For joint accounts, we treat all owners, who are referred to as “co-owners,” as joint tenants with right of survivorship (described below), unless:
- Applicable state laws require other treatment, or
- We agree with you in writing that the account is owned in some other way.
Regardless of how your account is owned, we don’t keep a separate record of each co-owner’s interest in the account. We act on instructions from any co-owner (or a co-owner’s authorized representative) without obtaining other co-owner’s consent, including withdrawing or transferring funds, making payments, or closing the account. Each co-owner has complete control over all of the funds in the account. We may pay out money from the account upon the request or direction of any co-owner (or a co-owner’s authorized representative), regardless of their contributions to the account, and whether any other co-owner is incapacitated or deceased, or whether the account includes a right of survivorship.
Uniform Transfers/Gifts to Minors Act account. An account established under a state’s Uniform Transfers/Gifts to Minors Act that is controlled by a custodian (an adult who holds the minor’s funds in the account for safekeeping). We may disclose account information to the minor or their authorized representative. When the minor reaches the age established by the UTMA/UGMA laws in your state, we may pay the funds in the account to the minor without waiting for instructions from the custodian.
Minor by account. One or more adults may open an account, as custodian (an adult who holds the minor’s funds in the account for safekeeping) in the name of a minor. The minor owns the funds in the account. The adult, as the custodian, has exclusive control of the account and the minor cannot make deposits, withdrawals or transact on the account. If there’s more than one adult as the custodian on the account, each may act independently. We’re not obligated to inquire about the use of the funds. When the minor reaches the age of majority, they still will not be able to make deposits, withdrawals or transact on the account except to close the account. If the adult as the custodian (or the last of the adults as the custodian to survive) dies before the minor reaches the age of majority, we may transfer the funds to a successor custodian according to the applicable Uniform Transfers/Gifts to Minors Act.
Wells Fargo Bank, N.A. Member FDIC.
QSR-09142025-6481075.1.1
LRC-0324
FAQs
High-yield savings accounts are generally the best option since they offer above-average APYs. No matter which option you choose, your child's funds will be insured for up to $250,000 per depositor through the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA).
Which bank is best for savings for kids? ›
Why we rate them:
| Provider | Account name | Interest rate (AER) |
|---|
| Coventry Building Society | Junior Cash ISA (2) | 4.95% |
| Nottingham Building Society | Junior ISA | 4.85% |
| Loughborough Building Society | Junior ISA | 4.80% |
| Skipton Building Society | Junior Cash ISA Issue 7 | 4.75% |
1 more row- General savings. Perhaps the easiest way to start saving for your child's future is by opening a general savings account. ...
- Certificate of deposit (CD) account. A certificate of deposit, or CD, is similar to a savings account, with a few slight differences. ...
- Custodial account. ...
- 529. ...
- Roth IRA. ...
- Health savings account (HSA)
A 529 Plan can be invested into ETFs or target date funds which can offer more growth opportunities compared to a lower interest-earning savings account. Unlike a savings account that is not exposed to risk, a 529 plan can lose money since it is tied to investment vehicles.
Should I open a savings account or 529 for my child? ›
Choosing a 529 savings plan over other types of savings vehicles. Investing in a 529 offers several advantages over other types of accounts, like taxable brokerage or even high-yield savings accounts. For one, you get several tax advantages, which can help you save on both the cost of education and your income taxes.
Do I have to pay taxes on my child savings account interest? ›
If your child's interest, dividends, and other unearned income total more than $2,500, it may be subject to a specific tax on the unearned income of certain children. See the Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income for more information.
Can I open a high interest savings account for my child? ›
Yes, you can open a savings account that pays a high yield. The key is that it needs to be an account that's open to minors as applicants.
ISA kids savings account a good idea? ›
Opening a savings account for a baby or a child can be a good way to begin teaching good money habits. Your child might already know about bank accounts from books or TV. But if they ask where money comes from or how to have their own, they might also be ready for a savings account.
Can I open a Roth IRA for my child? ›
A Roth IRA for a child needs to be started and managed by a parent or other adult as a custodial account. The child needs a Social Security or other tax identification number, plus earned income. The Roth IRA stays a custodial account until the child reaches the age of majority, which is 18 in most states.
How to invest $1000 for a child? ›
A custodial trust account, such as UGMA/UTMA, can be opened by a parent or relative for a child, allowing contributions to be invested in a variety of assets like stocks, bonds, or mutual funds. The custodian manages the funds until the child reaches legal age.
Still, financial experts suggest that most kids are ready to learn money concepts by age 9, which makes age 9 the ideal time to open a savings account (a checking account will come later when your child is ready for greater financial responsibility).
What is a trust fund for a child? ›
Child's trust refers to a trust fund created for kids, usually by family members, in order to have the assets managed until the children mature. These trust funds can be created to operate in a variety of ways.
How to open an investment account for a child? ›
Five steps to opening an investment account for your kid
- Choose the right broker. No matter which type of brokerage account you decide to open for your kids, you'll need to start by finding a broker that offers custodial accounts. ...
- Open the account. ...
- Fund the account. ...
- Help your kid decide what to invest in.
A good starting point when saving for your children is setting aside 3% to 5% of your net monthly income. Let's say your household income is $6,000 after taxes, this works out to $180 to $300 per month. It doesn't seem like a lot, but every little helps, and could sit neatly within your budget.
Do kids have to pay taxes on savings accounts? ›
Interest earnings for a children's savings account are subject to income tax if they exceed a certain amount. If your child's interest, dividends and other unearned income total more than $2,200 in one year, the unearned income for certain children might be hit with federal taxes.
Is it a good idea to open a savings account for a child? ›
Benefits of a kids' bank account
It helps your child learn the basics of money management. It builds solid savings habits. It shows them the value of compound interest over time. It makes them more likely to learn from and benefit from understanding investment goals.
Should I open a high yield savings account for my child? ›
High-yield savings accounts offer many benefits that will give your child a leg up when they enter adult life, so opening one now can be a smart move if you want to prepare your kids for later in life. Get started with a high-yield savings account for your child here.
Is a kids savings account a good idea? ›
Opening a savings account for a baby or a child can be a good way to begin teaching good money habits. Your child might already know about bank accounts from books or TV. But if they ask where money comes from or how to have their own, they might also be ready for a savings account.
