

When and how the account converts as the child grows

As the child approaches the age of majority, the bank will contact you about what happens next. Some banks automatically convert the account to a standard savings account in the child's name once they turn 18 or 21. Others require the child to sign new paperwork or visit a branch to take control. A few banks close the account and ask you to open a new one in the child's name alone.

The timing varies. Some banks send a notice 30 to 60 days before the conversion date. Others wait until after the child's birthday. If you do not hear from the bank, call them a few months before the child turns 18 to ask what the process is. You do not want the account to be frozen or closed without warning.

Once the child takes control, they can withdraw money, close the account, or manage it on their own. If the account has a debit card, the child can use it immediately. If not, they may need to request one or set up online access. The account will no longer be a "children's account"—it becomes a standard account with standard rules and fees.

Why opening an account early matters

Opening an account when the child is born gives the money time to earn interest, even if the rate is low. A $1,000 deposit earning 0.5% per year grows to about $1,051 after ten years. That is not much, but it is more than keeping cash at home. If you find a bank offering a higher rate for children's accounts, the difference is larger.

An early account also teaches the child about saving and banking. As they grow older, you can show them the account statement, explain how interest works, and involve them in decisions about deposits and withdrawals. Some parents use children's accounts to set aside money for college, a car, or a first apartment.

A bank account also creates a financial record for the child. When they turn 18 and need to open their own accounts or borrow money, having a history of responsible account management can help. It is not required, but it is useful.

Frequently Asked Questions

Can I open an account if I do not have the child's Social Security number yet?

Most banks require the Social Security number before they open the account. If you have not received it yet, you can apply for one at the Social Security Administration office or online. The process usually takes one to two weeks. Some banks let you open the account with a temporary ID number and update it later, but this is uncommon. Call your bank to ask whether they offer this option.

What if I want to add money to the account later—can I do it online?

Yes. Once the account is open, you can deposit money online by transferring from your own bank account, or in person at a branch. Some banks let you set up automatic deposits, such as a monthly transfer from your paycheck. You can also deposit cash at a branch or ATM if the bank offers that service.

Does opening a children's account affect the child's credit score?

No. A savings account does not appear on a credit report and does not affect credit scores. Credit scores are based on borrowing and repayment history—loans, credit cards, and payment records. A savings account is separate from credit.

Can I close the account before the child turns 18?

Yes. As the custodian, you can close the account at any time. The bank will return the balance to you. Some banks charge a fee for closing an account early, but many do not. If you want to close it, visit a branch or call the bank and ask what the process is.

What happens if I add money to the account—does it count as a gift for tax purposes?

Money you deposit into your own child's account is not a taxable gift. The annual gift tax limit applies only to gifts to people other than your spouse and children. Interest earned in the account may be taxable to the child, depending on the amount and your tax situation. Consult a tax professional if you have questions about your specific case.