Goldman Sachs, Morgan Stanley announce new employee perk

A new federal savings account for children launches July 4. Goldman Sachs and Morgan Stanley each committed to matching the government's $1,000 opening deposit for their employees' children before the program even opened.

Both banks confirmed the match on July 2, Reuters reported. More than 87 companies and organizations had made similar commitments by the end of that week.

What Goldman Sachs and Morgan Stanley are giving employees

The federal government deposits $1,000 into a Trump Account for each qualifying child. Goldman and Morgan Stanley each add another $1,000 for their employees' children. A child whose parent works at either firm starts with $2,000 in U.S. stock index funds when the program opens.

Children born in the U.S. between Jan. 1, 2025, and Dec. 31, 2028, qualify for the federal deposit. They must have a valid Social Security number. Treasury and IRS guidance indicate that the accounts cannot receive contributions before July 4, 2026.

"Starting early and staying invested for the long term is one of the most reliable ways American families build lasting financial security," Goldman CEO David Solomon said in a statement.

More Personal finance:

• Dave Ramsey says one daily habit costs you $5,000 a year
• Estate plans for unmarried couples: Protect your partner, your wishes
• Estate planning for solo agers: How to protect yourself

Morgan Stanley's internal memo described the contribution as reflecting the firm's belief in long-term saving and financial education, CNBC reported. Neither bank disclosed how many employees have children who qualify for the match.

Goldman already offers on-site child care and parental leave as part of its compensation package. The Trump Account match gives the firm another specific benefit to offer candidates with young families who are weighing their options.

What Trump Accounts are and how they work

Trump Accounts are investment accounts for children created under the One Big Beautiful Bill Act. The official website is TrumpAccounts.gov, going live July 4.

The federal government seeds each account with $1,000 for children born between 2025 and 2028. The money goes into broadly diversified U.S. stock index funds and grows without annual taxes on the gains.

Employers can add to the accounts, as Goldman and Morgan Stanley have done. Family members can contribute additional funds over time.

That is where the gap between income groups surfaces. Higher-income parents can keep adding money each year, building a much larger balance over 18 years. Families that can't contribute beyond the $1,000 government deposit won't realize these same gains.

President Donald Trump called the program a way to give children "ownership of America's future." Rep. Don Beyer (D-Va.) called it "a missed opportunity" that prioritizes Trump's branding over real policy. Both statements were made the same week.

Momo&solGetty Images

Other employers joined the Trump Accounts matching program

More than 87 organizations had committed to contributing by the end of July 2. Americans for Tax Reform is keeping a running list. Citi, JPMorgan Chase, Bank of America, Vanguard, BlackRock, Franklin Templeton, CrowdStrike, Intel, and Micron Technology all made similar commitments for their employees.

Michael and Susan Dell pledged $6.25 billion to put $250 into 25 million accounts for children born between 2016 and 2024, the group that falls outside the federal program's eligibility window.

Ray Dalio and Barbara Dalio made separate contributions for children in Connecticut. Micron committed $250 for children in specific counties across Idaho, New York, Virginia, California, Colorado, Minnesota, and Texas.

Brad Gerstner, CEO of Altimeter Capital, had been pushing the employer-matching idea for weeks before the launch. He told CNBC on July 2 that more announcements were still coming.

"The momentum we have around this is totally extraordinary," Gerstner said.

What this week's announcements signal for employees and investors

Goldman and Morgan Stanley employees with qualifying children start with $2,000 in an index fund. That money has up to 18 years to grow before the child reaches adulthood.

U.S. stock markets have historically averaged returns that turn a few thousand dollars at birth into a materially larger sum by college age. Whether that pattern holds is something no one can predict, but the starting balance is real, and it costs the employee nothing.

Large Wall Street banks compete hard for professionals with young families. A benefit attached to a child rather than a salary or title lands differently in that competition. Goldman has child care and parental leave. The Trump Account match adds a number with the child's name on it, starting at birth.

The speed of the July 2 announcements was the most notable part. More than 87 entities signed onto a program before it launched. Goldman Sachs, JPMorgan Chase, Vanguard, and BlackRock each committed publicly within days of each other.

Firms of that size move slowly on new savings vehicles, unless they expect the vehicle to stay. Whether Trump Accounts eventually become part of the standard American financial toolkit depends on public adoption and political continuity past this administration.

Both are open questions, although July 4 answers neither.

Related: Trump accounts hide Roth IRA strategy worth a fortune