Invest in your child's financial security with a UTMA custodial account

Jumpstart your child’s savings by opening a Uniform Transfer to Minors Act (UTMA) account, also known as a custodial account, in his or her name. You’ll maintain full control of the account until he or she becomes an adult.

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  • Perfect account for saving on behalf of a child
  • No contribution limits
  • Earnings are taxed at the child's rate - typically lower than the parents' rate
  • Available with savings, supplemental savings, checking or certificate accounts
  • Just $5 initial deposit required — and we will pay it for you!
  • Above-market average dividends21 paid monthly for accounts with average balances of $100 or more
  • No maximum balance
  • Funds are insured up to $250,000 by NCUA
Earn 1.80% APY on your savings!63

That's 22.5x the national bank average!71

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Custodial accounts 101

A custodial account is officially in the name of the minor. However, as the custodian, you will have complete control of the account. Once the minor reaches 18-21 years old (depending on state law), he or she will have the right to any remaining funds in the account after they have been released by the custodian6.

Before the minor becomes an adult, the custodian may spend funds in the account for educational purposes or any purpose that benefits the minor.

Note: The custodian is also required to be a member of Alliant Credit Union.

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Types of Custodial Accounts

You can include any of these savings products with a custodial accounts:

Are you looking for a Kids Savings Account instead?

An Alliant Kids Savings account is a joint savings account where the minor can have access to the account under the guidance of an adult. Uses of funds within a Kids Savings account are less restrictive than a custodial account so, your child or grandchild can learn how to save up for that toy or experience they’ve been wanting.

Learn more

Custodial Account FAQs

What is a UTMA custodial savings account?

Uniform Transfer to Minors Act (UTMA) accounts are taxable accounts that allow you to gift or transfer assets to a minor. Once the account is opened, transfers are irrevocable and become the assets of the minor.

Who’s eligible for a UTMA custodial savings account?

Any person eligible to become an Alliant member can open a custodial savings account for a minor. The account is maintained in the name of the minor. The custodian must be an Alliant member.

How much can I contribute to a custodial savings account?

There are no contribution limits.

What products and services are available with UTMA custodial accounts?

The following products are available with UTMA Custodial accounts:

  • Savings without a Savings ATM Card (required)
  • Supplemental Savings
  • Checking without Visa® debit card. Check imprint must include name of minor and name of custodian.
  • Share Certificates
  • Alliant online banking
  • Alliant Bill Pay
What are the tax advantages of a custodial savings account?

Earnings are reported under the minor child’s Social Security number. Consult with your tax advisor for more information on tax implications.

How can funds from a custodial savings account be used?

While the child is a minor, funds in a UTMA custodial savings account may be used for educational purposes, or for any purpose that benefits the minor. Once a minor reaches 18-21 years old (depending on state law), the custodian is required to distribute the funds.

Do I have to maintain a minimum balance to have a savings account or to earn interest?

The minimum balance to keep your savings account open is $5. To earn interest, you must maintain a daily average minimum balance of $100. Alliant interest is paid monthly.

What products and services are NOT available with UTMA custodial accounts?

The following products are NOT available with UTMA Custodial accounts:

  • Debit cards or Savings ATM cards
  • Credit cards
  • Loans, mortgages and home equities
  • IRAs 
Are my account funds insured to protect me from loss?

Alliant deposit accounts are federally insured up to $250,000 by the NCUA. To learn the details of funds coverage, visit the NCUA page on the Alliant website. 

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