Bank of America to Fund Proposed “Trump Accounts” for Employees

Bank of America announced on Wednesday its plans to support the proposed “Trump Accounts” designed for eligible employees. Under this initiative, the bank will match the federal government’s $1,000 contribution to accounts that are set to be opened for children born between January 1, 2025, and December 31, 2028. This offer extends to all 165,000 U.S. employees.

Moreover, the bank is allowing its staff to make pre-tax contributions to these accounts for children under 18 through payroll deductions, which could be a nice perk, I suppose. It’s a good way to encourage savings.

The so-called Trump Account was established last year under the One Big Beautiful Bill Act, aiming to create a government-backed savings program for newborns. The official launch date for these accounts is set for July 4, 2026, and they will provide a $1,000 funding boost from the U.S. Treasury to every child born in that timeframe.

An authorized adult, like a parent or guardian, can start an account if the child has a valid Social Security number. While contributions aren’t mandatory, individuals can add up to $5,000 annually if they wish.

Bank of America emphasized their support for this federal program, stating, “When our teammates have the opportunity to build long-term financial security for themselves and their families, it strengthens our company and the communities we serve.” It seems like a pretty thoughtful move on their part.

It’s also worth noting that parents can enroll their children in these accounts when they file their tax returns, making it relatively easy for families to take advantage of this program.

The funds will go into a broad-based U.S. stock index fund, which generally grows in line with the overall performance of the market. It’s interesting, isn’t it? If everything goes according to plan, this account could be worth up to $1.9 million by the time the child turns 28, which, honestly, sounds quite promising. Yet, of course, it’s based on some optimistic assumptions.

The Treasury Department also suggests that a typical savings account, even without any additional contributions, could grow from $3,000 to about $13,800 over 18 years, just from that initial $1,000 deposit. That’s a decent growth, I think.