The White House Council of Economic Advisers earlier this year estimated that $1,000 could grow to more than $5,800 over the course of 18 years, assuming a 10.3% rate of return.
Under the same scenario, $250 could grow to roughly $1,600, according to online calculators.
While it is not currently possible to set up a Trump account, the Treasury Department on Tuesday published a form that parents can use to establish them as part of the tax filing process.
It said more details about how the accounts would be administered would be available next year.
Parents are eligible to contribute up to $5,000 in funds to the accounts, a figure that will be adjusted for inflation. Employers, charitable organisations and others can also donate to the accounts, which are set to launch in July.
The child can access the money at age 18 at which point the account converts into a retirement account. While the money grows tax free, withdrawals are subject to taxes – and possibly a penalty if made before the age of 59 and a half.
