Can a grandchild have a savings account?

Conventional savings account. A typical savings account at a bank is a straightforward way to create a fund for a grandchild. While savings accounts provide the smallest returns of your options, you can withdraw the money at any time and shift it into something else down the road.

What types of accounts can grandparents open for their grandchildren?

Custodial accounts are another type of account appropriate for grandparents to open for their grandchildren. These types of accounts are managed by an adult family member on behalf of a minor (someone under the age of 18 to 21, depending on state law). Control of the account passes on to the beneficiary upon reaching the age of majority.

How do I open a savings account for a grandchild?

The process of opening a savings account will vary slightly based on your bank and the type of account you open. (As mentioned above: To apply for a Discover Custodial account, you must do so over the phone. Call us at 1-866-515-5283.) But in general, these are the steps you’ll need to take to open a savings account for a grandchild: 1.