{"id":17651,"date":"2026-01-23T01:02:00","date_gmt":"2026-01-23T07:02:00","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=17651"},"modified":"2026-02-06T14:24:21","modified_gmt":"2026-02-06T20:24:21","slug":"how-to-open-a-savings-account-for-a-minor","status":"publish","type":"post","link":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/how-to-open-a-savings-account-for-a-minor\/","title":{"rendered":"How to open a savings account for a child"},"content":{"rendered":"\n

Children grow up fast\u2014so it\u2019s never too soon for family and friends to take steps to help them reach their greatest potential. One way to do that is by opening and funding a savings account for a minor. It\u2019s not only an opportunity to teach them the value of saving long before they\u2019ll ever need the money\u2014it\u2019s also a great way to build a strong financial foundation. Over time, money from that savings account might help them pay for college, their first car, or even their starter home.<\/p>\n\n\n\n

Before you open a savings account for a minor\u2014sometimes known as a custodial account, which you\u2019ll manage until transferring it to the child once they\u2019re old enough to take on the responsibility\u2014you\u2019ll want to understand how it works. Here\u2019s everything you need to know to start building your child’s financial foundation.<\/p>\n\n\n\n

What to look for in a savings account for a child<\/h2>\n\n\n\n

Opening a savings account for a child can be as basic as opening a traditional savings account that accumulates interest over time. But not all custodial accounts are created equal\u2014and you have an array of savings account options<\/a>.<\/p>\n\n\n\n

As with any financial undertaking, your priorities will determine which type of custodial savings account is right for you. If you don\u2019t want the child to be aware of the account, you might consider opening a high interest rate savings account in your own name\u2014and then have the funds unofficially earmarked for the minor.<\/p>\n\n\n\n

Another option is to open a joint savings account<\/a> shared between yourself and the child\u2019s parent\u2014a common choice among those saving on behalf of their grandkids. For any custodial account, you\u2019ll want to ensure that the child\u2019s parents are aware of the account. Why? The child may receive a 1099 form at tax time, potentially requiring the interest accrued on the account to be reported to the IRS.<\/p>\n\n\n\n

If you want the minor involved in the savings account to improve their financial literacy, you can consider a custodial account that you control until it\u2019s handed over when the child reaches age 18 or 21 (it varies by state).<\/p>\n\n\n\n

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Alternatively, you can open a certificate of deposit (CD) or a money market account as a custodial account. A CD allows you to lock in an interest rate that can be even higher than that of a savings account. A money market account, meanwhile, offers you a competitive interest rate like a savings account and sometimes even a debit card for easy access to the money.<\/p>\n\n\n\n

What you need to open a savings account for a child<\/h2>\n\n\n\n

The first step to applying for a custodial account\u2014such as one that grandparents might open for a grandchild<\/a>\u2014is to select the type of account you\u2019d like to open and then contact your bank. As with any account application, you\u2019ll need to provide personal information like your name, date of birth, address, and contact information\u2014as well as your Taxpayer Identification Number (TIN). (Your TIN is often the same as your Social Security number.) You\u2019ll also need to provide the child\u2019s identifying information for a custodial account.<\/p>\n\n\n\n\n\n\n\n

How to get the most out of a savings account for a child<\/h2>\n\n\n\n

Want to open a savings account for a child that will have a lasting impact? The key is to make deposits on a regular basis.<\/a> A savings account can grow significantly over time through compound interest<\/a>\u2014and the best way to maximize that interest is to deposit funds into the account over the years.<\/p>\n\n\n\n

Another way to make a financial gift have a true legacy is to involve the child in the account to teach them about money and to help them develop smart financial habits. Take time to show them how their savings are growing by reviewing the account statements together. By including them in the account, making them part of the account process will help them understand the value of saving and the financial benefits of planning ahead.<\/p>\n\n\n\n<\/div>\n\n\n

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Making [children] part of the account process will help them understand the value of saving and the financial benefits of planning ahead.<\/p>\n <\/blockquote>\n<\/div>\n\n\n

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Start helping a child build their financial foundation with a savings account<\/h2>\n\n\n\n

Opening a savings account for a child can help them get a leg up on the future\u2014so be sure you\u2019re doing it right. It\u2019s important to research all your account options, make occasional deposits to maximize interest earned, and communicate early and often about ways they can responsibly manage the money once it leaves your care.<\/p>\n\n\n\n

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.<\/p>\n\n\n\n

The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., or its affiliates.<\/p>\n\n\n\n

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Here\u2019s everything you need to know to help your child kick-start their savings journey early so they are set up for success long-term.<\/p>\n","protected":false},"author":15,"featured_media":17671,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[76,77],"tags":[112,117,35,131,127,3467,109,130,32,128,39],"class_list":["post-17651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking101","category-online-savings-account","tag-cd","tag-compound-interest","tag-financial-education","tag-high-interest-rate-accounts","tag-how-to","tag-joint-account","tag-kids-money","tag-long-term-saving","tag-online-savings-account","tag-opening-an-account","tag-saving"],"acf":[],"_links":{"self":[{"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/17651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/comments?post=17651"}],"version-history":[{"count":12,"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/17651\/revisions"}],"predecessor-version":[{"id":22980,"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/17651\/revisions\/22980"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media\/17671"}],"wp:attachment":[{"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media?parent=17651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/categories?post=17651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bbstage.mcdpartners.dev\/online-banking\/banking-topics\/wp-json\/wp\/v2\/tags?post=17651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}