Can Someone Else Open a Bank Account for Me?

Opening a bank account for another individual is generally possible, but it requires specific legal arrangements or relationships. While direct account creation for someone else without their involvement is typically restricted due to “Know Your Customer” (KYC) regulations and anti-money laundering laws, various pathways exist to facilitate this process. These pathways ensure proper authorization and adherence to financial guidelines.

Understanding How Others Can Open Accounts

One common mechanism is a Power of Attorney (POA), a legal document that grants an appointed agent authority to act on behalf of another person, known as the principal. A financial POA can specifically authorize the agent to open, manage, and close bank accounts for the principal. The extent of this authority depends on the specific language within the POA document.

Joint accounts represent another way individuals can open an account together. In this setup, two or more people are co-owners, with each typically having full access to deposit, withdraw, and manage funds. Generally, all listed co-owners must be present and provide identification during the account opening process.

Custodial accounts, such as Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts, allow an adult to open and manage a savings or investment account for the benefit of a minor. The adult, known as the custodian, controls the assets until the minor reaches the age of majority. The custodian has a fiduciary duty to manage the funds for the minor’s benefit.

For individuals who cannot manage their own financial affairs, especially those receiving government benefits, a representative payee account can be established. The Social Security Administration (SSA) or other government agencies may appoint a representative payee to receive and manage benefits on behalf of a beneficiary. This payee opens a bank account where these specific funds are deposited, ensuring they are used for the beneficiary’s needs.

Essential Information and Documentation

To open a bank account for another person, various forms of identification are necessary for all parties involved. This typically includes a government-issued photo ID for the person whose name will be on the account, such as a driver’s license, state-issued ID card, or passport. The individual opening the account on their behalf, whether an agent, joint owner, or custodian, will also need to provide their own valid government-issued identification.

Beyond identification, personal information like Social Security Numbers (SSN) or Individual Taxpayer Identification Numbers (ITINs) are required for all account holders and authorized individuals. Current physical addresses and contact information, such as phone numbers, are also necessary.

Specific legal documentation must be presented depending on the method of account opening. For Power of Attorney arrangements, the original or a certified copy of the POA document is required, and banks will verify its validity. For custodial accounts, documents like the minor’s birth certificate or legal guardianship papers are needed. Court orders may be necessary for cases involving guardianship or conservatorship.

Most banks also require an initial deposit to activate a new account. This minimum opening deposit can range from a nominal amount, such as $25 to $100, although some accounts may have higher requirements.

Steps for Account Opening

Once all necessary information and documentation are gathered, the authorized individual typically needs to visit a bank branch in person to complete the account opening process. While some banks offer limited online options for joint accounts, in-person verification is often required for accounts opened by proxy, such as those involving a Power of Attorney or custodial arrangements.

At the bank, the authorized person will present all identification and legal documents to a bank representative. This allows the bank to verify identities and ensure that the legal authorization for opening the account is legitimate.

The bank will then provide its specific account opening forms. The authorized individual will complete these forms using the prepared personal information and details of the account holder. This includes confirming names, addresses, Social Security Numbers, and other relevant data.

After the forms are completed, the bank representative will conduct a verification process, which may involve cross-referencing information with databases or requesting additional details. Necessary signatures from the authorized individual will be obtained. Banks maintain the discretion to request further information or decline to open an account if any requirements are not met or if concerns arise regarding the validity of the documents presented.