A practical guide to savings accounts, CDs, and financial gifts that grow with your grandchild
Why Grandparent-Led Savings Makes a Real Difference
Grandparents occupy a unique position in a child’s financial life. Parents are managing immediate household expenses, school costs, activities, and the daily demands of raising children. Grandparents, by contrast, are often in a more stable financial season — and a consistent contribution from a grandparent, even a modest one, can become the foundation of a grandchild’s financial future.
A savings account opened for a grandchild at birth — funded consistently over 18 years — can change the financial trajectory of that child’s early adulthood. A first car without a loan. College costs reduced. A security deposit and first apartment without debt. These are the practical outcomes of small, consistent deposits made over a long time.
FNB Coweta has helped Coweta families across multiple generations navigate these decisions since 1903. The accounts available today are simple to open, and the earlier they start, the more powerful they become.
The Math: What Small Monthly Contributions Become
The table below shows the principal value (contributions only, before interest) of consistent monthly deposits over time. Actual account balances will be higher once interest is factored in.
| Monthly Deposit | 5 Years | 10 Years | 18 Years | 25 Years |
| $25 | $1,500 | $3,000 | $5,400 | $7,500 |
| $50 | $3,000 | $6,000 | $10,800 | $15,000 |
| $100 | $6,000 | $12,000 | $21,600 | $30,000 |
| $250 | $15,000 | $30,000 | $54,000 | $75,000 |
Even $50 per month — less than most families spend on a single restaurant dinner — becomes $6,000 in principal over ten years. Funded from birth to age 18, that’s $5,400 in principal from $25 per month, or $21,600 from $100 per month. These numbers grow further with interest accrual.
Opening a Savings Account for Your Grandchild at FNB Coweta
FNB Coweta offers savings accounts for minor children with a grandparent (or parent) as joint owner on the account. The structure is simple and it’s designed around the child: the minor is the primary owner of the account, and the grandparent is a joint owner who can manage the account, make deposits, and guide the child’s saving along the way.
Because the minor is the primary owner, the child is also the tax-responsible party for any interest the account earns — which for most children means little to no tax liability on modest interest earnings. The account belongs to the grandchild from day one; you’re simply the adult alongside them.
What you’ll need to open the account: your government-issued ID and your Social Security card, along with the minor’s birth certificate and Social Security card. The minimum to open a Passbook Savings account at FNB Coweta is $250. If you want to start smaller, speak with one of our new account representatives about options.
Visit us at 106 South Broadway in downtown Coweta, call 918-486-6561, or contact us online to ask about opening a savings account for your grandchild.
Teaching Financial Habits Alongside the Account
An account alone builds a balance. An account paired with intentional conversations builds a habit.
Consider bringing your grandchild to the bank with you when you make deposits. Let them see the transaction. Explain what interest is and show them the balance growing on the statement. For younger children, the concrete experience of “the bank keeps my money safe and pays me for saving it” is a foundational money lesson most adults never received.
As they get older, involve them in the decisions. Ask whether they’d rather keep building the savings account or set a goal for part of it. Talk about what the money is for. The grandchildren who arrive at 18 with both a balance and an understanding of how it got there are the ones the money actually helps.
Frequently Asked Questions
What do I need to open a savings account for my grandchild?
You’ll need your government-issued ID and your Social Security card, along with the child’s birth certificate and the child’s Social Security card. FNB Coweta staff will walk you through the paperwork. The minimum opening deposit for a Passbook Savings account is $250.
Can multiple family members contribute to the same account?
Yes — once the account is open, any family member can deposit funds into it. Grandparents, aunts, uncles, and parents can all contribute. The account is held in the child’s name with you as joint owner, but there’s no restriction on who makes deposits.
What happens to the account when my grandchild turns 18?
The account belongs to your grandchild from the day it’s opened — they are the primary owner. At 18, the grandparent can remove themselves from the account if desired, leaving the young adult with full independent control. This is why conversations about what the money is for — college, a car, a first apartment, a business — matter in the years leading up to that transition.
Can I open a savings account for a newborn?
Yes, immediately after birth. You’ll need the baby’s Social Security card and birth certificate — the Social Security number is typically assigned within a few weeks of birth. Some grandparents open the account as soon as the documents arrive and begin monthly deposits right away.
Is there a limit on how much I can gift to a grandchild’s account annually?
The federal annual gift tax exclusion allows you to give up to $19,000 per person per year (2026 limit) without triggering gift tax reporting requirements. For married grandparents, that’s $38,000 per grandchild per year. Deposits into the account count toward this limit. For larger one-time gifts, consult a tax advisor about the most efficient structure.
FNB Coweta | fnbcoweta.com | Member FDIC | Equal Housing Lender
REGULATORY DISCLOSURES
Member FDIC | Equal Housing Lender
FDIC INSURANCE: Deposit accounts at FNB Coweta are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable coverage limits per depositor, per account ownership category.
DEPOSIT ACCOUNT RATES & FEES: Savings account and money market account interest rates are variable and subject to change without notice after the account is opened. Fees, if applicable, may reduce earnings. Contact FNB Coweta for current rates and terms.
GIFT TAX & CUSTODIAL ACCOUNTS: The annual federal gift tax exclusion for 2026 is $19,000 per person (adjusted periodically by the IRS).
GENERAL DISCLAIMER: This article is for general informational and educational purposes only and does not constitute financial, investment, tax, or legal advice. FNB Coweta is not a registered investment advisor. Individual circumstances vary. Consult qualified professionals before making financial decisions. Information is subject to change.