How to Open a Child’s Bank Account

How to Open a Child’s Bank Account

Cornerstone Bank takes you step by step through the process of how to open a child’s bank account.

While it may not be as exciting in the short term as a new toy or a gift card, the gift of a bank account early on in a child’s lifetime can lead to much better habits and responsibility down the road.

This holiday season consider gifting your child or grandchild their first bank account!

It’s never too early to begin researching how to open a child’s bank account. Past studies have shown promise in this practice, some of which cite impressive statistics, like how kids with savings accounts in their name are six times more likely to attend college.

A high interest savings or money market account in Kansas City from Cornerstone Bank may be the perfect place to store future gift money or monthly contributions to an infant, and when the child grows older, small sums they make from allowance or other small jobs.

Why open a child’s bank account at Cornerstone Bank?

Sometimes, the best gifts are not tangible but rather a shared experience. Opening your child or grandchild a bank account at Cornerstone Bank can be a fun activity for you and for them! It can provide an early teaching experience of how banks work, with the added lesson of supporting small, local businesses rather than a larger chain. Your child will have positive memories of visiting and interacting with the bank, along with the benefit of having a place to store and invest their funds.

Along with the experience of learning how to open a child’s bank account, Cornerstone Bank can provide a great resource for your family for years to come with the accounts we offer.

Online Banking

Because your child may not be capable of managing their funds for many years after opening their first bank account, an online banking feature will be incredibly helpful in managing their account for them.


One of the most important notes to make while researching how to open a child’s bank account is what happens to the money that’s in the account. Does it accrue interest? Are there fees? Cornerstone bank offers great interest rates to help grow your child’s funds with little maintenance.

Close to home

Cornerstone Bank is close to home for our clients in Kansas City. Having a local bank right down the street means the ability to stop by whenever it’s convenient for you and your child to continue their education and teach them about where their money is and how they can access or add to it.

Types of Accounts

Every client has different needs and desires for their child’s financial future. Cornerstone Bank offers a variety of options for how to open a child’s bank account.

High interest savings account

When researching how to open a child’s bank account, finding a high interest savings account that will accrue interest over time is one of the best options, especially if your child or grandchild is still an infant or toddler. A savings account still has transactional capabilities to provide continual learning experiences for the child, but without the need for everyday uses like writing checks or swiping an ATM card.

Personal Money Market account

If you’re still interested in opening a savings account for your child, but would like to have more transactional capabilities like using an ATM card, you may want to consider our personal money market account. See our Banking Rates page for more details.

High interest checking account

Another account you may want to consider is opening a high interest checking account, which begin collecting interest with a minimum balance of just $500 (to avoid a monthly service fee). Once the child turns 18, you’ll be able to remove yourself as an owner of the account and allow them more independence with their funds.


CDs are a better option if you are interested in gifting your child a set amount of money, subject to an interest rate over a set period of time. Our CDs range from 30 days up to 60 months featuring published rates as high as 1.26% APY*  Simply choose how long you’d like your money to collect interest, and come back to cash in later.

*1.26% Annual Percentage Yield for our 60 month CD. CDs require a minimum balance of $1,000.00 to open. Effective December 17,, 2018. Penalties may apply for an early withdrawal.

Section 529

Section 529 accounts are one of the most popular choices for saving for a child’s college education. While this does not offer the “transactional” aspects of a traditional checking or savings account, Section 529 accounts are a great way to save large amounts of money for college-related expenses. Read more about Cornerstone Bank’s Section 529 Account in Kansas City.

The Importance of Saving

As of December 2016, more than 313,000 children in 31 states and the District of Columbia have savings accounts. If your child is old enough to receive an allowance and begin making purchases, now is a great time to research how to open a child’s bank account, and to teach him or her how saving their money benefits them more so than the instant gratification of making a purchase.

By taking the first step and learning how to open a child’s bank account, you’re setting up your child for a learning experience that can only come from owning your own account and saving your own money.

Depending on the child’s age, there are a variety of things you can do to help instill good habits after opening their bank account. Activities that involve transactions or concepts of savings or bartering will help give your child a leg up on their understanding of how money works on a broader level. Learn more about money milestones, choices, and activities you can do with your child at Consumer Finance.


What you’ll need

Coming prepared with the proper documentation will help the process of learning how to open a child’s bank account be easy and smooth. We ask that you please provide:

  • The child’s social security number
  • Your social security number
  • A state issue ID, such as a driver’s license, or passport
  • All other personal details (name, address, contact information, date of birth, etc.)
  • An initial deposit (cash or checks)

How it works

One of the most important things to note when discussing how to open a child’s bank account is that the child is a minor and therefore legally cannot sign any contracts or documents. As the parent or legal guardian, be prepared to sign the necessary legal documents on their behalf.

Because of this regulation, it will also be necessary to list your name on the account. You’ll need to stay on the account until your child turns 18.

Being the primary or joint owner of the account gives you the ability to withdraw from and deposit to the account, as well as the ability to close the account altogether if necessary. You will also be able to monitor their activity when they get older and begin using the account independently.

Eden’s experience: Learning how to open a child’s bank account

Recently, our client and his family visited Cornerstone Bank and asked us about how to open a child’s bank account as a Hanukkah gift for their seven month old.

Adam is a business owner in Kansas City and trusted Cornerstone Bank to walk him through how to open a child’s bank account the right way, so Eden would be set up for success early on.

Adam and his wife decided that the best option for Eden would be to open a high interest savings account. We began the process by using all of the legal documentation the family provided, including Eden’s social security number and date of birth, as well as Adam’s driver’s license, to open the account.

Now that Eden has his “own” savings account, he’ll start earning interest on his money before he can even say “Thanks dad!”

Let’s take the leap together.

Cornerstone Bank will work hard for you and your family to make sure you’re getting the most out of your account and are on the right track to opening your child’s bank account. Our clients enjoy immediate accrual of interest, which means the sooner you come see us, the sooner your child will start earning.

People like people. Period.

Cornerstone Bank is here to serve our community by providing accessible, convenient bank accounts for children. We promise to uphold our values of human-based customer service, because frankly, people get things done in a way that automation simply can’t.

We will continue to provide you with better interest rates and no barriers to your earning potential. After all, we aim to help YOU gain from OUR years of experience.

Ready to take the next step?

If you’re still on the fence, reach out to our team and schedule a one-on-one meeting. We’ll help you determine the best steps for you and your child. Your money will work smarter, not harder, at Cornerstone Bank in Kansas City. And if you need help switching your bank account, pay us a visit and we’ll help you get prepared.


Contact Us

Are you interested in speaking to us about how to open a child’s bank account? Reach out to your local Cornerstone Bank today.