Opening a Savings Account for Your Baby!

When should I open the account? How much and how often should I make deposits? Where should I open the account? When will my child receive the savings? These are all questions you may ask yourself when you are considering opening a savings account for your baby. Although this may not be the first thing that comes to mind when your little one arrives, starting a savings account is one of the greatest things you can do NOW to open doors for your child’s future!

When should I open the savings account?

My recommendation is to open your child’s savings account as soon as you receive their birth certificate. The benefit of opening a savings account for your baby as soon as they are born is that the savings will start accumulating immediately.

If you commit to making a small deposit out of every bi-weekly paycheck, and add interest on top of that, your child will have a substantial savings available when the time comes. If you deposit $20 out of each paycheck, by the time your child is 18 they will have approximately $10,000.

This amount of money could be enough for years of college tuition, a down payment on a home, or to purchase a used car, which are all life changing opportunities for a young adult.

Opening a Savings Account for Your Baby: Everything You Need to Know!



How much and how often should I make deposits?

This is based on what you can/want to do. If you really want to commit to starting a savings for your child, I suggest setting up an automatic deposit from each paycheck into your child’s savings account.

Even if you only deposit $5 every two weeks, over 18 years your child’s account will reach THOUSANDS! If you would rather deposit larger amounts less frequently, for example each year when you receive your taxes, that works too. You must decide what the best option is for you and your finances.

Make a decision and stick to it but do not over commit. The point of this account is to start a savings for your child’s future, not to cause stress on you and your family, so look at your budget and consider what you can afford to invest.

Where should I open the savings account? 

There are countless options when considering where to open a savings account for your baby; from national to local institutions, from credit unions to banks. My recommendation is to do research on interest rates at each bank in your area.

The higher the interest rate, the more your child’s savings will grow. National and local banks tend to have similar rates while credit unions have MUCH higher interest rates in comparison.

Credit unions also require a lower opening deposit, minimum account balance, and have lower (if any) fees. If you qualify to become a member at a credit union I highly recommend doing so. Typically credit unions base memberships on your employer, family, or location.

If you do not qualify you may want to open the account at the same bank as your own account, whether it be local or national. This will allow easy access and transfers between accounts.

While larger banks offer features such as mobile banking, automatic transfers, and overdraft protection, many local banks offer personal touches like birthday cards and small donations to your child’s account.

When will my child receive their savings?

This varies based on the bank or credit union you decide to go with. Typically the account is owned by you and your child until your child reaches the age of 18, which is when they gain access to the account.

Some establishments will provide an ATM card for the child even earlier, if you decide. Until your child turns 18 you will have full access to their account.

Opening a Savings Account for Your Baby: Everything You Need to Know!



Opening a savings account for your baby will provide peace of mind for you and your child. A savings account is a great foundation for your child’s future, providing the stability for them to make choice’s and introducing opportunities they may not have had otherwise. Interest rates are on the rise so now is the time to make a commitment to your child’s future by opening your baby’s savings account today!


Have more questions about opening a savings account for your baby? Let me know in the comments!



If you enjoyed this post check out How to Make Money From Home and How to Survive the First Six Weeks with Your Newborn!












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