Having money in savings is extremely important. No one can predict what the future will hold, and having savings will always be a good idea. If you know the value of saving money, you want to instil this concept in another person by opening up a savings account for them. This could come in especially handy in the financial future of a child.
Visit the bank where you currently have your savings account to open an account for someone else. This is a good idea for several reasons. You already have an established relationship with the bank. If you plan to make regular deposits into the savings account, you will save yourself from having to make trips to more than one bank.
Inform the teller that you would like to open up a savings account for a person other than yourself. You will need to provide the person's name, social security number and mailing address--as well as proof of ID such as driver's license or birth certificate. This will be easy to do if the individual is your child. If the person is someone else's child or someone else all together, make sure you get her social security number and a copy of her birth certificate or driver's license in order to open up the account. Depending on the bank that you visit, it may accept a photo copy of the birth certificate. If not, ask your friend to borrow her certificate or license in order to open the account.
Fill out the application the teller will give you in order to open the account and make an initial deposit. The deposit may range anywhere from 1 to 100 dollars, depending on the bank you visit. Make sure you read and understand all the terms and conditions on the account, especially as far as fees and minimum balances are concerned. You don't want to be surprised by any charges.
Protect the account from having money withdrawn. If you are setting up an account for a child, you may want to set it up with certain stipulations. In order to do this, you would have to set up a custodial account and request the restrictions that you want. The account would still have the other individuals name on it, but your name would be there as well. You could make it so no money could be withdrawn until the individual is 18 years old, for instance. Doing this could help reduce the risk of the child or the child's parents spending the savings money wastefully.
If you do not want to go through the process of getting a social security number or informing anyone of the account, simply open it in your name. Gift the individual the money when you see fit.
Tips and warnings
- If you do not want to go through the process of getting a social security number or informing anyone of the account, simply open it in your name. Gift the individual the money when you see fit.