Can Minors Have a Bank Account?

Minors, typically defined as individuals under the age of 18, can hold bank accounts. While direct access has historical limitations, various avenues exist today that allow young people to engage with banking services. These options are structured to provide financial education and management skills under appropriate adult oversight.

Types of Bank Accounts for Minors

Several account structures facilitate banking for individuals under the age of majority. Custodial accounts, often established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA), are common options. An adult, known as the custodian, manages the funds for the minor’s benefit until the minor reaches a specified age, typically 18 or 21 depending on state law. The minor has limited control over these funds until they gain full access at the age of majority.

Joint accounts offer another pathway, allowing a minor to be a co-owner with an adult, usually a parent or legal guardian. Both the minor and the adult typically have access to the account, though the adult often retains primary oversight and responsibility for transactions. This structure enables the adult to guide the minor through banking activities. Some financial institutions also offer accounts specifically designed for minors, often requiring an adult co-signer and featuring restrictions like lower daily withdrawal limits or limited debit card access.

Information and Documents Needed to Open an Account

Opening a bank account for a minor requires specific documentation for both the minor and the accompanying adult. For the minor, banks typically require their full legal name, date of birth, and Social Security Number. Proof of address, such as a utility bill or school enrollment document, may also be requested. These details are essential for identity verification and regulatory compliance.

The adult opening the account must also provide comprehensive identification. This typically includes their full name, date of birth, and Social Security Number. A government-issued photo identification, such as a driver’s license or passport, is required. Proof of the adult’s current residential address, usually a utility bill or bank statement, is necessary. Both the minor, if the bank requires their presence, and the adult will need to be present at the bank branch to sign the necessary application forms and agreements.

Account Management and Access for Minors

In custodial accounts, the appointed adult custodian maintains exclusive legal control over the funds and transactions until the minor reaches the age of majority. The custodian makes all decisions regarding deposits, withdrawals, and investments, ensuring the funds are used for the minor’s benefit. The minor typically cannot independently access or transact with the funds in a custodial account.

For joint accounts, both the minor and the adult co-owner generally have access to the funds, though the adult often retains ultimate responsibility. Deposits can be made through various methods, including cash, checks, or direct deposits from sources like allowances or part-time job earnings. Withdrawal limits for minors are common, often restricting daily ATM withdrawals or debit card spending to smaller amounts. Online and mobile banking access for minors is frequently restricted or requires adult supervision through shared login credentials or linked accounts.

What Happens When a Minor Turns 18

When a minor reaches the age of majority, typically 18 or 21 depending on state law, their bank account transitions. For custodial accounts established under UGMA or UTMA, the assets automatically transfer to the now-adult individual. The custodian’s legal responsibility for managing the funds ceases, and the account is typically converted into a standard individual account in the former minor’s name.

Joint accounts can continue in their existing form or be modified. The adult co-owner and the newly adult individual can choose to maintain the account as a joint ownership, or the adult may be removed from the account, leaving it solely in the former minor’s name. Banks typically require updated signatures and new account agreements to reflect the change in status and legal ownership.