As a grandparent, you can help defray some of your infant grandchild's future expenses by opening a savings account for her. College tuition and health care are two examples of expenses that you can help with by regularly contributing to the savings account. Additionally, when your grandchild is older, you can help teach her the value of saving by allowing her to help manage the account. Many banks offer savings accounts that are specifically tailored for children.
Visit or call your bank's local branch to find out if it has savings accounts for children. Make a note of all benefits and incentives that are offered and the minimum balance and requirements needed to open the account.
Contact several other banks and ask about their benefits, requirements and incentives to open a child's savings account. Compare your bank's benefits with the other banks and select the institution that best fits your needs.
Collect the information you need to open the account. For example, you need your grandchild's Social Security number. If your grandchild does not have a Social Security number, ask her parents to apply for one as soon as possible. However, some banks may allow you to open an account for your grandchild without the number as long as you provide it at a later date.
Fill out the savings account application. Include the adult, such as yourself or her parent, who will also be on the account. Although you can visit a local branch of a bank to open the account, many banks also allow customers to apply for accounts online. Additionally, you can select the date that you want your grandchild to have access to the account on the application.
Make a deposit into the account after submitting the completed application. The bank representative will give you all the relevant documents.
- Renasant Bank: Children's Savings
- Investopedia: Opening Your Child's First Bank Account
- U.S. Social Security Administration: Social Security Numbers For Children
- FinancialWeb: Create a Savings Account For Your Child
- Social Security Online: Request a Social Security Number for a Newborn
- Bank of America: UTMA Savings Account for Children
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