"Ally Bank is giving away $250 custodial online savings accounts to all babies born by midnight on Thursday, Dec. 31, 2020. If your newborn is eligible, sign up starts January 15, 2021."
By: Allan R. Kirby
Great news for children born on the last day of 2020!
That is not a misprint or scam, Ally bank is giving away $250 in a custodial online savings accounts to all babies born by midnight on Thursday, Dec. 31, 2020. The program will open up on January 15th, 2021 and you will have until July 31st, 2021 to upload your child's' birth certificate to receive the funds. Even if you have twins or triplets, each new years eve baby you welcomed into the family is eligible for their own custodial account and $250 deposit.
So why is Ally giving away this money? Ally states that "We wish we could extend this offer to every baby born in 2020 – they’re all so special. We created this moment to recognize those born on the very last day of this very difficult year, and to say thanks for helping us end 2020 on a joyful note" Additionally Ally highlights that each child who qualifies for the Ally Bank 12/31/20 cash bonus promotional offer will receive a bonus of $250. This is the maximum bonus amount any child can receive.
A Custodial account is often referred to as Uniform Gifts to Minors Act (UGMA) accounts or Uniform Transfers to Minors Act (UTMA) accounts.
The following details what is needed before you can claim $250 for your newborn baby from Ally:
Your baby’s social security number and birth certificate (You have until July 31st, 2021 to upload the birth certificate).
Visit Ally Bank’s program page beginning on Jan. 15, 2021, to enroll.
After enrolling, you’ll get a prompt to open a custodial Ally Online Savings Account (where Ally will deposit your baby’s money).
Remember to make sure you upload your child’s birth certificate by July 31, 2021, to receive the funds.
Note: Once enrollment is opened up you will be required to have your child's SSN to open the account up when enrollment starts.
What happens if you do not have your child’s birth certificate on January 15?
As stated by Ally, you can begin the process with just your child's Social Security Number however you’ll need to provide the birth certificate by 7/31/21.
When does the application process end?
Applications close on July 31, 2021. Be sure to enroll and submit your baby’s documentation by then to receive the $250.
So what is a Custodial account?
A custodial account is an account offered by banks that are opened by a parent or grandparent for the benefit of the child or grandchild. When you put money into a custodial account, you make a gift to the child's account. The adult (parent/guardian/grandparent) acts as the custodian (controller) of the account. Even though the child does not control the account the money belongs to them and can access the funds when they reach the age of majority (usually 18 for most states). So the child will eventually become the account owner and will be given complete control over the account and money held within the account.
Remember when you open a custodial account at Ally you can continue depositing money into your child’s custodial account throughout their childhood, so it's a great opportunity to build your child's savings until they become an adult.
Please visit Allys' website for further information.
This is a MySmallBank.com blog written by Allan Kirby, who writes and produces Personal Finance articles and videos.