When Can I Open a Bank Account for My Baby?

Opening a bank account for a baby provides a strong foundation for their financial future. It allows funds to grow over time, potentially benefiting their education, first car, or other significant life events. This introduces children to saving and financial responsibility from an early age.

When You Can Open an Account

There is typically no minimum age requirement for a child to have a savings account. Many financial institutions allow accounts to be opened for newborns, enabling parents or legal guardians to start saving shortly after birth. An adult, usually a parent or legal guardian, must be present and legally responsible for opening and managing the account. Parental consent is generally required during the account opening process. For certain account types, like checking accounts, some banks may have age restrictions, often requiring the minor to be at least 13 years old.

Required Documents

To establish a bank account for a minor, specific documentation is necessary for both the child and the parent or legal guardian. For the child, a birth certificate is typically required to verify age and relationship. The child’s Social Security Number (SSN) is also needed for tax reporting.

The parent or legal guardian opening the account must provide a valid government-issued photo identification, such as a driver’s license or passport. Their Social Security Number (SSN) is required. Proof of address, like a recent utility bill or financial statement, is also requested for identity verification.

Account Ownership Structures

When opening a bank account for a minor, two common ownership structures are custodial accounts and joint accounts. Custodial accounts, such as those established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA), are managed by an adult custodian. Funds deposited into these accounts legally belong to the child, and these contributions are irrevocable. The minor gains full control of the assets upon reaching the age of majority, which is typically 18 or 21 years old, depending on state laws.

While there are no federal limits on contributions to UTMA/UGMA accounts, amounts exceeding the annual gift tax exclusion ($19,000 per recipient in 2024, or $38,000 for married couples making a joint gift) may incur gift tax. The minor is responsible for paying taxes on any investment income, subject to “kiddie tax” rules.

Alternatively, a joint account allows the parent or legal guardian to be a co-owner alongside the child. Both parties have access to and control over the funds. The parent’s Social Security Number is typically used for tax reporting while the child is a minor. This structure allows parents to supervise financial activities and teach money management. Some financial institutions permit joint accounts with children as young as eight years old.

How to Open the Account

Opening a bank account for a baby typically begins by selecting a financial institution that offers minor accounts. Gather the required documents. Accounts can often be opened by visiting a bank branch, or some banks offer online application options, particularly for older minors. During the process, you will complete application forms and make an initial deposit, which can range from no minimum to $25-$100 depending on bank policies. The account will then be activated.