How to Open a Savings Account for an Infant Grandchild
The birth of a new child is both a wonderful experience and a great responsibility. Infants come with many expenses, and most of the financial burden falls on the parents. Grandparents are able to provide a foundation for their grandchild's future by starting a savings account for him.
The birth of a new child is both a wonderful experience and a great responsibility. Infants come with many expenses, and most of the financial burden falls on the parents. Grandparents are able to provide a foundation for their grandchild's future by starting a savings account for him. As the grandchild gets older, the savings account can be used to teach him financial responsibility.
Step 1
Choose the bank or credit union where you want to open the savings account. This can be at the institution where you bank or where the infant's parents bank. Call around to see which bank offers incentives for accounts for infants. Some banks offer higher interest rates for savings accounts for minors or special bonuses at certain milestones, such as graduations.
Step 2
Open the savings account in the infant's name. You will need information on the child such as the child's birth date and social security number. If the infant does not have his social security number yet, you can notify the bank that it is not yet available, and the bank will let you open the savings account as long as the SSN of the joint owner is available.
Step 3
Decide who will be the joint owner of the account. This can be either you are the infant's parent. A joint owner must sign for the account and be responsible for fees, since an infant cannot be held responsible.
Step 4
Deposit money into the account. Starting the account while your grandchild is an infant gives you plenty of time save a significant amount for your grandchild over his childhood. Choose a date that you will regularly make deposits to the infant's savings account and by the time he is 18, he will have a nice nest egg.
Tip
Online banking gives you easy access to the savings account's records and some institutions allow you to deposit funds into the account online. This makes it easier to save money for your grandchild.
Keep all records of the account and deposit information a safe place. You want to be able to accurately assess how much you have saved for your infant grandchild.