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Bank of America announced Wednesday that it will contribute funds to proposed “Trump accounts” for eligible employees.
The bank said it would match the government’s $1,000 contribution newly created accounts for children born between January 1, 2025 and December 31, 2028 for 165,000 US employees.
In addition, the bank will allow its employees with children under 18 to make pre-tax contributions to Trump accounts through payroll deductions.
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Bank of America said it will match the federal government’s $1,000 contribution to Trump accounts for eligible U.S. employees. (Michael Nagle/Bloomberg via Getty Images/Getty Images)
“Our announcement to support and complement this new federal program for our teammates is one of many ways we continue to invest in our teammates and reinforce our commitment to being a great place to work.” Bank of America he said in a statement. “When teammates have the opportunity to build long-term financial security for themselves and their families, it strengthens our company and the communities we serve.”
The so-called Trump accounts were created under last year’s One Big Beautiful Bill as an initiative to provide newborns a government-funded savings program.
The accounts, which will officially launch on July 4, 2026, will be provided to all American children born between January 1, 2025 and December 31, 2028 and will be funded with $1,000 from the US Treasury.
An authorized adult, including a parent, guardian, adult sibling or grandparent, can set up their child’s account if they have a valid account. Social Security number. Although no contributions are required, up to $5,000 can be deposited into the accounts per year.
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A screenshot of the Trump account home page. (White House)
Parents can enroll their children by opting in when they file their tax return.
“We applaud the federal government for providing innovative solutions for employees and families to plan for their futures, and we welcome the opportunity to participate,” Bank of America said.
president donald trump he is expected to share more details about the accounts with Treasury Secretary Scott Bessent on Wednesday.
Funds in the account will be invested in broad U.S. stock index funds (the same types of low-cost funds used in many retirement accounts) and will increase in value along with the overall performance of the U.S. stock market.
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Bank of America joined the Trump account program by promising matching contributions for eligible workers. (Bonnie Cash/UPI/Bloomberg via Getty Images/Getty Images)
According to the Department of Finance The Office of Fiscal Analysis, a fully funded Trump account could be worth as much as $1.9 million at 28 years, with low-end returns approaching $600,000 over the same period.
The Treasury estimates that the savings account would grow by $3,000 to $13,800 over 18 years without contributions beyond the initial $1,000 deposit from the federal government.
Amanda Macias of FOX Business contributed to this report.
