How to Open a Savings Account for a Child

Teaching a child how to save money can give them a valuable life lesson. You could let a child deposit their money into a piggy bank or shoe box, or you could take the lesson a step farther and teach them how to grow their money by investing it into a savings account.

Instructions

Difficulty: Easy

1. Compare bank options, including the APY on the account, the minimum amount required to open a savings account, the minimum balance that must be maintained and fees associated with the account. If the child is old enough, he should be involved in this process.
2. Choose a director for the account. Any person under the age of 18 will need a director on the account. The director has access to the account and can make all decisions on the account until the minor becomes an adult. At that point, the responsibility of the account is transferred to the child.
3. Go to the bank with the child. A physical visit to the bank helps a child understand where her money is going to be kept. Along with involving her in the process, the visit allows your child to sign the necessary bank forms. The director of the account must sign the forms as well.
4. Have the required information with you. The child should have his date of birth, his social security number and his home address and telephone numbers. Some banks will require this information from the director of the account.
5. Fill out a deposit slip with the child. He needs to have the minimum amount of money required to open a savings account in his first deposit.
6. Deposit the money into the savings account. Let the child give the deposit slip and money to the teller. Once she gets her receipt, the savings account has been successfully opened and will begin accruing interest.

Tips & Warnings

• There may be tax issues regarding the interest earned on the account.