Opening a Savings Account for Baby

While the little one is sleeping, I’m going to try to catch up on my blogging!

On Saturday, I managed to sneak out of the house for an hour — okay, I really didn’t “sneak out” — and left 5-week-old Baby Frugalista home with Daddy so I could head to our local bank and open up a savings account for our daughter. She’s gotten some generous cash gifts from family and friends, so I wanted to start her on the road to saving. And who knows how much college will cost in 18 years!

I needed her birth certificate and Social Security card to open the savings account, which is especially for children under 18. I’m the custodian of the account, so both our names are on it. The account gets better interest than the one for adults! It’s still only 1% interest, but that’s better than the paltry .65% we’re getting. The bank associate even gave me a gift bag for the baby, a little green piggy bank, and a coloring book with crayons. Obviously, she’s too young, but it was nice of them.

So now there’s the start of a nice little nest egg, and we’re going to keep it growing by making a deposit every month.

Did you open a savings account for your child right away? How long did you wait to do it?

4 comments to Opening a Savings Account for Baby

  • Alana

    We opened up the baby’s savings account when I was 4 months pregnant – initially in our names and now his name. He also got a 529 account for Christmas from hubby’s very generous family that is for his college education. We make weekly contributions to both accounts. Plus, he has two piggy banks that we fill with all our spare change and then deposit that change into his savings account when the piggies are full.

  • Congrats on getting out of the house lol.

    I opened up a joint account with the baby so I can deposit checks and then just move it over to ING in a sub-account with his name on it.

  • It’s nice that they are giving babies or children a slightly better savings rate. Though I sort of wonder why, hmmm? At least she has her own savings account and is on her way towards frugality. 😉

    • Penny

      I bet it’s because they won’t be paying as much in interest as they would on an adult account. But I plan to put enough in there to make sure we take full advantage of that whopping 1% interest 😉

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