Visa credit cards may soon direct rewards into Trump Accounts: How it works

Visa announced on Wednesday (January 28) that US credit cardholders will soon be able to deposit rewards earned on everyday purchases directly into Trump Accounts, a new child-focused savings and investment program introduced under last year’s One Big Beautiful Bill Act.

Trump Accounts are designed to give every newborn between 2025 and 2028 a $1,000 government contribution, which is invested in US equity index funds until the child turns 18.

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Parents, relatives, employers, and other contributors can also add funds, up to $5,000 per year per child, with contributions from charities and local governments not counted toward this cap.

Visa said the move will allow families to “turn rewards earned on everyday purchases into savings for their children’s futures.”

US financial institutions will partner with Visa to enable the feature, making it easier for families to contribute to these accounts without additional out-of-pocket spending.

Trump Accounts aim to introduce children to long-term investing, with funds only accessible after the child reaches adulthood. Eligible uses include tuition, starting a business, or making a down payment on a home. The accounts are managed by private banks and brokerages, which invest in US equity index funds with low fees capped at 0.10% annually.

US President Donald Trump welcomed the announcement, highlighting the program as a step toward “giving every child real assets and a shot at financial freedom.”

Employers have also been encouraged to contribute to employees’ children’s accounts, and several major companies, including Uber, Intel, IBM, Nvidia, and Steak ’n Shake, have pledged participation.

Parents can register for Trump Accounts starting in 2026, though the accounts will officially open for contributions in July 2026. Babies born outside the 2025–2028 window will not receive the $1,000 government contribution, though families can still open accounts for older children.

Trump Accounts are modeled in part on state-level “baby bond” programs, but unlike those initiatives—which target children in poverty and are state-managed—Trump Accounts are available nationwide, invest in private equity funds, and are accessible to all income groups. Critics have raised concerns that the accounts provide limited assistance during early childhood and may favor wealthier families who can afford to contribute the maximum amount.