Can I Deposit My Child’s Check in My Account?

When a check is made out to your child, parents often wonder if they can deposit it into their own bank account. Navigating this involves understanding endorsement requirements and bank policies. This article provides guidance on managing checks issued to minors.

Understanding Check Endorsement and Ownership

Determining how to deposit a check made out to a minor begins with understanding who the check is payable to. If the check is made out solely to the child, or to the child “and” a parent, the process will differ from a check made out to the child “or” a parent. A child’s status as a minor, typically under 18 years old, means they generally cannot legally endorse checks or enter into financial agreements independently.

To endorse a check for a minor, banks require a specific format. This often involves writing the child’s name on the back of the check, followed by “minor,” then the parent’s name and relationship, such as “parent” or “guardian.” The parent signs the check and may need to include their account number for deposit. Bank policies can vary regarding the exact endorsement needed and whether they permit depositing a minor’s check into a parent’s account.

Even if a parent deposits a check made out to a child into their own account, the funds legally belong to the child. This principle is important because the money is considered the child’s asset, and it should be used for their benefit.

Depositing the Check

Depositing the check involves several practical steps. Begin by endorsing the check on the back in the designated area, following your bank’s specific instructions for minor endorsements. This often includes the child’s name and “minor,” followed by your name, your relationship to the child (e.g., “parent” or “guardian”), and your signature. Some banks may also require “for deposit only” to be written.

You have several options for making the deposit. Mobile deposit through a banking app allows you to photograph the front and back of the endorsed check and submit it digitally. For ATM deposits, you would insert the endorsed check and follow the on-screen prompts to enter the amount. Depositing in person at a bank branch with a teller is also an option, and they can provide immediate assistance.

The bank may ask for identification from the parent or guardian making the deposit. In some cases, especially if the check is for a significant amount or if there’s a discrepancy, they might request documentation verifying the relationship to the child, such as a birth certificate. After the deposit, checks typically clear within one to five business days, though some funds may be available sooner depending on the bank’s policy and the check amount.

Exploring Other Options for Your Child’s Funds

Beyond depositing into a parent’s personal account, several other options exist for managing a child’s funds. Custodial accounts, established under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), are a common choice. These accounts are managed by an adult custodian, often a parent, until the child reaches the age of majority, which is typically 18 or 21 depending on the state. Funds in these accounts are owned by the minor and can be used for their benefit, with earnings generally taxed at the child’s lower tax rate up to certain thresholds.

Another possibility is opening a joint account with your child, although this option is usually available when the child is older, such as a teenager. These accounts provide shared access and can be a good tool for teaching financial responsibility. For younger children, some banks offer minor’s savings accounts, which are opened in the child’s name but require a parent or guardian as a co-signer or custodian.

For long-term savings, consider options like U.S. Savings Bonds or other investment vehicles. Savings Bonds are a secure way to save for a child’s future, accumulating interest over time. Each of these alternatives provides a structured way to manage money for a child, offering benefits like financial education and potential tax advantages, rather than commingling funds with a parent’s personal finances.