What you need to open a child's savings account

Most banks let you open a savings account for a child under 18 with just a parent or guardian present. You will need your own government-issued ID, the child's Social Security number, and proof of your address — a utility bill, lease, or recent bank statement works. Some banks also ask for the child's birth certificate, though not all require it.

The specific documents vary by bank. Call ahead or check the bank's website to confirm what they need before you go in. Online banks sometimes have different requirements than branches, and some do not offer accounts for minors at all, so verify this first.

You do not need the child to be present at most banks, though some prefer it. If the child is old enough to sign their name, bringing them can speed up the process. For infants and toddlers, a parent or guardian can complete the entire transaction alone.

Key Takeaways

  • You need your ID, the child's Social Security number, and proof of your address to open most child savings accounts.
  • Joint accounts let you manage the money while the child is young, but the child gains full control at age 18 or 21 depending on your state.
  • Custodial accounts (UTMA or UGMA) let you invest the money and defer taxes, but the child controls it at a set age and you cannot take it back.
  • Interest rates on child savings accounts are usually very low, so the account's main purpose is teaching money habits rather than earning returns.
  • Some banks offer no-fee accounts for minors, while others charge monthly fees unless you maintain a minimum balance.

Joint accounts versus custodial accounts

A joint account is the simplest option. You and the child are both owners, you control the money while they are young, and you can withdraw or spend it as needed. The account stays in your control until the child reaches the age of majority — usually 18, sometimes 21 depending on your state and the bank's rules. At that point, the child legally owns the money and can do what they want with it, including withdraw it all.

A custodial account (called a UTMA or UGMA account depending on your state) is different. You hold the money in trust for the child, but it belongs to them from day one for tax purposes. The child gains full control at a set age — often 18 or 21, but your state law determines this, not you. Once they take control, you cannot take the money back. Custodial accounts are useful if you want to invest the money or take advantage of tax breaks, but they require more paperwork to set up and you lose control at a fixed date.

For most families saving small amounts, a joint account is simpler. Use a custodial account only if you are setting aside larger sums and want the tax benefits, or if you have a specific reason to keep the money legally separate from your own assets.

Where to open the account

Traditional banks, credit unions, and online banks all offer child savings accounts. Traditional banks have the advantage of a physical branch where you can ask questions in person, but they usually pay very low interest rates and may charge monthly fees. Credit unions often have lower fees and slightly better rates, and membership is sometimes open to anyone in your area. Online banks typically have no monthly fees and higher interest rates, but you cannot walk into a branch if you have questions.

Compare a few options before deciding. Look at the interest rate (called APY), any monthly maintenance fees, the minimum balance required to avoid fees, and whether the bank offers online access so your child can check the balance as they get older. Some banks waive fees for accounts under $500 or under $1,000, which can matter if you are starting small.

If you are a member of a credit union, start there — credit unions often have better terms for child accounts than banks do. If not, check whether your current bank offers a child account before opening somewhere new, since you may already have a relationship that simplifies the process.

Setting up online access and debit cards

Most banks let you set up online banking for a child account right away, though the child may not be able to log in themselves until they reach a certain age — often 13 or 16. You can monitor the account and make transfers online even if the child cannot yet. This is useful for teaching them to check their balance without handling cash.

Debit cards for child accounts are optional and vary by bank. Some banks issue debit cards automatically; others require you to request one. A few do not offer debit cards for minors at all. If you want the child to be able to make purchases or withdraw cash from an ATM, confirm the bank offers this before you open the account. Some banks restrict the card to ATM withdrawals only until the child reaches a certain age.

Debit cards can be a teaching tool — they let a child see money leave the account when they spend it — but they are not required. Many families start with a passbook or online access only, then add a debit card once the child is old enough to understand how it works.

Fees and interest rates to watch

Child savings accounts almost always pay very low interest rates. As of now, most banks pay between 0.01% and 0.05% APY on savings accounts for minors, meaning $100 in the account earns less than a dollar per year. Online banks sometimes pay slightly more — up to 4% or 5% on regular savings accounts — but even that is modest. The account's purpose is usually teaching money habits, not growing wealth.

Monthly maintenance fees are more important to watch. Some banks charge $5 to $10 per month unless you maintain a minimum balance, which can be $100, $500, or $1,000. Other banks waive fees entirely for minors. If you are starting with a small amount, a no-fee account makes more sense than one where fees eat into the balance. Read the fee schedule carefully before opening.

Some banks offer promotional rates for new accounts — for example, 5% APY for the first three months — but these usually expire. Do not choose a bank based on a promotional rate alone. Look at the regular rate you will earn after the promotion ends.

Teaching your child to use the account

Once the account is open, involve your child in checking the balance and understanding how deposits and withdrawals work. Even young children can learn that money goes into the account and stays there until they decide to spend it. As they get older, show them how interest is earned (even if it is just a few cents) and how the balance grows over time.

Some families use child accounts to teach saving for a specific goal — a toy, a bike, a trip. Others use them to deposit birthday money or chore earnings. The specific method matters less than consistency. A child who sees money accumulate in their own account learns differently than one who just receives cash.

When the child reaches their early teens, consider letting them log into the online account themselves to check the balance. By high school, they can help decide what to do with the money — whether to save more, spend it, or move it to a different account. This gradual handoff prepares them for managing their own money as an adult.

What happens when your child turns 18

On the date your child reaches the age of majority in your state — usually 18, sometimes 21 — the account legally becomes theirs alone. You lose the right to withdraw money or make decisions about it. The bank will notify you of this change, and the child will need to confirm they want to keep the account open.

If you have a custodial account, the child gains control on the date set by your state law, and you cannot prevent it. If you have a joint account, you technically remain a co-owner, but the child can withdraw all the money without your permission once they reach the age of majority. Some banks require the child to visit in person or sign new paperwork to take full control; others make the transfer automatic.

Plan ahead if you want to move money out of the account before this happens. If you are saving for college or another goal, discuss it with your child before they turn 18 so there are no surprises about what the money is for.

Frequently Asked Questions

Do I need the child's Social Security number to open an account?

Yes. Banks are required to verify identity for tax purposes, and the Social Security number is how they do this. If your child does not have a number yet, you can request one from the Social Security Administration before opening the account. The process takes a few weeks by mail or can be faster in person at a local office.

Can I open an account for a child who does not have a Social Security number?

Most banks require a Social Security number or Individual Taxpayer Identification Number (ITIN). A few banks may accept an alternative form of ID, but this is rare. If your child does not have a number, apply for one first. You can do this online at ssa.gov or in person at your local Social Security office.

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

You can deposit money online, by mail, or in person at a branch without the child present. Once the account is open, you have full access as a co-owner on a joint account. For custodial accounts, you can also deposit money anytime — the child does not need to be involved in deposits, only in withdrawals once they reach the age of majority.

Can I open a savings account for a child if I am not their parent?

It depends on the bank and your relationship to the child. Grandparents, aunts, uncles, and legal guardians can usually open accounts, but you will need to prove your relationship and may need the parent's permission. Call the bank first to ask what documentation they need. If you are not a legal guardian, the parent or guardian will likely need to be present or sign paperwork.

Is a savings account or a money market account better for a child?

For most children, a savings account is simpler. Money market accounts usually require a higher minimum balance and limit how many withdrawals you can make per month, which does not fit how children use accounts. Stick with a regular savings account unless you are saving a large amount and want slightly higher interest in exchange for those restrictions.