Can My Parents Open a Bank Account for Me?

Parents can generally open a bank account for their child, providing a valuable tool for teaching financial responsibility and saving money. The specific process and the types of accounts available often vary based on the child’s age and the policies of individual financial institutions.

Types of Accounts for Minors

Two primary types of accounts are commonly available for minors: custodial accounts, often established under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), and joint accounts with a parent. Custodial accounts designate the minor as the legal owner of the assets, though a custodian, usually a parent, manages the account until the child reaches a specific age, typically 18 or 21 depending on state regulations. The minor gains full control of the account upon reaching the age of majority.

In contrast, a joint account lists both the parent and the minor as account holders, granting both parties access to the funds and transaction history. This arrangement allows for direct parental oversight and the ability to monitor or limit the child’s spending activities. While custodial accounts legally belong to the minor from the outset, joint accounts provide shared control and immediate access for both the adult and the child. Both account types differ significantly in terms of legal ownership and the timing of the minor’s independent access.

Information and Documents for Account Opening

Before visiting a financial institution, parents will need to gather specific information and documents for both themselves and the minor. For the parent(s), a valid government-issued photo identification, such as a driver’s license or passport, is typically required. Parents will also need to provide their Social Security Number (SSN) or Taxpayer Identification Number (TIN) and proof of address, such as a recent utility bill.

For the minor, a Social Security Number (SSN) or TIN is universally required for account opening. Depending on the bank and account type, a birth certificate or a non-photo identification for the minor may also be necessary. This information is required for financial institutions to comply with federal regulations and verify identity.

Opening the Account

With all necessary information and documents prepared, the process of opening the account at a financial institution can begin. This often involves visiting a bank branch to speak with a representative, though some institutions may offer online account opening for certain types of minor accounts. The bank representative will guide the parent through the application process, which includes completing various forms with the gathered information.

Parents will then sign the account agreements and any required paperwork, with the minor potentially signing as well, depending on their age and the account structure. An initial deposit is typically required to fund the new account. After the account is established, the bank will provide account numbers, information on setting up online banking access, and details regarding statements and any associated debit cards.