How to Open a Savings Account for a Baby

Jul 28, 2023 By Triston Martin

Are you expecting a new baby soon, or do you know someone who is? Congratulations! Nurturing your little one's future security should start as early in life as possible — and one of the best ways to get started is to open a savings account for them.

While it may seem intimidating, with just a few steps, you can begin setting aside money now that will have tremendous benefits down the road. Read on to learn how opening a savings account for your baby can secure their financial future.

Why Open a Savings Account for a Baby?

1. Start Building Security Early

Opening a savings account for your baby is an investment in their long-term security. By setting aside funds, you’re establishing a financial foundation that they can use to cover living and educational expenses as they grow up — from daycare costs during childhood to college tuition and beyond. This money can also be used to pay off loans or help purchase a home in the future.

2. Take Advantage of Compound Interest

When you open a savings account, you may have the option of earning interest on your deposits over time — and compounding interest makes those earnings even more powerful.

Compound interest is interest earned on the original deposited amount and any accumulated interest added to the balance. Over time, this interest can add up to a large sum — helping your baby’s savings account grow even faster.

3. Safeguard Your Savings

When you open a savings account for your baby, you’ll likely have the option of adding additional protections such as FDIC insurance or other security measures.

This means that if anything were to happen to the financial institution where your baby’s funds are held, their money would remain safe and secure — giving you one less worry in an otherwise uncertain world.

4. Get Started Now

Opening a savings account for your baby is one of the best gifts you can give them — and it’s never too early to get started.

Entering an account now will provide many benefits later in life, helping your little one become financially secure as they grow up. It’s a simple step that can make all the difference!

How to Open a Savings Account for a Baby?

1. Choose a Financial Institution

The first step in opening a savings account for your baby is to find the right financial institution. Look for one that offers competitive interest rates, security features, and other perks such as online banking or customer service support.

Consider checking out local banks and credit unions — they may have more flexible terms than larger institutions.

2. Gather Documentation

Once you’ve decided on a financial institution, you’ll need to provide certain documentation when opening an account for your baby.

Depending on the institution, you may need to bring the baby’s birth certificate, Social Security number, and some form of identification for yourself (such as a driver's license). Be sure to ask in advance what paperwork is required.

3. Set Up Automatic Deposits

Setting up automatic deposits is a great way to ensure that your baby’s savings account continues to grow over time.

Consider linking the account to your own so that you can easily transfer money into the baby’s account regularly — for example, when you get paid each month or when tax refunds are issued.

This will help the account balance increase steadily and provide more financial security for your little one.

4. Monitor the Account Regularly

Once you’ve opened a savings account for your baby, monitor it regularly to ensure everything is going according to plan.

Keep an eye out for any changes in fees or minimum balance requirements that may occur over time, and consider adjusting your deposits if necessary.

Regularly checking in on the account will help ensure your baby’s savings continue growing.

Opening a savings account for your baby is an important step towards their long-term financial security — and it doesn't have to be intimidating! With just a few simple steps, you can begin setting aside funds now that will provide tremendous benefits down the road.

Types of Savings Accounts for Newborns

1. Traditional Savings Accounts

Traditional savings accounts are typically the most common type of account for newborns, and they offer a secure way to save money with the potential to earn interest over time.

These accounts often come with low minimum balance requirements, making them an ideal option for those just starting their financial journey.

• Low Minimum Balance Requirements: Most traditional savings accounts require only a small initial deposit to open and maintain — usually between $25 and $500 — which is great if you’re just starting.

• Interest Earnings: Many traditional savings accounts also offer competitive interest rates on deposits, allowing you to grow your baby’s funds further over time.

2. High-Yield Savings Accounts

High-yield savings accounts may be the way for those looking for higher-interest earnings. These accounts offer a higher rate of return than traditional savings accounts and can help your little one’s money grow faster over time.

• Low Fees: Most high-yield savings accounts come with few or no fees — an important factor to consider when selecting the right account for your baby.

• Higher Interest Earnings: The key benefit of these types of accounts is their much higher interest rates on deposits, helping your baby’s funds accumulate even more quickly over time.

3. Custodial Accounts

Custodial accounts allow someone — typically a parent or guardian — to open and manage an account for another person, such as a newborn. With this type of account, the child is considered the “beneficiary” but does not have access to the funds until adulthood.

• Tax Benefits: Depending on your situation, custodial accounts may also come with tax benefits that can help you save money over time.

• Ease of Use: Custodial accounts are relatively easy to set up and maintain, which makes them a popular choice among parents looking to save for their children's future.

What to look for in a savings account for a child

1. Low Fees: Look for a savings account with minimal or no associated fees, as these can quickly eat away at your baby’s hard-earned funds.

2. Competitive Interest Rates: Comparing interest rates among different financial institutions is essential to maximize the money your baby’s savings will earn over time.

3. Security Features: Make sure that the institution you choose offers secure banking features such as fraud protection and encryption technology — this way if anything were to happen to the financial institution, your baby's funds would remain safe and secure.

4. Flexible Terms: Many banks and credit unions offer more flexible terms than larger institutions — so consider checking out local options to find one that best fits your needs.

5. Customer Service and Support: Good customer service is essential when setting up and managing a savings account for your baby. Look for an institution that will. Although opening a savings account for your baby may seem daunting, it doesn’t have to be!


Can I open a savings account for my infant?

Yes! Most banks allow you to open a savings account for minors, including infants. Talk to your bank about requirements and options for setting up an account.

When should I start saving money for my baby?

It's never too early to start saving for your little one's future. Consider opening a savings account as soon as possible after they are born so that the fund can grow over time. Talk to your financial advisor about the best ways to get started.

How do I open a savings account for my unborn baby?

If you'd like to open a savings account before your baby is born, talk to your bank about your options. You may need documents such as the birth certificate or Social Security card after the baby arrives to complete the process.


Setting aside money now in a savings account for your baby is one of the best investments you can make for their future. Putting money away early gives them access to compound interest and long-term growth while establishing good financial habits from an early age. Take the time to research the best options and get started today! You'll be glad you did.

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