When it comes to your child’s first bank account, there are specific criteria you need to meet on the application. Anything that can help them to save from an early age will put them in a better spot later in life. Before you open a bank account for your child, it helps to understand the types of accounts available and what you’ll need to get started.
The Different Types of Child Bank Accounts
529 Plans – 529 plans help you to save for your child’s college education. Any withdrawals are not taxable and can only be used towards higher education. You get a better rate of return, and with no minimum balance required to open, anyone in your family can contribute.
Joint Checking Account – With a joint account, the parent as well as the child named on the account both have access. This is used by many parents who later take their name off the account once the child is old enough. It gives parents the ability to track spending which can help teach the child how to look after their money.
Custodial Bank Account – A custodial account works in a similar way to the joint account only the adult can’t make withdrawals. They are still able to see how the child spends their money, but at the age of 18, the account is transferred into the child’s name and usually becomes a regular account.
Interest Accounts – These saving accounts allow the child to accumulate interest and many of them do not take a fee.
What Do I Need?
When opening up an account, you need a few things — first, your child’s birth certificate, your driver’s license, and security card number. Then, you need your child’s social security number. The latter can be tricky, not everyone has it to hand, and many times, the parents own social security card has gone missing.
Social Security Card Replacement
Usually, you will find there is a box to tick for your child’s social security number when registering their birth at the hospital. However, details can be lost.
Waiting in line for a social security card form can be frustrating. Also, when you fill out the form yourself, mistakes are more common. At online-application.org social security card replacement is easy. They make every step simple which reduces the possibility of mistakes. They look at your personal circumstances and tell you what documents you need to support your application. With their help, you can have the card back within a couple of weeks. This means you can open your child’s account in no time.
In Conclusion
Since banks are not so lenient when it comes to sensitive information, you need to make sure you have everything they ask for to open a child’s bank account. Once you have all the right identification for you and your child, you can start saving for their future.
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