New Treasury projections show that the "Trump accounts" offered to American children could grow into a seven-figure nest egg by adulthood, if maximized and left to compound.
The new savings program, tucked into the One Big Beautiful Bill Act and signed into law by President Donald Trump on July 4, offers children an initial one-time $1,000 government investment at birth.
Parents and relatives can contribute up to $5,000 annually to a child’s account until the child turns 18, with the cap potentially adjusted for inflation after 2027. If the maximum contribution is made each year on the child’s birthday through age 17, the account could grow to between $191,500 and $676,400, depending on investment performance.
The financial head start for newborns could grow to as much as $1.9 million by the age of 28 if fully funded and left untouched, according to the Treasury Office of Tax Analysis. Even at the lower end of projected returns, the savings account could still yield nearly $600,000 over the same period.
The tiny hands of a 2-month-old baby girl in her mother's hand while asleep. (Tim Clayton/Corbis via Getty Images / Getty Images)
Even without additional contributions beyond the federal government’s initial $1,000 deposit, the Treasury estimates the account could grow to between $3,000 and $13,800 over 18 years.
Families can open an account and receive a $1,000 government investment for each child born between Jan. 1, 2025 and Dec. 31, 2028.
A Social Security number is required to open the account and funds cannot be withdrawn until the child reaches the age of 18.