Yes, but you cannot open it alone

You can open a bank account in your infant's name, but you cannot do it by yourself. The account must be opened by a parent or legal guardian, and the bank will require proof of your relationship to the child and identification for both of you. Your infant will not sign anything — you will sign on their behalf, and you will control the account until they reach the age of majority (18 in most states, 21 in a few).

The account belongs to your child legally, not to you. This matters for taxes and for what happens if you die or face creditors. Money in the account is considered your child's asset, which can affect financial aid calculations later. But during childhood, you manage it completely.

Key Takeaways

  • You will need your infant's Social Security number, birth certificate, and proof of your identity to open the account.
  • The account is a custodial account in your child's name, meaning you control it now but your child owns it legally.
  • Most banks allow you to open an account in-person or online, though some require in-person visits for accounts held by minors.
  • Money in the account counts as your child's asset for tax purposes and may affect college financial aid calculations.
  • You can deposit money, withdraw it, and manage the account freely while your child is a minor — no court approval needed.

What documents you need to bring

Bring your infant's Social Security number (or an Individual Taxpayer Identification Number if they do not have one yet). If you do not have the Social Security number, you can request one from the Social Security Administration before opening the account, or some banks will let you open the account and add the number later.

Bring your infant's birth certificate or certified copy. The bank needs proof that the child exists and that you are the parent or legal guardian named on it. If you are the legal guardian but not the biological parent, bring the guardianship order or adoption papers.

Bring your own government-issued photo ID — a driver's license, passport, or state ID. The bank will verify your identity before letting you open an account in someone else's name. Some banks also ask for a second form of ID or proof of address, such as a utility bill or lease.

The difference between custodial and joint accounts

A custodial account is opened in your child's name with you as the custodian. The child is the owner. You manage the money until they turn 18 or 21 (depending on state law and the account type), at which point the account transfers to them with no action required. This is the standard way to open a bank account for a minor.

A joint account is opened in both your names equally. You are both owners from the start. If you die, the money passes to your child automatically because of the joint ownership — it does not go through your will or estate. Some parents prefer this for simplicity, but it means your child's creditors could theoretically reach the money, and it may complicate things if you face bankruptcy or legal judgment.

Most banks default to a custodial account when you open an account for a minor. If you want a joint account instead, ask the bank directly — not all of them offer it, and some charge higher fees for joint accounts.

How the account transfers when your child turns 18

On the date your child reaches the age of majority (usually their 18th birthday), the custodial account automatically converts to a regular account in their name. You lose the right to manage it or see the balance without their permission. The bank will typically send you and your child a notice a few weeks before the conversion happens.

Some banks let you request an extension if your child is still in high school or if you have a specific reason to keep control longer. This varies by bank and by state law. If you want to keep managing the account past 18, ask your bank what options exist before you open it — some states allow extensions up to 21 or 25 if you set it up that way from the start.

Your child can close the account or move the money whenever they want once they turn 18. There is no requirement that they keep the account open or that they tell you what they do with it.

Tax reporting and financial aid impact

Money in a custodial account is considered your child's income for tax purposes. If the account earns interest or dividends, you will receive a 1099 form in your child's name and Social Security number. The first $1,250 of unearned income (interest, dividends) is typically not taxable for a dependent child, but amounts above that are taxed at your child's rate, which is usually lower than yours.

When your child applies for college financial aid, the account balance counts as their asset. The formula used by most colleges assumes your child will contribute about 20 percent of their assets toward college costs each year. A $10,000 account might reduce financial aid by roughly $2,000 per year. This is one reason some parents choose to keep money in their own name instead, though that has its own tax and legal consequences.

Where to open the account

Most banks and credit unions offer accounts for minors. Call ahead or check the bank's website to confirm they open accounts for infants — a few very small institutions do not. You can open the account in person at a branch or, at many larger banks, online through their website.

Online opening is faster, but some banks require an in-person visit to verify your identity and your child's birth certificate. If you choose online, the bank will usually mail you a debit card and checks within a week or two. If you open in person, you may be able to get a debit card the same day, though most banks do not issue debit cards for accounts held by very young children — you will manage the account through your own online access or by visiting a branch.

Credit unions often have lower fees and higher interest rates on savings accounts than banks, but you must be a member to open an account. Membership usually requires living or working in a specific area or belonging to a particular group. If you are already a member of a credit union, ask whether they offer accounts for minors.

Fees and minimum balances

Many banks waive monthly fees on accounts for minors, but some charge $5 to $15 per month if the balance falls below a minimum (often $100 to $500). A few banks charge no fees and have no minimum balance requirement. Compare the terms before you open — a small difference in fees adds up over 18 years.

Interest rates on savings accounts for minors are the same as for adults at the same bank. Most traditional banks pay very little interest (often under 0.1 percent), while some online banks and credit unions pay higher rates (currently 4 to 5 percent at some institutions, though this changes with Federal Reserve policy). If you plan to keep money in the account long-term, the interest rate matters more than the monthly fee.

Frequently Asked Questions

Can I open a bank account for my infant without their Social Security number?

Some banks will let you open the account and add the Social Security number later, but most require it upfront. If your child does not have one yet, you can request it from the Social Security Administration online or by mail — it usually arrives within two weeks. Call the bank before you visit to ask whether they will hold an account open while you wait for the number.

What happens if I die — does my child get the money automatically?

In a custodial account, the money belongs to your child, so it passes to them outside your will. If your child is very young, a court may appoint a guardian to manage the money until they turn 18. In a joint account, the money passes to your child automatically because of the joint ownership. Either way, your child receives the funds, but the process is simpler with a joint account.

Can my child's other parent withdraw money from the account?

Only if their name is on the account as a custodian or joint owner. If only you opened it in your name as custodian, the other parent cannot withdraw money without your permission. If you want both parents to have access, tell the bank when you open the account — most will add a second custodian at no extra cost.

Will this account hurt my child's chances of getting financial aid?

It will reduce the amount of aid they receive, because colleges count student assets when calculating how much the family can contribute. The impact is usually smaller than if you kept the money in your own name, but it is not zero. If you expect to need financial aid, ask a financial aid officer at the college how much a specific account balance would reduce aid before you decide where to keep the money.

Can I use the money in the account for my own expenses?

Legally, no. The money belongs to your child, and using it for your own expenses is considered a breach of your duty as custodian. In practice, enforcement is rare unless someone challenges you — a relative, the child themselves after they turn 18, or a creditor. But the risk exists, and the money can be recovered from you if a court finds you misused it.