How to Set up a Savings Account for a Child (niece, nephew, grandchild etc).

Are you a parent wishing to start your child or children off on the right path or are you an aunty, uncle or grandparent who wishes to put aside some money now for a loved one? If so then follow these simple steps to organising a savings account for and on behalf of someone else.

Instructions

Difficulty: Moderate

Things You’ll Need:

• access to the internet and/or information from various banking institutions
• birth certificate (or certified copy of the child's birth certificate)
• 100 points of identification to prove your identity

1. Firstly, research the various banks and savings institutions in your area. The internet is a great source of information and the easiest way to access what the institutions have to offer. Make sure there are no hidden fees associated with opening an account (if it is for a child then they should not have to pay any account keeping fees due to their age and status).
2. Opening an account in the name of a child or on behalf of a child is a great idea. You can provide the details to other family members so that they can deposit into the account as well.
3. Ensure that you have a copy of the child's birth certificate as well as 100 points of identification for yourself as you will need to prove that you are who you say you are in order to be the "trustee" of the account (the person responsible for the account until the child reaches at least 18 years of age, the person holding the account "on/in trust for the child").
4. Once the account is open then it doesn't matter who deposits money into the account, no one can remove the money, not even the trustee of the account, it is all kept safe for the said child.
5. Both the child and the person opening the account will be registered on the account. When the child has attained at least 18 years of age and you wish to hand over the account then you will both need to attend at a branch in order to sign over the account to the child.

Tips & Warnings

• Check out your own personal banking institution first, as you are an existing customer they may offer further benefits as well as already being able to easily identify you from current records.