Can Minors Open a Bank Account?

Minors can indeed have bank accounts, though the process differs from an adult opening an account independently. Establishing a bank account for a minor provides a practical way to learn about saving, managing finances, and understanding basic financial responsibility from an early age. This experience helps children develop essential money management skills that benefit them throughout their lives. It also offers a secure place to store funds, reducing the risk of loss compared to keeping cash.

Account Types for Minors

Minors typically access banking services through specific account structures: joint accounts or custodial accounts. Joint accounts involve both the minor and an adult, usually a parent or legal guardian, as co-owners. Both parties generally have access to funds and can make deposits and withdrawals. The adult co-owner often maintains oversight, with some banks allowing supervision or limits on the minor’s activity, such as setting withdrawal caps. This setup provides an opportunity for direct financial education under adult guidance.

Custodial accounts, governed by the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), are another common option. These accounts are legally owned by the minor, but managed by an adult custodian until the minor reaches a specified age, usually 18 or 21, depending on state law. UGMA accounts typically hold financial assets like cash, stocks, and bonds, while UTMA accounts can also include real estate and other tangible property. Funds in a custodial account are considered an irrevocable gift to the minor and must be used for their benefit, such as educational or general expenses.

Requirements for Opening a Minor Bank Account

Opening a bank account for a minor requires specific documentation and adult involvement. The minor needs to provide their name, birthdate, and Social Security number. For proof of age, a birth certificate is often required to establish the relationship between the minor and the accompanying adult.

The accompanying adult, typically a parent or legal guardian, must also provide identification and information. This includes a valid government-issued photo ID, such as a driver’s license or passport, and their Social Security number. Proof of address, like a utility bill or financial statement, is also commonly requested. Most banks require the adult to be physically present to open the account, though some may allow online applications for certain account types.

While savings accounts can often be opened for minors of any age with an adult co-owner, checking accounts and associated debit cards generally have age restrictions. Many banks offer checking accounts for teens as young as 13 years old, with a parent or guardian as a co-signer.

Managing and Accessing Minor Bank Accounts

Once a bank account for a minor is established, both the minor and the adult co-owner typically have access to funds. For joint accounts, parents can monitor spending habits and easily transfer money. Debit cards are commonly issued with minor accounts, allowing the minor to make purchases and withdraw cash. Many banks issue debit cards for teens aged 13 or older.

These accounts come with features like online banking and mobile app access, enabling minors to check balances and track transactions. Parents can set spending limits and receive alerts for account activity, helping to teach responsible spending. There are generally no overdraft fees on minor accounts, meaning children can only spend what is available.

When the minor reaches the age of majority, usually 18 or 21 depending on state law, the account typically transitions. For joint accounts, the minor can then take full ownership, or the account may convert to a standard adult account. Custodial accounts (UGMA/UTMA) legally transfer full control of the assets to the now-adult beneficiary at the age of termination. The former minor then has complete discretion over the funds.