At What Age Can a Child Open a Bank Account?

Opening a bank account for a child fosters financial literacy and teaches responsible money management. It provides a practical way for young individuals to understand saving, spending, and the banking system. While children can indeed have bank accounts, specific regulations and requirements govern how these accounts are established and managed, primarily due to legal frameworks concerning contracts with minors.

Minimum Age and Adult Sponsorship

Individuals must be at least 18 to open a bank account independently, as minors cannot enter contracts. For children under this age, an adult, usually a parent or legal guardian, must be involved in establishing the account. Many financial institutions allow savings accounts to be opened for a minor of any age, provided an adult co-signs or acts as a custodian. For checking accounts, which often include debit card access, banks commonly require the minor to be at least 13 years old to be a joint account holder with an adult. Adult involvement ensures legal responsibility and oversight.

Types of Accounts for Young Savers

Bank accounts for minors commonly fall into two main structures: joint accounts, where both the child and an adult are co-owners with the adult usually maintaining primary legal responsibility and control, and custodial accounts. This arrangement allows the child to participate in banking activities while the adult provides guidance and supervision. Custodial accounts, such as Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts, are managed by an adult custodian for the child’s benefit. The assets within these accounts legally belong to the minor, but the custodian maintains exclusive control over the funds until the child reaches a specified age, which varies by state, typically between 18 and 21, and in some cases up to 25. Within these account types, basic savings accounts are widely available, and some institutions offer limited checking accounts with controlled debit card usage to help older children learn about spending.

What You Need to Open an Account

To open a bank account for a minor, both the adult co-owner or custodian and the child will need to provide specific documentation. Adults need government-issued photo identification (e.g., driver’s license, passport), their Social Security or Taxpayer Identification Number, and proof of address like a utility bill. Children need a birth certificate to verify age and relationship to the adult, and their Social Security number. Some banks may request a secondary form of identification for the child, such as a student ID. An initial deposit is necessary to activate the account.

How Minor Accounts Operate

Once established, bank accounts for minors operate with varying degrees of adult oversight, depending on the account type.

In joint accounts, the adult co-owner typically has full access and the ability to monitor all transactions, often receiving alerts for account activity. The child, if issued a debit card, may have spending and withdrawal limits imposed by the bank or the adult. This structure allows for supervised financial practice.

For custodial accounts, the adult custodian maintains complete control over the funds until the minor reaches the age of majority in their state. The minor cannot independently access or transact on the account during this period. Funds in these accounts, though belonging to the minor, are managed by the custodian for the minor’s benefit. Earnings on custodial accounts are generally taxable to the minor.

Upon reaching the age of majority, or the specific age designated for custodial account transfer, the account typically transitions to an individual account under the now-adult’s sole control.