Savings Account for a Child

Child Savings Accounts are for young savers ages 10 to 18. We will walk parents and guardians through creating a sound financial foundation for their children, from operational approvals and required links to paperwork needs and transferring to standard accounts.
savings account for a child
Savings Account for a Child
Explore the world of Child Savings Accounts, a customized method for developing early financial habits and responsibilities. The article explains account features, the account-opening process, and how to change to a regular savings account when the kid matures.
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As parents, guardians, or well-wishers, fostering a secure and prosperous future for our children is a shared aspiration. In a world marked by constant change and uncertainty, instilling sound financial habits early on becomes a cornerstone in preparing the next generation for the challenges and opportunities that lie ahead. One powerful tool to kickstart this financial journey is establishing a savings account for your child.

The significance of teaching children about money management cannot be overstated. A savings account designed specifically for children is a practical introduction to the banking system and lays the groundwork for essential financial skills, discipline, and responsibility. In this article, read how to open a savings account for a child. We will explore the potential advantages of opening a savings account for your kid, exploring how it can become a valuable educational tool and a tangible step towards securing their financial future. 

What Exactly is a Child Savings Account?

A Child Savings Account is a specialized financial tool designed to encourage early savings habits and financial literacy in children. Unlike regular savings accounts, which may have age restrictions or limited features for minors, Child Savings Accounts are tailored to meet the unique needs of young savers.

A Child Savings Account is specifically tailored for individuals under 18, providing a financial platform overseen by parents or guardians. Distinguished from Employee Savings or Standard Savings Accounts, opening a Child Savings Account involves unique requirements and distinct advantages.

Unlike adult-oriented accounts, the documentation needed to establish a Child Savings Account varies to accommodate the minor’s status. Parents or guardians are typically required to submit specific documents, ensuring legal guardianship and compliance with age-related regulations. This differentiation ensures that the account management is conducted responsibly and in the child’s best interest.

Here are Key Insights to Remember about Child Savings Accounts:

1. Age-Appropriate Account Operation:

Children aged between 10 and 18 can actively manage a Child Savings Account, provided they have the explicit permission of their parents or guardians. This allows for a gradual introduction to financial responsibility under proper supervision.

2. Mandatory Linkage to Parental or Guardian Account:

An essential requirement for a Child Savings Account is the mandatory linkage to a parent’s or guardian’s account. This ensures responsible oversight, fostering a collaborative approach to financial management between the minor and the overseeing adult.

3. Penalties for Minimum Balance Shortfall:

In the event of a shortfall in maintaining the minimum balance required for the Child Savings Account, the bank imposes penalties. These penalties may be calculated as a percentage of the shortfall or a specific amount, ranging from 100 to 500. This emphasizes the importance of maintaining the stipulated minimum balance.

4. Similar Features to Regular Savings Accounts:

Child Savings Accounts share several features with standard savings accounts. These include issuing an E-mail Statement, opportunities for Balance Enquiries, maintaining a Passbook, providing an ATM Card, and adhering to Daily Withdrawal Limits. These features ensure a familiar and comprehensive banking experience for young savers.

5. Transition to Standard Savings Account at 18:

As a child approaches the age of 18, the Child Savings Account automatically becomes inactive. Consequently, converting the account into a Standard Savings Account is imperative. This transition marks a critical step in the financial journey, aligning with the child’s evolving needs and responsibilities.

Things to Know About Opening a Child Savings Account

Here are key insights to ensure a smooth and informed process of opening a child savings account:

1. Age Criteria and Operational Permissions:

Child Savings Accounts typically cater to minors between 10 and 18. Understanding the specific age criteria is essential, and knowing that operational permissions for the account may require explicit consent from parents or guardians is crucial.

2. Mandatory Linkage to Parental or Guardian Account:

Unlike standard savings accounts, a Child Savings Account necessitates a mandatory linkage to a parent’s or guardian’s account. This linkage ensures that overseeing adults have visibility and control over the financial activities of the minor, promoting a collaborative and supervised approach to money management.

3. Documentation Requirements:

Opening a Child Savings Account involves submitting specific documents, often including proof of identity and address for both the child and the parent or guardian. Being well-prepared with the necessary documentation streamlines the account-opening process.

4. Minimum Balance and Penalty Considerations:

Parents and guardians should know the minimum balance requirements for the Child Savings Account. Falling below this threshold may result in penalties as a percentage of the shortfall or as a fixed amount. Understanding these considerations helps in maintaining the account in good standing.

5. Features and Accessibility:

Child savings accounts share standard features with regular savings accounts, such as the issuance of e-mail statements, provision of a Passport, availability of an ATM card, and adherence to daily withdrawal limits. Knowing these features ensures a comprehensive understanding of the account’s accessibility and functionality.

6. Transition to Standard Savings Account:

It’s crucial to be aware that the Child Savings Account becomes inactive when the child reaches the age of 18. At this juncture, the account needs to be converted into a Standard Savings Account, marking a pivotal transition in the financial journey of the account holder.

Documents Required to Open the Child Savings Account

Here are the essential documents typically required when opening a Child Savings Account:

1. Proof of Identity for the Child:

A primary document establishing the child’s identity is crucial. This may include a copy of the child’s birth certificate, passport, or government-issued identification document.

2. Proof of Residence for the Child:

Verification of the child’s residence is commonly required. Documents such as a utility bill, school identification card, or a residence certificate issued by a relevant authority may be valid proof.

3. Proof of Identity for the Parent or Guardian:

Given the supervisory role of parents or guardians in managing the Child Savings Account, proof of their identity is mandatory. This typically involves submitting a copy of the parent’s or guardian’s passport, driver’s license, or any government-issued identification document.

4. Proof of Residence for the Parent or Guardian:

Similar to the child, the overseeing adult is also required to provide proof of residence. This may include utility bills, rental agreements, or any official document confirming the parent’s or guardian’s address.

5. Passport-size Photographs:

Submission of recent passport-sized photographs of both the child and the parent or guardian is a standard requirement. These photographs aid in visually identifying the account holders and are an integral part of the account-opening process.

6. Duly Filled Account Opening Form:

A comprehensive account opening form, providing essential details about the child and the overseeing adult, is a fundamental requirement.


Here are some features of a child savings account: 

  • Monthly Average Balance (MAB) is not a stipulated requirement for the Child Savings Account.
  • The account has a cap on the maximum balance, with a limit of Rs. 10 lakh.
  • Account holders are provided with a checkbook, enhancing transactional flexibility.
  • Enables convenient and secure banking on the go through mobile banking services.
  • An automatic sweep-in facility with a minimum threshold of Rs. 20,000 is available.
  • Account holders are issued a personalized ATM-cum-Debit Card featuring a photo ID.


Savings Accounts are investments in a child’s financial future. Money management is more than just a matter of financial transactions; it lays the groundwork for mindful and informed investing. With the help of the information given above, you can easily open a savings account for your child and foster a responsible financial mindset from an early age.


Can I open a savings account for a child?

You certainly can. To start a savings account for your child, you must supply information such as your child’s name, birthday, and Social Security number. In addition, you provide your driver’s license number, address, phone number, and email address.

Which bank is best for a child’s saving account in USA?

The best bank for a child account depends on account features, interest rates, and accessibility. Popular choices include banks like Capital One, Chase First Banking, and Alliant Credit Union, which offer dedicated child savings accounts with features tailored to young savers.

Which bank gives ATMs to those under 18?

Various banks offer ATMs for children under 18, example, Chase First Banking debit card enables children to spend, save, and withdraw money from over 15,000 Chase ATMs. There are no minimum deposits or monthly fees; parents may register an account for their kids aged 6 to 17. The usage limits and features may vary, so checking with the specific bank is advisable.

What type of savings account is best for a baby?

A joint savings account with a parent or guardian is a common and practical choice for babies. Many banks offer specific savings accounts designed for minors, allowing parents to oversee and manage the account until the child reaches an age where they can take control. These accounts often come with features like no minimum balance requirements and educational benefits.

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Team Beem

Team Beem

Team Beem brings you the latest in the world of personal finance to you. From tips and tricks on how to manage money to how to get cash for emergencies, Beem is your destination for all the information you need to be smart about your money.

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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