What a piggy bank account actually is
A piggy bank account is a savings account designed for children, usually opened by a parent or guardian. It works like any other bank account — money goes in, earns a small amount of interest, and the child can withdraw it — but with features built around teaching kids how money works. Most banks call them by different names: youth accounts, kids savings accounts, teen checking accounts, or junior accounts.
The account belongs to the child, but a parent or guardian controls it until the child reaches the age set by the bank (usually 13 to 18, depending on the institution). After that, the child can manage it independently. Some accounts let kids use a debit card; others are savings-only. The mechanics are the same as a regular account — deposits, withdrawals, interest — but the rules and features are simpler.
Key Takeaways
- Most banks require a parent or guardian to open the account in person with a child's Social Security number and proof of identity for both adults.
- Some banks let you open a youth account online if you already have an account with them; others require an in-person visit.
- The parent's name appears on the account as the custodian, and the parent can see all transactions, but the account is legally the child's.
- Interest rates on piggy bank accounts are typically very low (often under 0.05% annually), so the real value is teaching savings habits, not earning money.
- You can move the account to a different bank later if you find better terms or want different features.
What you need to bring to open an account
You will need documents for both the parent or guardian and the child. Bring a government-issued photo ID for yourself — a driver's license, passport, or state ID card. Bring the child's Social Security number (you may need the actual card or a document showing it). Some banks also ask for proof of address, such as a recent utility bill or lease agreement in your name.
A few banks accept an online process if you already have an account with them and can verify your identity through their app or website. Most banks, however, require you to visit a branch in person. Call ahead to confirm what documents the specific bank needs — requirements vary slightly between institutions and sometimes between branches of the same bank.
How to choose which bank to use
The main differences between piggy bank accounts are the interest rate, whether the child gets a debit card, monthly fees, and minimum balance requirements. Interest rates on youth savings accounts are typically very low — often 0.01% to 0.05% per year — so the rate itself rarely matters much. What matters more is whether the account has a monthly fee (many do not) and whether a minimum balance is required to avoid one.
Decide whether you want the child to have a debit card. Some accounts include one; others are savings-only. A debit card teaches spending and budgeting but also means the child can withdraw money whenever they want. A savings-only account is better for teaching the habit of keeping money set aside. Large national banks (Bank of America, Wells Fargo, Chase) offer youth accounts, as do many credit unions and online banks. Credit unions often have lower fees and slightly better rates, but you have to be a member to open an account.
The steps to open the account in person
Go to a branch of the bank you have chosen with the child and the documents listed above. Tell the teller or banker you want to open a youth savings account. They will ask you to fill out an process form with the child's name, date of birth, Social Security number, and your information as the custodian. You will sign the form; the child may be asked to sign as well, depending on the bank's policy.
The banker will verify your identity and the child's information, then set up the account. This usually takes 10 to 15 minutes. You will receive a receipt with the account number and routing number. If the account includes a debit card, the bank will either issue it on the spot or mail it to you within 5 to 10 business days. Some banks also give you a temporary card number you can use online right away.
Opening an account online if the bank allows it
If you already have an account with a bank that offers online youth account opening, log into your account on the bank's website or app. Look for a link to open a new account or a "products" section. Select the youth or kids savings account option. You will be asked to provide the child's name, date of birth, and Social Security number, and to verify your identity (usually by answering security questions or entering a code sent to your phone).
The process takes about 10 minutes. The account opens when ready, and you can deposit money right away using a transfer from your existing account at the same bank. A debit card, if included, will be mailed to the address on file. Not all banks offer online opening for youth accounts, so check with your bank first — if the option is not available on their website, you will need to visit a branch.
What happens after the account opens
You can deposit money into the account by transferring from your own account at the same bank, by visiting a branch and depositing cash or a check, or by setting up automatic transfers (for example, a weekly allowance). The child's name and your name both appear on statements and online banking access. You can see every transaction; the child can see their own transactions if they have online access, depending on the bank's rules.
Interest accrues monthly or daily, depending on the bank, and is added to the account balance. The amount is small — a $100 balance earning 0.05% annually earns about 5 cents per year — but it teaches the concept of interest. When the child turns 13 or 18 (the age varies by bank), the account automatically converts to a regular youth or adult account, and the child can manage it independently. You can close the account at any time by visiting a branch or calling the bank.
Moving the account to a different bank later
If you want to switch to a different bank, you do not have to close the original account right away. Open the new account at the second bank using the same process. Once it is open, transfer the balance from the old account to the new one. You can do this by requesting a wire transfer, by writing a check to yourself and depositing it, or by asking the new bank to initiate an ACH transfer (a bank-to-bank electronic move that usually takes 1 to 3 business days).
After the money has moved, you can close the old account. Call the original bank or visit a branch and ask to close the account. Confirm that all automatic transfers or direct deposits have been redirected to the new account before you close it. There is no penalty for closing an account early, and no limit on how many times you can move the account.
Frequently Asked Questions
Can I open a piggy bank account without bringing the child to the bank?
Most banks require the child to be present in person, especially for the first account opening. A few banks allow you to open an account online if you are already a customer, but you will still need the child's Social Security number and date of birth. Call your bank to ask whether they offer online opening for youth accounts.
What age can a child have their own account without a parent?
This varies by bank, but most require a parent or guardian until the child is 13 to 18 years old. At that age, the account automatically converts to a regular account the child can manage alone. Some banks let you remove yourself as custodian earlier if you choose. Check your bank's policy for the specific age.
Can I set up automatic deposits, like an allowance?
Yes. Most banks let you set up automatic transfers from your account to the child's account on a schedule you choose — weekly, biweekly, or monthly. You can do this through online banking or by asking a banker at a branch. This teaches the child to expect and plan for regular deposits.
Will the child's piggy bank account affect their credit score?
No. Savings accounts do not appear on credit reports and do not affect credit scores. Only credit accounts (credit cards, loans) show up on credit reports. A piggy bank account is purely a savings tool.
What happens to the account if I want to close it?
You can close a youth account at any time by visiting a branch or calling the bank. The bank will transfer the remaining balance to you or to another account you specify. There is no fee or penalty for closing early.