Personal Finance

what's required to open Bank Account for baby or young kids?

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  • Dec 23rd, 2015 8:59 am
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[OP]
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Mar 29, 2015
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Wood Bridge

what's required to open Bank Account for baby or young kids?

I would like to open a bank account for the little one, infact I'm going there after work. What sort of documents is required? I was told by Service Canada I need a SIN number, which I got, though it was not a card any more its printed on paper. Anything else? I am assuming I would need to make a "joint" account since I will be putting in money every now and then, transferring funds, etc.. anything else? any hidden fees? is it taxable under my name?
Thanks
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Dec 17, 2008
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Probably need birth certificate as well.
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Sr. Member
Oct 11, 2010
980 posts
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Charlottetown
I recently did this for my 4 month old daughter.

I have an account with RBC and opened a Little leo's savers account for her. It is basically a joint account between her and I. I did this so I could have a place to put any money she received for birthday's etc down the road and i also direct deposit one of the child benefit checks we get each month in to the account. In addition to this account I have an RESP for her which I contribute to monthly. Once could argue that any money destined for the savings account would be better served in the RESP account.. but I don't think there's anything wrong with having a bank account for some savings outside of education/resp that she could take over when she is older.

When I opened the account they wanted both the SIN and a birth cirtificate. I only had the sin number printed on paper like you have. They opened the account anyway and asked me to bring in another form of identification such as birth certificate in good faith, but I never did and the account has been active and working fine.
Sr. Member
Nov 17, 2014
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Stronzo1 wrote: I is it taxable under my name?
yes, the income earned in your kid's account is taxable to u if u transfer your money into that account. However, if the funds are from other relatives (grandparents etc), the earned income isnt taxable to u.
[OP]
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Mar 29, 2015
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Wood Bridge
I'm just depositing cash, since my kid is only 0 years old, most of the gifts will come from Nonno's, Nonna's, Zio's and Zia's. since its going in a seperate account using my kids sin number it should not be taxable to me at the end of the year, no?
Thanks
Deal Addict
Sep 19, 2009
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Beefeater wrote: However, if the funds are from other relatives (grandparents etc), the earned income isnt taxable to u.
Interesting perspective. The bank will send you and CRA a T5 tax receipt anyway. Who do you believe should pay taxes on that amount?
[OP]
Deal Addict
Mar 29, 2015
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because I never got taxed on my interest earned in savings account until I was 18. I am putting it under my Kids name with their SIN number not mine, so its basically my kids money why should I have to pay tax on their savings? Its because my kid is 0 years old I have to make it a joint account, my kid cant even speak so you expect them to be able to manage an account on their own? I don't think so
Thanks
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Jul 15, 2009
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andrew4321 wrote: Interesting perspective. The bank will send you and CRA a T5 tax receipt anyway. Who do you believe should pay taxes on that amount?
I always file a tax return for the kid and include the T5 in the kid's return together with a note explaining the source of the funds.
[OP]
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Mar 29, 2015
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bubak wrote: I always file a tax return for the kid and include the T5 in the kid's return together with a note explaining the source of the funds.
Nice, then I will do this! thanks for the help
Thanks
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Apr 19, 2010
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jfall wrote: I recently did this for my 4 month old daughter.

I have an account with RBC and opened a Little leo's savers account for her. It is basically a joint account between her and I. I did this so I could have a place to put any money she received for birthday's etc down the road and i also direct deposit one of the child benefit checks we get each month in to the account. In addition to this account I have an RESP for her which I contribute to monthly. Once could argue that any money destined for the savings account would be better served in the RESP account.. but I don't think there's anything wrong with having a bank account for some savings outside of education/resp that she could take over when she is older.

When I opened the account they wanted both the SIN and a birth cirtificate. I only had the sin number printed on paper like you have. They opened the account anyway and asked me to bring in another form of identification such as birth certificate in good faith, but I never did and the account has been active and working fine.
I did the same, however, the money in that account doesn't get interest or anything at least in my case it doesn't.
What's the point of it really?
I eventually closed it and invested the money. I am willing to pay the cap gains until my son is old enough to receive it.
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Sep 25, 2015
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Newcastle, ON
Attribution rules apply here folks; you can't move your own money into your minor children's bank account and expect that money not to be taxed in your hands. This is the same as giving money to your spouse for investing: you can't. You either accept that income as your own on your statement, or (bad idea in this case) you can LOAN money to the spouse/minor at the prescribed rate (currently 1%). Source
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[OP]
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Mar 29, 2015
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I understand you can't move money from your own account, and I'm not trying to do that. My kid gets money from time to time as gifts for christmas, birthdays, etc. instead of putting the money in a shoe box, why not deposit it in the bank then when my kid is old enough to spend their own money, why not? plus they can get interest on it too.
Thanks
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Jan 27, 2004
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gwcphoto wrote: Attribution rules apply here folks; you can't move your own money into your minor children's bank account and expect that money not to be taxed in your hands. This is the same as giving money to your spouse for investing: you can't. You either accept that income as your own on your statement, or (bad idea in this case) you can LOAN money to the spouse/minor at the prescribed rate (currently 1%). Source


yeah.... we all know that. ;)
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Dec 11, 2005
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Stronzo1 wrote: I understand you can't move money from your own account, and I'm not trying to do that. My kid gets money from time to time as gifts for christmas, birthdays, etc. instead of putting the money in a shoe box, why not deposit it in the bank then when my kid is old enough to spend their own money, why not? plus they can get interest on it too.
There is nothing wrong with what you are doing.

You just need to understand that since she is a minor, any interest earned on that income is *attributable to you*, and you need to claim it, even if < $50 and no T5 is issued.

This is why it would be more advantageous to put the money in her RESP, as that has no taxation on interest.

Another thing you could do is open an account that got no interest at all, then it isn't a problem.
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Sep 25, 2015
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Newcastle, ON
Stronzo1 wrote: I understand you can't move money from your own account, and I'm not trying to do that. My kid gets money from time to time as gifts for christmas, birthdays, etc. instead of putting the money in a shoe box, why not deposit it in the bank then when my kid is old enough to spend their own money, why not? plus they can get interest on it too.
I see what you're saying; it's not your money, it's money given to your kids by others. In that case I don't know.
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Nov 4, 2015
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If it's not from you then it shouldn't be attributed back to you.
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Jul 15, 2009
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RichRFD wrote: If it's not from you then it shouldn't be attributed back to you.
True, but the CRA can assess it as attributed to you and then it's your responsibility to show that it's not from you. Keep good records. As long as you have proof, no problem.
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Nov 4, 2015
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bubak wrote: True, but the CRA can assess it as attributed to you and then it's your responsibility to show that it's not from you. Keep good records. As long as you have proof, no problem.
For sure. It's always better to be safer than sorry with the CRA.

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