How to open a savings account for your baby

It’s never too early to start building financial security for your child. Starting a savings fund now (even with small amounts) can make a real difference over time. Whether you’re setting aside money for their first bike or a cushion for the unexpected, the earlier the better.

Here’s what to know about finding the right savings account for your baby, and how family money tools like Greenlight can grow with them as they get older.

What is a baby savings account?

A savings account for a baby is typically a custodial or joint account, meaning a parent or guardian manages it until the child is old enough to take over. The money stays in your child’s name, but the adult oversees deposits, withdrawals, and account settings.

Most baby savings accounts work just like any other savings account: You earn interest over time and can make deposits whenever you’d like. Some parents go the traditional bank route. Others look into high-yield savings accounts, 529 plans, or custodial investment accounts to grow their money over time. But if you’re just getting started, the goal is to find a safe, low-pressure way to begin saving for your baby’s future.

#1 family finance and safety app

#1 family finance and safety app

Teach your kids and teens to earn, save, and invest with Greenlight.

Use code GLBLOG for one month, on us.*

Try Greenlight today

Benefits of opening a savings account early

Opening a savings account now is about setting the tone for the years ahead. Even if your baby’s not crawling yet, you’re already showing what it means to plan ahead.

But it can translate into real dollars, too. Here’s why starting early can pay off:

• Compound interest adds up. The earlier you start saving, the more time your money has to grow, even with small deposits.

• It’s an excellent place for gifts. Birthdays, holidays, baby showers… instead of more toys, family members can contribute to your child’s future.

• You’ll be ready for future expenses. From preschool tuition to extracurriculars, a little cushion can go a long way.

• It sets the tone for money conversations. When the time comes, your child will already have a savings foundation to build on.

What to look for in a savings account for your baby

Not all savings accounts are the same, especially when you’re setting one up for a child. So, what should you look for? Start with the basics. 

A good baby savings option should have no or very low minimums, no monthly fees, and a solid interest rate to help your money grow. It should also give you full access and control as the parent, plus an easy way to manage everything online or through an app.

How to open a savings account for your baby

Here’s how it usually goes:

• Choose where to open the account. It could be a bank, credit union, or an app that offers joint or custodial accounts for minors.

• Come prepared with a few basics. Most places will ask for your baby’s Social Security number, birth certificate, and your own ID.

• Open the account and make a deposit. It doesn’t have to be big, just enough to get it going.

• Set up recurring contributions. You can automate transfers from your checking account or even invite family to pitch in for birthdays and holidays.

Traditional banks work just fine, but if you’re looking for more comprehensive features, tools like Greenlight can grow with your child and adapt as they start learning about money.

How Greenlight can help

Greenlight’s debit card for kids isn’t a traditional baby savings account, but it’s built to grow with your child. 

With Greenlight, you can

• Set aside money in a savings category just for your child

• Create savings goals together (like a first bike or summer camp)

• Earn up to 6% in savings rewards*, depending on your plan

• Set your own interest rate with parent-paid interest

• Automate chores and allowance

• Stay in full control with visibility through the app

As your child grows, they can start learning how to manage their own money, save for goals, watch their balance grow, and build smart habits from the start.

Teach smart saving habits. From rounding up purchases to setting savings goals — Greenlight's award-winning money app helps families save. Try Greenlight, one month, risk-free.†

*Greenlight Core families can earn 2% per annum, Greenlight Max families can earn 3% per annum, Greenlight Infinity families can earn 5% per annum, and Greenlight Family Shield families can earn 6% per annum on an average daily savings balance of up to $5,000 per family. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.