Exclusive: BNY becomes first major financial firm to double "Trump accounts" for employees' newborns
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Bank of New York's headquarters in lower Manhattan. Photo: Jeenah Moon/Bloomberg via Getty Images
Bank of New York Mellon is joining the Trump administration's new investment initiative for babies — and doubling the federal contribution for its U.S. employees' children.
Why it matters: BNY is the first major financial institution to publicly get behind the "Trump accounts," the investment vehicle established by the One Big Beautiful Bill Act.
What they're saying: "By matching the government's contribution, we're helping our employees give their children a head start toward a stronger financial future," BNY CEO Robin Vince said.
- The bank will match the government's $1,000 seed payment for eligible babies born between 2025 and 2028, giving employees' newborns $2,000 to start once accounts are opened and verified.
Catch up quick: Trump accounts, also known as 530A accounts or Invest America accounts, are tax-advantaged savings and investment accounts for kids.
- The Treasury will deposit $1,000 into a tax-advantaged investment account for eligible babies born between 2025 and 2028, in what amounts to a 401(k) from birth.
- Tech mogul Michael Dell pledged his own $6.25 billion to fund 25 million additional "Trump accounts" for kids.
By the numbers: BNY's match doesn't just double the starting amount — thanks to compounding returns, it could double the gains for the child, depending on market volatility and timing.
- 18 years ago, if $1,000 was put into the S&P 500, today it would be worth a little over $7,000.
- $2,000 would be worth a little over $14,000.
Friction point: Advocates say early exposure to markets will give children access to the benefits of compound interest.
- Critics warn the program pushes could magnify inequality, since higher-income workers and corporate employees are better positioned to make additional contributions or receive employer matches.
Between the lines: Corporate matches could quickly turn Trump accounts into a new workplace benefit, widening the gap between families tied to large employers and those relying solely on the government's $1,000.
What we're watching: Whether other banks, asset managers and Fortune 500 employers follow BNY and roll out their own matches.
- And how the administration responds to that kind of corporate support.
