What you need to open a savings account for a child

A parent or legal guardian opens the account by going to a bank or credit union in person with the child and two forms of identification. One ID should be yours (a driver's license works); the other should be the child's (a birth certificate, Social Security card, or passport). The bank will ask for the child's Social Security number, which you can find on their Social Security card or birth certificate.

Most banks let you open an account the same day you visit. Some require a small deposit to start — often $25 to $100, though some have no minimum. A few banks let you open online, but most still require at least one in-person visit to verify identity, especially for minors.

You do not need to bring the child with you to every bank, but many parents do so the child can see the account being opened and understand how it works. Some banks have special events or programs for kids, so it is worth asking when you call ahead.

Key Takeaways

  • You will need your ID, the child's ID (birth certificate or Social Security card), and the child's Social Security number to open an account.
  • Most accounts open the same day you visit the bank in person, though a few banks offer online opening with a follow-up verification step.
  • Joint accounts let you monitor spending and teach money habits, while custodial accounts give the child full control once they reach the age of majority (usually 18 or 21).
  • Monthly fees are rare on youth accounts, but some banks charge if the balance drops below a minimum or if you overdraw.

Joint accounts versus custodial accounts

A joint account has both your name and the child's name on it. You both can deposit and withdraw money, and you can see all transactions. This is the most common choice for younger children because you stay in control and can teach them how to use the account safely. When the child turns 18 or 21 (depending on the state), the account remains joint unless you close it or change it.

A custodial account is held in the child's name, but you manage it as the custodian until they reach the age of majority — usually 18 or 21, depending on your state. Once they turn that age, the account becomes theirs entirely and you lose access. Custodial accounts are often used for money meant as a long-term gift, like money from grandparents or a trust.

For most families saving for a child's everyday needs or teaching them to save, a joint account is simpler and more flexible. Ask the bank which type they recommend for your situation.

Where to open an account: banks versus credit unions

Banks are for-profit businesses with many branches and online services. Credit unions are member-owned nonprofits, usually smaller and more local. Both offer savings accounts for minors, and both are insured by the federal government — your money is protected up to $250,000 per account holder.

Banks often have more locations and online tools, which can be helpful if you travel or prefer managing money on your phone. Credit unions often have lower fees and may offer better interest rates on savings, though the difference is usually small. Some credit unions require you to live or work in a certain area or belong to a specific group to join.

Start by checking which banks and credit unions are near you or where you already have an account. Opening at the same place you bank makes it easier to move money between accounts and ask questions in person.

What to expect during the account opening visit

When you arrive, tell the banker you want to open a savings account for a minor. They will ask for your ID and the child's ID, and they will write down the child's Social Security number. They may ask questions about the account — whether you want a joint or custodial account, how much you plan to deposit, and whether you want online access.

The banker will explain the account terms: the interest rate (how much the bank pays you for keeping money there), any monthly fees, and the minimum balance required to avoid fees. They will also explain how to deposit money — by visiting a branch, using an ATM, or setting up direct deposit from your paycheck.

You will sign paperwork, and the child may be asked to sign as well (even if they cannot read yet — this is normal). The banker will give you a debit card for the account, a checkbook if you requested one, and information about online banking. Some banks mail these items instead, so ask when to expect them.

Fees and features to compare

Most banks charge no monthly fee on youth savings accounts, but some do if your balance falls below a certain amount — often $100 to $500. A few banks charge a small monthly fee no matter what. Ask directly: "Is there a monthly fee on this account?" and "What would make me owe a fee?"

Other fees to ask about: overdraft fees (charged if you spend more than you have), ATM fees (charged if you use another bank's ATM), and fees for closing the account early. Many youth accounts waive these fees or charge less than adult accounts.

Compare interest rates across banks, though the difference is usually small — often less than 1% per year. A savings account at one bank might earn 0.01% interest, while another earns 0.05%. On $500, that is a difference of a few cents per year. The real benefit of a savings account is safety and teaching your child to save, not earning interest.

Setting up online access and teaching your child to use it

Most banks let you set up online banking during the account opening visit or shortly after. You will create a username and password, and you can log in to see the balance, view transactions, and transfer money. Some banks let you set up a separate login for the child so they can see their balance without being able to move money.

Once the account is open, show your child how to check the balance, make a deposit, and watch their money grow. Many banks have apps designed for kids that make this easier and more fun. Some let you set savings goals and track progress toward them.

If you plan to give your child a debit card, talk about how to use it safely: never sharing the PIN, checking the balance regularly, and telling you if the card is lost or stolen. Many parents start by letting their child use the card only with permission, then gradually give more independence as they get older.

What happens as your child gets older

As your child enters their teens, you may want to move from a joint account to one where they have more control. Some banks let you switch the account type without closing it. Others require you to open a new account — usually a teen checking account with a debit card and limited overdraft protection.

Around age 13 or 14, many banks let teens open their own account with parental permission. This account is still monitored by you, but it teaches independence. By age 16 or 17, some teens can open accounts with less parental involvement, though you may still need to co-sign.

When your child turns 18 or 21 (depending on your state and the account type), they can take full control of the account. If you opened a custodial account, it automatically becomes theirs. If you opened a joint account, you can remove yourself or keep the account joint if you both agree.

Frequently Asked Questions

Can I open a savings account for a child without them being present?

Most banks require at least one visit in person with the child to verify their identity, though some let you open online and complete verification by mail or video call. Call ahead to ask your bank's policy — it varies by location and by whether the child is a newborn or older.

What if my child does not have a Social Security number yet?

You can get a Social Security number by explore at your local Social Security office or online at ssa.gov. Bring the child's birth certificate, your ID, and proof of your address. The process usually takes a few weeks. Some banks will let you open an account and add the number later, so ask first.

Can a child have more than one savings account?

Yes. A child can have accounts at multiple banks, and they can have both a savings account and a checking account. Some families open one account for saving and another for spending money. There is no legal limit, though each account counts toward the $250,000 federal insurance limit.

What is the difference between a savings account and a money market account for a minor?

A money market account usually requires a higher minimum balance and offers slightly higher interest rates, but it limits how many times per month you can withdraw. For most children, a regular savings account is simpler and more flexible. Ask your bank whether they offer money market accounts for minors.

Do I need to report the account to the IRS or pay taxes on the interest?

Interest earned on a child's savings account is taxable income, but the amount is usually so small that no tax is owed. If interest exceeds a certain amount in a year (the threshold changes yearly), you may need to file a tax return for the child. Ask your bank or a tax professional if you are unsure.