Starting a savings account for a god child sets them toward the right direction for later in life when they are applying for college. That extra money can help with tuition, books, their first car, any of life's exciting firsts. It can help manage money for a child who would not be able to do so themselves. Deciding on the right savings account to accomplish that, takes shopping around to the various banks. Consider opening a Custodian Savings Account, which is irrevocable and belongs solely to the minor.
Research custodial savings accounts at each bank. They are also referred to as Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) Custodian accounts. The minor would not be able to withdraw money from the account until he is 18 or 21 years old, depending on your state law. The custodian would also not be able to withdraw any funds since its purpose is for a child's savings.
Choose a bank establishment that offers UGMA and UTMA Custodial accounts. The bigger banks like Bank of America can save you time by allowing you to open one online. The minimum starting amount ranges from £325 to £1,300.
Gather personal information about the minor you are opening the account, such as date of birth and their Social Security number. If you do not have the minor's social security number, you won't be able to open the savings account online, but will have to go in person to a bank branch. The taxes are reported on the minor's Social Security number.
Watch your account grow.