The payments, part of the new domestic policy law, are for U.S. citizens born this year through 2028. The idea is that the money in the accounts will have many years to grow.

A child’s savings account almost always offers a tax advantage—and if you shop around, it could also earn a much higher APY than adult accounts.

As a new mom, planning for my daughter’s future is top of mind. Before opening a savings or brokerage account, I asked ...