You can open a savings account for a newborn with just a birth certificate and your ID

Most banks let you open a savings account for a newborn before they have a Social Security number. You will need your child's birth certificate, your own government-issued ID, and proof of your address (like a utility bill or lease). Some banks also ask for the child's Social Security number once you have it, but you can open the account without it and add the number later.

The account will be in your name as the parent or guardian, with your child listed as the beneficiary. This means you control the money until your child reaches the age of majority (usually 18 or 21, depending on your state), but the account legally belongs to them. You can deposit money, earn interest, and withdraw funds as needed.

The main reason to open an account early is to start building a financial record for your child and to have a safe place for gifts, child support payments, or money you want to set aside for their future. Some parents also use these accounts to teach their children about saving once they are old enough to understand.

Key Takeaways

  • You can open a savings account for a newborn using their birth certificate and your ID, even before they have a Social Security number.
  • The account is owned by your child but controlled by you as the parent or guardian until they reach the age of majority.
  • Different account types—custodial accounts, UTMA accounts, and regular savings accounts—offer different features and tax treatment.
  • You will need to visit a bank branch in person; most banks do not allow you to open a newborn account online.
  • Once your child receives a Social Security number, you should add it to the account to may support proper tax reporting on any interest earned.

What documents you need to bring

Bring your child's birth certificate (an official copy, not a photocopy) and your own government-issued photo ID, such as a driver's license or passport. You will also need proof of your current address. A utility bill, lease agreement, or recent bank statement with your name and address will work.

If you already have your child's Social Security number, bring that too. If not, you can still open the account and add the number later once you receive it from the Social Security Administration. The bank will ask you to provide it within a certain timeframe—usually 30 to 60 days—so the account can report interest earnings correctly to the IRS.

Call your bank ahead of time to confirm what they need. Requirements vary slightly between banks, and some may ask for additional documents. A quick phone call saves you a trip if you are missing something.

Custodial accounts versus regular savings accounts

A custodial account is a savings account held in your child's name, with you as the custodian. You manage the money until your child reaches the age of majority, at which point the account transfers to them automatically. The account earns interest in your child's name, which can lower your family's overall tax burden because your child's tax rate is usually lower than yours.

A regular savings account in your name, with your child as a beneficiary, gives you more flexibility. You can use the money for any purpose, and you control it indefinitely. However, the interest is taxed at your rate, not your child's rate. This account is simpler to manage if you think you might need to use the money for family expenses.

Some states also offer UTMA accounts (Uniform Transfers to Minors Act) or UGMA accounts (Uniform Gifts to Minors Act). These are custodial accounts with specific legal rules about when your child gains control of the money. The age varies by state—sometimes 18, sometimes 21. Ask your bank which options they offer and which makes sense for your situation.

Where to open the account

You will need to visit a bank branch in person. Most banks do not allow you to open an account for a newborn online because they need to verify your identity and your child's birth certificate. Call ahead to make sure the branch has time to help you and that they have all the forms you need.

Credit unions often have lower fees and simpler account options than large banks, and many will waive monthly fees for children's accounts. If you are a member of a credit union, that is a good place to start. If not, your local bank or a national bank like Bank of America, Wells Fargo, or Chase all offer newborn savings accounts.

Some banks offer special children's accounts with features like matching deposits (the bank adds money to the account as an incentive) or educational tools to teach kids about saving. These accounts may have different fees or minimum balance requirements, so compare a few options before you decide.

Adding a Social Security number after you receive it

Once you receive your child's Social Security number from the Social Security Administration, contact your bank and ask how to add it to the account. You may be able to do this by phone, online, or by visiting a branch. Some banks ask you to come in person with the Social Security card or a copy of the number.

It is important to add the number within 30 to 60 days of opening the account, because the bank needs it to report interest earnings to the IRS. If you do not provide it, the bank may freeze the account or charge a penalty. Once the number is on file, the bank will send a 1099-INT form to the IRS each year if your child earned more than a small amount of interest (the threshold changes yearly, but is usually around $10).

If your child's Social Security number changes for any reason, contact the bank when ready to update it. Using the wrong number can cause tax filing problems later.

Fees and minimum balances

Many banks waive monthly maintenance fees for children's savings accounts, but some charge a small fee (usually $2 to $5 per month) if you do not keep a minimum balance. Ask about the fee structure before you open the account. Some banks have no minimum balance requirement at all, while others ask for $25 or $100.

Interest rates on savings accounts are low—usually less than 1 percent per year, though this varies with market conditions. The interest your child earns will be reported to the IRS, but unless the amount is substantial, it will not affect your taxes. Some high-yield savings accounts offer slightly better rates, but they may have higher minimum balances or require you to manage the account online.

Read the account agreement carefully before you sign. It will tell you the interest rate, any fees, how to withdraw money, and what happens if the account sits inactive for a long time. Banks sometimes close accounts that have had no activity for several years, so check in occasionally even if you are not making regular deposits.

What happens when your child turns 18

When your child reaches the age of majority (18 or 21, depending on your state and the type of account), a custodial account automatically transfers to them. They will gain full control of the money and can withdraw it, spend it, or manage it however they choose. You will no longer have access to the account unless they add you as an authorized user.

Some banks send a notice before the transfer happens, giving you and your child time to prepare. If your child is not ready to manage the money independently, you can talk to them about their plans and offer guidance. You might also consider moving the money to a different account structure if you want to maintain some control, though this requires your child's consent once they are an adult.

If you opened a regular savings account in your name (rather than a custodial account), the account remains yours. You will need to decide whether to transfer it to your child, close it, or keep it as is. This is a good conversation to have with your child as they approach adulthood.

Frequently Asked Questions

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

Yes. Most banks let you open a savings account using just the birth certificate and your ID. You can add the Social Security number later once you receive it from the Social Security Administration. The bank will ask you to provide it within 30 to 60 days so they can report interest earnings correctly.

What is the difference between a custodial account and a regular savings account?

A custodial account is in your child's name and transfers to them at age 18 or 21. Interest is taxed at their rate, which is usually lower. A regular account in your name gives you more control and flexibility but taxes interest at your rate. Choose based on whether you want the account to be legally your child's or just a savings tool you manage.

Do I have to open the account at a bank, or can I do it online?

You will need to visit a branch in person because the bank must verify your identity and see your child's birth certificate. Most banks do not allow newborn accounts to be opened online. Call ahead to confirm the branch can help you and has the right forms available.

What happens to the account when my child turns 18?

If it is a custodial account, it automatically transfers to your child and they gain full control. You will no longer have access unless they add you as an authorized user. If it is a regular account in your name, it stays yours unless you decide to transfer it to them.

Will the interest my child earns affect my taxes?

Interest earned in a custodial account is taxed at your child's rate, not yours, which is usually lower. Interest in a regular account in your name is taxed at your rate. Either way, the amount is usually small enough that it does not significantly affect your taxes, but the bank will report it to the IRS on a 1099-INT form.