Yes, for a kid with no income, you get the first $1100 of unearned income tax free. The next $1100 of unearned income is only taxed at 10%, and if you get into that second $1100 bracket you’ll have to file a (simple) return for the child. After that, the kiddie tax rules kick in for any further unearned income and it gets taxed at your marginal rate. In this case, it likely makes sense to report the interest annually if that will result in no taxes anyway.
You do this by filing a tax return the first year and making that election for the bonds, attaching a statement to the return saying this (the default treatment is to defer interest to maturity). You’d just file the first year return anyway and then don’t need to do the others if the income is below the reporting limit. Be aware that if you make this election, it effects all your I/EE bonds and lasts until you ask for (and presumably get) permission from the IRS to revert back to the deferral tax approach.
https://www.irs.gov/pub/irs-pdf/p550.pdf (see page 7-8)
You must use the same method for all Series EE, Series E, and Series I bonds you own. If you do not choose method 2 by reporting the increase in redemption value as interest each year, you must use method 1 [ie deferral is default].
Choice to report interest each year. The choice to report the accrued interest each year can be made either by your child or by you for your child. This choice is made by filing an in- come tax return that shows all the interest earned to date, and by stating on the return that your child chooses to report the interest each year. Either you or your child should keep a copy of this return.
Unless your child is otherwise required to file a tax return for any year after making this choice, your child does not have to file a return only to report the annual accrual of U.S. savings bond interest under this choice.
Also, even if you don’t do that, there are ways to cash out EE/I bonds tax free for paying for education or contributing to a 529 plan for your kid. These have income limits, but if you think you’ll be under those, you probably don’t have to worry about whichever way you do it.
https://www.bogleheads.org/wiki/I_savings_bonds#Tax-free_growth_for_Qualified_Education_Expenses