You can open a savings account for a baby using your Social Security number as the parent or guardian, or by getting the baby's own Social Security number first
A savings account for a baby belongs to the child but is controlled by you until they reach the age of majority (usually 18 or 21, depending on your state). You have two paths: open the account using only your information and Social Security number, or obtain a Social Security number for the baby first and open an account in their name. Most banks let you do either, though some require the baby's own number. The account itself works like any other savings account—money goes in, earns interest, and you can withdraw it whenever you need to.
The main difference between the two approaches is control and tax reporting. If you open the account in your name only, you keep full control and the interest income appears on your tax return. If you open it in the baby's name, the interest gets reported on the baby's Social Security number, which can mean lower taxes on small amounts of interest (the first roughly $1,300 of unearned income is typically not taxed for a dependent child, though this amount changes yearly). Either way, the money belongs to the baby legally once they turn 18, even if you opened it in your name.
Key Takeaways
- You can open a baby's savings account at most banks and credit unions with just your ID and Social Security number, without needing the baby's Social Security number.
- Getting a Social Security number for the baby first lets you open an account in their name, which may lower taxes on interest earned but requires an extra step.
- Custodial accounts and UTMA/UGMA accounts offer tax advantages but lock the money away until the child reaches 18 or 21, depending on your state.
- High-yield savings accounts at online banks typically pay more interest than traditional bank savings accounts, though they may have higher minimum balances.
- Once your child turns 18, the account becomes theirs to control, so choose an account structure you are comfortable with long-term.
Opening an account without a Social Security number for the baby
Most banks and credit unions will let you open a savings account for your baby using only your own identification and Social Security number. You walk in (or go online), provide your ID, Social Security number, and the baby's name and birth date, and the account opens the same day. The bank may ask you to confirm you are the legal parent or guardian, but they typically do not require proof at this stage.
This route is fastest and requires no paperwork beyond what you would bring to open any account. The downside is that the interest income will be reported on your tax return, not the baby's, so you will not benefit from the child's lower tax bracket. For small amounts of money, this usually does not matter—the interest earned on a few thousand dollars is minimal. But if you are setting aside a larger sum or expect regular deposits, the tax difference can add up.
Some banks have age restrictions on who can be listed on an account. A few require the baby to be at least a few days old before opening, and a handful will not add a minor to an account at all. Call your bank before you go in, or check their website for their specific rules on accounts for minors.
Getting a Social Security number for the baby and opening an account in their name
If you want the account in the baby's name from the start, you will need to obtain a Social Security number first. You can request one at the hospital when your baby is born—most hospitals offer this as part of the birth registration process, and it is free. If you did not do it then, you can request one at your local Social Security office or online through the Social Security Administration website.
Once you have the baby's Social Security number, take it to your bank along with your ID and the baby's birth certificate. The bank will open the account in the baby's name, with you listed as the custodian or parent. Interest earned will be reported on the baby's Social Security number, which means the first roughly $1,300 of interest per year is typically not taxed (this threshold changes annually). Beyond that amount, the interest is taxed at the child's rate, which is usually lower than yours.
This approach takes longer because you have to wait for the Social Security number to arrive, but it sets up cleaner tax reporting from the beginning. It also makes it clear to the child later that the account was always theirs, which can be a good teaching moment about saving.
Custodial and UTMA/UGMA accounts for larger savings
If you are planning to save a significant amount for your child—from grandparents, inheritance, or your own contributions—a custodial account or UTMA/UGMA account (Uniform Transfers to Minors Act or Uniform Gifts to Minors Act) offers tax advantages that a regular savings account does not. These accounts are designed specifically for minors and allow you to transfer money that belongs to the child without creating a formal trust.
The tax benefit is the same as a regular account in the baby's name—interest is taxed at the child's rate, which is lower. But custodial accounts also let you invest the money in stocks, bonds, or mutual funds, not just keep it in savings. The trade-off is that once your child reaches the age of majority (18 in most states, 21 in a few), the account becomes theirs to control completely. You cannot tell them how to spend it. If you are saving for college and your child decides to buy a car instead, that is their choice.
Custodial accounts are opened at a bank, brokerage, or investment firm. You will need the baby's Social Security number. The setup is similar to a regular account, but the paperwork specifies that it is a custodial account under your state's UTMA or UGMA law. Ask your bank or brokerage whether they offer these accounts and what the minimum balance is.
Comparing interest rates and account features
A regular savings account at a traditional bank typically pays very little interest—often less than 0.01% per year. An online bank's high-yield savings account usually pays 4% to 5% annually, though rates change frequently. On $1,000, the difference is roughly $40 to $50 per year versus almost nothing at a traditional bank. On $10,000, it is $400 to $500 versus $1.
High-yield accounts are held at online banks (like Marcus, Ally, or Wealthfront) and some credit unions. They have no physical branches, but you can deposit money by transferring it from another account or by mailing a check. Withdrawals work the same way. Most have no monthly fees and no minimum balance, though a few require $500 or $1,000 to open.
The catch is that high-yield rates are not may provide. Banks can lower them whenever they want, and they often do when the Federal Reserve cuts interest rates. But even if rates drop, online banks almost always pay more than traditional banks. If you are opening an account for a baby and plan to leave the money untouched for years, a high-yield account makes sense because the interest compounds over time.
Check the bank's website or call to confirm they allow accounts for minors. Most do, but a few online banks have restrictions. Also ask whether they offer a debit card or other access for the child once they turn 13 or 16—some banks do, which can be useful for teaching money management later.
What documents you need to bring
| Account Type | Documents Needed |
|---|---|
| Account in your name only | Your ID, your Social Security number, baby's name and birth date |
| Account in baby's name (with baby's SSN) | Your ID, your Social Security number, baby's birth certificate, baby's Social Security number |
| Custodial or UTMA/UGMA account | Your ID, your Social Security number, baby's birth certificate, baby's Social Security number |
Most banks now let you open an account online without going in person. If you do this, you will upload photos of your ID and the baby's birth certificate instead of showing them in person. The process usually takes a few minutes, and the account opens the same day or within one business day.
If you open the account in person, bring originals of these documents. A photocopy of the birth certificate is usually fine, but ask the bank first. Some banks will accept a hospital birth announcement or a certified copy from the vital records office if you do not have the official birth certificate yet.
Setting up regular deposits and teaching your child about saving
Once the account is open, you can set up automatic transfers from your checking account to the baby's savings account. Most banks let you schedule these for any day of the month—many parents do it on payday or the first of the month. Even small amounts add up: $50 per month becomes $600 per year, and over 18 years that is $10,800 before interest.
You can also deposit money manually whenever you want—birthday gifts from relatives, tax refunds, or money you want to set aside. Some families ask grandparents to contribute to the account instead of buying toys. Others use it to save money from selling outgrown clothes or baby items.
As your child gets older, you can show them the account and explain what it is for. Many banks let you add a child to the account as an authorized user once they turn 13 or so, which means they can see the balance and sometimes make deposits or withdrawals. This teaches them how savings work and gives them a stake in watching the money grow. You stay in control until they reach the age of majority, but they can learn by watching.
What happens when your child turns 18
If the account is in the baby's name (whether a regular savings account or a custodial account), it becomes the child's to control when they reach 18 in most states or 21 in a few. The bank will contact you and the child to explain this, and the child will need to sign paperwork confirming they understand. After that, they can withdraw money, close the account, or manage it however they want without your permission.
If the account is in your name only, it remains yours. You can transfer the money to the child at any point, but you are not required to. This gives you more control, but it also means the money is technically yours for tax and legal purposes, which can complicate things if you have creditors or if the child later questions whether the money was really meant for them.
Most parents who open accounts in the baby's name do so with the intention of giving the money to the child at 18. If you want to ensure the money is used for a specific purpose (like college), a custodial account with restrictions or a 529 college savings plan might be better choices. But for a simple savings account meant to teach the child about money, a regular account in their name works fine.
Frequently Asked Questions
Can I open a savings account for my baby if I do not have a Social Security number myself?
Most banks require the parent or guardian to have a Social Security number or an ITIN (Individual Taxpayer Identification Number). If you do not have one, contact your bank to ask whether they accept an ITIN. Some do, but not all. You may need to visit a branch in person rather than opening online.
What if I want to open an account but do not have the baby's birth certificate yet?
If you are opening the account in your name only, you do not need the birth certificate—just the baby's name and birth date. If you want the account in the baby's name, you can request a certified copy of the birth certificate from your state's vital records office (usually the county clerk or health department). This typically takes one to two weeks. In the meantime, you can open an account in your name and transfer it later.
Is a 529 college savings plan better than a regular savings account for a baby?
A 529 plan has tax advantages if the money will be used for college—earnings grow tax-free and withdrawals for college are not taxed. But the money must be used for education or you pay taxes and a penalty on the earnings. A regular savings account is more flexible: the child can use the money for anything at 18. If you are unsure whether college is the goal, start with a regular savings account and open a 529 later if you want.
Can I name someone else as the guardian of the account if something happens to me?
If the account is in your name, it is part of your estate and will go to whoever you name in your will. If the account is in the baby's name with you as custodian, most banks let you name a successor custodian—someone who takes over if you die or become unable to manage the account. Ask your bank about this option when you open the account, or add it later by updating the account paperwork.
Do I have to tell my baby about the account, or can I keep it a surprise?
That is entirely up to you. Some parents tell the child about it early to teach them about saving. Others keep it private and give it to the child at 18 as a gift. If the account is in the baby's name, the child will find out eventually (when they turn 18 or when they see mail from the bank). If it is in your name only, you can keep it completely private if you want.