Trump Accounts for kids; are they available in Delaware?

President Donald Trump touted his Trump Accounts for kids platform during his State of the Union address Tuesday, Feb. 24, months before the savings account program goes live this summer.

Roughly 63% of parents open bank accounts for the newborns and young children according to The Financial Brand, showing that in general, opening a bank accounts for your child is a good idea.

But what, exactly, are Trump Accounts for kids, and does it make sense for you to open one for your child? Here’s everything you need to know.

Trump Account for kids explained

The IRS explained in a memo Trump Accounts will be available for any children under 18, with $1,000 seed money available for newborns and very young children.

That account will be seeded with federal government funds.

“A Trump account is a type of traditional individual retirement account that is established for the exclusive benefit of an eligible individual and that is designated at its establishment as a Trump account,” read the IRS’ Trump Accounts memo. “Upon an election under the pilot program, $1,000 is paid by the Secretary to the Trump account of an eligible child.

“An eligible child means a qualifying child who is born after December 31, 2024 and before January 1, 2029, who is a U.S. citizen, and for whom no prior pilot program election has been made.”

The Trump Accounts website confirms parents do not need to make a contribution, but can deposit up to $5,000 a year into the interest-bearing account.

Treasury Secretary Scott Bessent said in comments published Jan. 28 a single $1,000 deposit into a Trump Account at birth should grow to an estimated $500,000 by the age of retirement.

When will Trump Accounts for kids lunch, and can I apply in Delaware?

Trump Accounts for kids will go live on Monday, July 5, and parents in Delaware are allowed to apply for the nationwide offering when it opens.

Until then, you can visit the Trump Accounts website to add your name to the email list to get an update when the service goes live.

The IRS and U.S. Department of the Treasury released Trump Accounts guidance you can read before opening an account.

Problems with Trump Accounts for kids

While opening a Trump Account for your child may seem a good thing, TIME uncovered a few problems with President Donald Trump’s namesake account service.

“The program may be open to every child, but its benefits will flow overwhelmingly to families with the means to contribute thousands of dollars a year. What could have been a leveling tool instead risks becoming a widening wedge between the haves and the have-nots,” read a portion of TIME’s take. “For a family living paycheck-to-paycheck that is unable to add anything beyond the government’s $1,000 seed deposit, the balance reaches just $5,839 by age 18. “

The Joint Center for Political and Economic Studies echoed much of that sentiment, and said Trump Accounts for kids will have the opposite effect from its stated goals.

Damon C. Williams is a Philadelphia-based journalist reporting on trending topics across the Mid-Atlantic Region.