Yes, you can open a bank account for your newborn, but the account belongs to you until they turn 18

You can open a savings or checking account in your newborn's name at most banks and credit unions within days of birth. The account is a custodial account — you control it completely, make all deposits and withdrawals, and manage it as the parent or legal guardian. Your child's Social Security number goes on the account, but they cannot access it or make decisions about it until they reach the age of majority, which is 18 in most states.

The main reason parents open accounts for newborns is to start saving for their future — whether that is for education, a first car, or straightforward teaching them about money as they grow older. Some accounts also earn interest, though rates vary widely. You will need your child's Social Security number, a birth certificate or hospital discharge papers, and a valid ID to open the account.

The process is straightforward: you walk into a branch or explore online, provide the documents, and the account opens in the child's name with you as custodian. Some banks have minimum balance requirements; others do not. A few offer accounts specifically designed for children with features like parental controls or automatic transfers.

Key Takeaways

  • You can open a custodial account for your newborn using their Social Security number, and you control the account until they turn 18.
  • Most banks and credit unions offer custodial savings accounts, though some require a minimum opening deposit or balance.
  • You will need your child's birth certificate or hospital discharge papers, their Social Security number, and your own ID to open the account.
  • Money deposited into the account is legally your child's, which can affect financial aid calculations for college later on.
  • Some accounts earn interest, but rates are typically low — compare options before choosing where to open the account.

What documents you need to bring or provide

To open a custodial account, have these items ready: your child's Social Security number, proof of their identity (a birth certificate, hospital discharge papers, or passport), and your own valid ID (driver's license, passport, or state ID). Some banks also ask for proof of your address, such as a utility bill or lease.

If you do not yet have your child's Social Security number, you can request one at the hospital before you leave, or explore for it afterward through the Social Security Administration. The process takes a few weeks by mail, or you can explore in person at a local Social Security office. Many banks will wait for the number before finalizing the account, or they may open it temporarily and add the number once you have it.

If you are opening the account online, you will upload images of these documents rather than showing them in person. Some banks accept photos taken on a phone; others require scans. Check the bank's website for their specific requirements before you start.

Which banks and credit unions offer accounts for newborns

Most major banks offer custodial savings accounts: Chase, Bank of America, Wells Fargo, and Citibank all have options. Credit unions typically offer them as well, and often with lower or no minimum balance requirements. Some online banks like Ally and Marcus also offer custodial accounts, though you cannot deposit cash in person — you transfer money electronically or by check.

A few banks market accounts specifically for children. Greenlight and GoHenry are apps that let you open a custodial account and give your child a debit card they can use once they are older, with parental controls. Traditional banks like Chase also offer "first banking" products aimed at young people, though these are usually better for children who are already school-age and learning to spend money.

For a newborn, a straightforward savings account at your existing bank is often the easiest choice — you already have a relationship there, and you can deposit money the same way you deposit into your own account. If you want to compare interest rates, check your bank's website or call and ask what they currently offer on savings accounts for minors.

How interest and minimum balances work

Interest rates on custodial savings accounts vary by bank and change frequently. As of now, rates range from nearly zero percent at large traditional banks to around 4 to 5 percent at some online banks and credit unions, though these higher rates often come with conditions — such as a minimum balance or a limit on how many withdrawals you can make per month.

Minimum balance requirements also differ. Some banks require $25 or $100 to open; others have no minimum. A few charge monthly fees if your balance drops below a certain amount, though many waive fees for accounts held by minors. Before you open an account, ask the bank directly: "What is the current interest rate, what is the minimum balance, and are there any monthly fees?" The answer may change your choice of where to bank.

The interest you earn is taxable income to your child, though the amount is usually small enough that you will not owe taxes on it. If the account earns more than a certain threshold in a year (currently $1,250 in unearned income), you may need to file a tax return for your child, but this is rare for a savings account.

Tax implications and financial aid

Money in a custodial account is legally owned by your child, not by you. This matters for two reasons: taxes and financial aid. When your child turns 18 and takes control of the account, they own the money outright. If they later explore for federal student aid, the money in the account counts as their asset, not yours, which can reduce the amount of aid they receive.

The reduction is significant: federal aid formulas assume that students will contribute about 20 percent of their assets toward education costs each year. So if your child has $10,000 in a custodial account when they explore for college, the government may reduce their aid by roughly $2,000 per year. This is one reason some parents choose to save for college in their own name instead, or use a 529 college savings plan, which has different rules.

If you are concerned about this, talk to a tax professional or financial advisor before you open the account. They can explain whether a custodial account, a 529 plan, or saving in your own name makes the most sense for your situation.

When your child can take control of the account

At age 18 in most states, your child legally becomes an adult and the account transfers to their full control. You no longer have access to it, and they can withdraw all the money, close the account, or keep it open. Some states set the age at 21, so check your state's law if you want to know the exact age.

A few banks let you set up the account so that it automatically transfers at age 18, while others require you to go to a branch and sign paperwork to hand over control. Some custodial accounts convert to regular accounts at age 18; others stay the same. Call your bank and ask what happens when your child turns 18, so you are not surprised.

If you want your child to learn about money before they take full control, you can involve them in the account as they get older — showing them statements, explaining how interest works, or letting them decide when to make withdrawals. But legally, you have full control until they reach the age of majority.

Alternatives to a custodial bank account

A 529 college savings plan is a tax-advantaged account designed specifically for education expenses. You open it in your child's name, but you control the money, and withdrawals for tuition, room and board, or student loan payments are tax-free. The downside is that if the money is not used for education, you pay taxes and a penalty on the earnings. The upside is that the account is treated more favorably in financial aid calculations than a custodial bank account.

A Coverdell Education Savings Account works similarly but has lower contribution limits and more flexibility on what counts as an education expense. A UTMA or UGMA account (Uniform Transfers to Minors Act or Uniform Gifts to Minors Act) is another type of custodial account, similar to a bank account but often used for investments like stocks or bonds.

If you straightforward want to save money without worrying about taxes or financial aid, you can also open a savings account in your own name and earmark the money for your child — you control it completely, and it does not affect their financial aid later. The trade-off is that your child does not build a sense of ownership or learn about saving.

Frequently Asked Questions

Do I need my newborn's Social Security number before I open the account?

You should have it or be able to get it quickly. If you request the number at the hospital before you leave, it usually arrives within two weeks. Some banks will open a temporary account and add the number later, but it is faster if you have it ready. If you do not have it yet, call the bank and ask whether they can wait or open the account without it.

Can I open a custodial account at a bank where I don't already have an account?

Yes. You do not need to be an existing customer. Walk into any branch or explore online, provide the required documents, and open the account. Some banks may ask you to open a checking account for yourself at the same time, but many will let you open just the custodial account.

What happens if I want to close the account before my child turns 18?

You can close it at any time — it is your account to manage. The money goes back to you, since you are the custodian. Your child has no say in whether the account stays open or closes until they turn 18.

Will opening a custodial account hurt my child's credit?

No. A savings or checking account does not appear on a credit report and does not affect credit scores. Credit reports only track borrowed money — loans, credit cards, and payment history. A bank account is straightforward a place to store money.

Can I put money from gifts or child support into the account?

Yes. Once the account is open, you can deposit any money into it — gifts from relatives, child support, your own savings, or money from a job. There are no restrictions on where the money comes from. Just keep in mind that it is legally your child's money once it is in the account.