You can open a savings account for a baby using a parent or guardian's Social Security number and the baby's tax ID

Most banks let you open a savings account for a child under 18 by linking it to a parent or guardian's account. You will need the baby's Social Security number or, if you do not have one yet, an Individual Taxpayer Identification Number (ITIN). Some banks require the adult to be a joint owner on the account; others let you set up a custodial account where the adult manages the money until the child reaches the age of majority (usually 18 or 21, depending on your state).

The process itself takes about 15 to 30 minutes in person or online. You bring a government-issued ID, proof of address, and the baby's Social Security card or birth certificate. If the baby does not have a Social Security number yet, you can request one at the hospital when the baby is born, or apply through your local Social Security office afterward — that process takes about two weeks.

Key Takeaways

  • You need the baby's Social Security number or ITIN to open an account, which you can request at birth or through Social Security afterward.
  • Most banks offer either joint accounts (where the parent is listed as owner) or custodial accounts (where the parent manages the money until the child reaches adulthood).
  • Custodial accounts in most states transfer to the child's full control at age 18 or 21, so plan accordingly if you want to restrict access longer.
  • High-yield savings accounts for children typically earn more interest than standard savings, though rates vary by bank and change over time.
  • Opening an account online usually takes 15 to 30 minutes and requires only a government ID, proof of address, and the baby's Social Security number.

Joint accounts versus custodial accounts

A joint account lists both the parent and child as owners. The parent has full control while the child is young, but the child's name appears on the account from day one. When the child turns 18, they typically have equal access to the money without needing permission. Some parents use joint accounts for simplicity, since there is no separate paperwork or transfer process.

A custodial account (also called a Uniform Transfers to Minors Act account, or UTMA account) is held in the child's name but managed by the parent as custodian. The parent controls the money until the child reaches the age of majority — 18 in most states, 21 in others. At that point, the account automatically transfers to the child's full control. Custodial accounts are often used for longer-term savings because they create a clear handoff date.

The choice depends on your intent. If you want to save money the child will access at 18, a custodial account makes the transfer automatic. If you want to keep control longer or use the account for ongoing household expenses, a joint account may be simpler. Ask the bank which option they offer — not all banks support both.

What you need to bring to open the account

Bring your government-issued photo ID (driver's license or passport), a recent utility bill or bank statement as proof of address, and the baby's Social Security card or birth certificate. If the baby does not have a Social Security number yet, bring the birth certificate and ask the bank whether they can hold the application until you provide the number, or whether you need to come back once you have it.

If you are opening the account online, you will upload photos of these documents instead of showing originals. Some banks also ask for the baby's date of birth and the parent's date of birth. A few banks require an in-person visit for accounts held by minors, so call ahead if you want to open the account without leaving home.

Getting a Social Security number for your baby

You can request a Social Security number at the hospital when your baby is born — most hospitals offer this as part of the birth registration process. If you did not request one then, you can apply through your local Social Security office or online at ssa.gov. The process takes about two weeks by mail.

Bring the baby's birth certificate, your ID, and proof of address to the Social Security office. If you apply by mail, send certified copies of the birth certificate and your ID. You will receive the Social Security card in the mail. Once you have the number, you can open the savings account.

Banks and accounts that work well for children

Most major banks (Chase, Bank of America, Wells Fargo, Citibank) offer children's savings accounts with low or no minimum balance requirements. Credit unions often have similar products and may offer slightly higher interest rates. Online banks like Marcus, Ally, and American Express Personal Savings sometimes offer higher rates on savings accounts, though they may not have physical branches if you prefer in-person service.

Some banks offer tiered interest rates that reward children for saving — for example, higher rates on balances above a certain amount. Others offer no interest at all. Compare the interest rate, any monthly fees, and the minimum balance requirement before opening. Interest rates change frequently, so check the bank's website for current rates rather than relying on rates from months ago.

A few banks offer accounts specifically designed to teach children about money, with features like parental controls, spending limits, or the ability to set savings goals. These are not necessary to start saving, but some families find them useful as the child gets older.

How interest works on a child's savings account

Interest is money the bank pays you for keeping your money in the account. The amount depends on the interest rate (called the Annual Percentage Yield, or APY) and how much money is in the account. If the account has an APY of 4.5% and you have $1,000 in it, the bank will pay you roughly $45 per year in interest — though the exact amount varies depending on how the bank calculates it.

Interest rates for savings accounts change over time and vary widely between banks. High-yield savings accounts typically pay more interest than standard savings accounts at big banks. The trade-off is that high-yield accounts are usually online-only, with no physical branches. If you plan to deposit money regularly and leave it untouched for years, a high-yield account will grow faster. If you think you might need to withdraw money frequently, a standard account at a bank with branches may be more convenient.

Interest is taxable income. If the account earns more than $5 in interest per year, the bank will send you a tax form (1099-INT) at the end of the year. You will report this on your tax return. For most children's accounts, the interest earned is small enough that it does not trigger a tax bill, but it is worth knowing.

Setting up automatic deposits to build the habit

Many banks let you set up automatic transfers from your checking account to the child's savings account on a schedule you choose — weekly, monthly, or whenever you want. This removes the need to remember to deposit money and makes it easier to save consistently. You can set up automatic deposits through your bank's website or mobile app, or by calling the bank.

Some parents set up automatic deposits tied to milestones — for example, depositing money on the child's birthday, or whenever the child reaches a savings goal. Others deposit a fixed amount each month. The amount does not matter; what matters is that the money stays in the account and earns interest over time.

Frequently Asked Questions

Can I open a savings account for a baby without a Social Security number?

Most banks require a Social Security number or ITIN to open an account. Some banks will let you open the account with a birth certificate and add the Social Security number later, but this is rare. It is faster to request the Social Security number at the hospital or through Social Security before you open the account.

What happens to the account when the child turns 18?

With a custodial account, the account transfers to the child's full control at age 18 (or 21 in some states). With a joint account, the child typically has equal access to the money at 18, though the parent remains on the account. Check with your bank about their specific policy.

Can I withdraw money from the child's savings account?

With a joint account, yes — you are listed as an owner. With a custodial account, you can withdraw money as the custodian, but the money must be used for the child's benefit (education, medical care, living expenses). Using custodial account money for your own expenses can have tax consequences. Ask your bank or a tax professional if you are unsure.

Do I need to report the child's savings account on my taxes?

You do not report the account itself, but you do report any interest the account earns. If the account earns more than $5 in interest per year, the bank sends you a 1099-INT form. Report this interest on your tax return. For most children's accounts with small balances, the interest is minimal.

What is the difference between a savings account and a money market account for a child?

A money market account typically requires a higher minimum balance and offers higher interest rates, but limits how many withdrawals you can make per month. A savings account has lower minimums and fewer withdrawal limits, but usually pays less interest. For a child's account, a standard savings account is usually simpler and more flexible.