Yes, you can open a bank account for your newborn, and you'll be the account owner until they reach the age of majority
Banks allow you to open a savings or checking account in your child's name while they are still an infant. You act as the custodian or joint owner, meaning you control the account and make all decisions about deposits and withdrawals until your child turns 18 or 21, depending on your state. The account belongs to your child legally, but you manage it on their behalf.
Most banks have no minimum age requirement to open an account for a child. Some institutions even offer accounts specifically designed for minors, with features like parental controls and no monthly fees. You will need your child's Social Security number, a government-issued ID of your own, and proof of address. The process typically takes 15 to 30 minutes in person or online, depending on the bank.
Key Takeaways
- You can open a custodial account for your newborn at most banks using their Social Security number and your ID, and you control the account until they reach age of majority.
- Custodial accounts are held in your child's name for tax purposes, meaning interest earned is reported under their Social Security number rather than yours.
- Many banks offer accounts designed for minors with no monthly fees, no minimum balance, and parental controls that let you monitor spending.
- Once your child turns 18 or 21, the account transitions to their full control, and you lose access unless they add you as an authorized user.
What you'll need to open the account
Bring your newborn's Social Security number, your government-issued photo ID, and a recent utility bill or lease showing your current address. Some banks also ask for your child's birth certificate, though this is less common. If you're opening the account online, you may be able to upload images of these documents instead of visiting a branch.
If your child does not yet have a 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. The process to get a Social Security number for a newborn takes about two weeks and can be done at the hospital, through the mail, or at your local Social Security office.
Custodial accounts versus joint accounts
A custodial account is held entirely in your child's name, with you listed as the custodian. The money belongs to your child from day one, and you are legally required to use it for their benefit. When your child reaches age of majority (18 in most states, 21 in a few), the account becomes theirs to control completely, and you lose access.
A joint account is held in both your name and your child's name. You both have equal access and control, and either of you can withdraw money. Joint accounts are simpler to manage while your child is young, but they create complications later: the account does not automatically transfer to your child at age 18, and creditors or tax authorities can potentially reach the funds if you face legal or financial trouble.
For a newborn, a custodial account is usually the better choice because it keeps the money legally separate from your own finances and teaches your child that the account belongs to them. If you want to save money for your child's education specifically, a 529 college savings plan offers tax advantages that a regular savings account does not, though it has restrictions on how the money can be used.
How interest and taxes work on a child's account
Interest earned in a custodial account is reported under your child's Social Security number, not yours. This means your child may owe taxes on the interest if it exceeds a certain threshold. For 2024, a dependent child owes no federal income tax on unearned income (like interest) up to $1,450 per year. Above that amount, the excess is taxed at your child's rate, which is usually lower than yours.
You do not claim the interest as your own income, and you do not get a tax deduction for money you deposit into the account. The account is a straightforward savings vehicle: money goes in, interest accrues, and your child owns it all. If you are saving a large amount for your child's future, talk to a tax professional about whether a 529 plan or other savings vehicle makes sense for your situation.
What happens when your child turns 18
At age 18 (or 21 in some states), the account automatically becomes your child's sole property and responsibility. You lose access unless your child adds you as an authorized user. The bank will notify you of this transition, usually a few months before it happens, so you have time to discuss the account with your child and plan the handoff.
Your child can then use the account however they wish—they can keep it open, move the money elsewhere, or close it. If you have been using the account to teach them about saving, this is a good time to have a conversation about their financial goals and how they want to manage the money going forward.
Where to open an account for your newborn
Most banks and credit unions offer accounts for minors. Large national banks like Chase, Bank of America, and Wells Fargo have dedicated youth or teen accounts. Credit unions often have lower fees and simpler terms. Online banks like Ally and Marcus by Goldman Sachs also offer accounts for minors, though you may need to verify your identity through video call rather than in person.
Compare a few options based on monthly fees (many waive them for minors), minimum balance requirements, and whether the bank offers online tools for parents to monitor the account. Some accounts come with a debit card once your child is older, which can be useful for teaching them about spending. Read the terms carefully to understand when fees kick in and what happens at age of majority.
Common reasons parents open accounts for newborns
Many parents open accounts to collect gifts from family members—grandparents and relatives often want a place to deposit money for the child's future. Others use the account to set aside money for specific goals like a first car, college, or a major purchase when the child turns 18. Some parents straightforward want to start teaching their child about money and banking from an early age.
If you are saving for college specifically, a 529 plan may offer better tax advantages than a regular savings account. If you are saving for a shorter-term goal or want maximum flexibility, a custodial savings account is simpler and has fewer restrictions. The right choice depends on how much you plan to save, when you plan to use the money, and what your state's 529 plan offers.
Frequently Asked Questions
Do I need my newborn's Social Security number before opening an account?
Most banks require it, but some will let you open the account and add the number later. If your child does not have one yet, you can request it from the Social Security Administration—the process takes about two weeks. Many hospitals help you explore before you leave with your newborn.
Can I put money into my child's account and then take it back out for myself?
Legally, no. A custodial account is held for your child's benefit, and the money belongs to them. Using it for your own expenses can create tax and legal problems. If you need to save money separately from your child's account, open your own account instead.
What happens if I die before my child turns 18?
The account remains your child's property and is managed by the guardian or executor of your estate. The money does not go back to your other assets. Make sure your will or trust names a guardian who knows about the account and can manage it responsibly.
Can my child access the account before age 18?
Not without your permission. You control all withdrawals until they reach age of majority. Some banks let you set up alerts or spending limits so your child can use a debit card with boundaries you set.
Is a custodial account the same as a 529 college savings plan?
No. A custodial account is a regular savings account held in your child's name. A 529 plan is a tax-advantaged education savings account with restrictions on how the money can be used. A 529 offers better tax benefits for college savings, but a custodial account is more flexible if you are not sure how the money will be used.