Can You Open a Bank Account as a Minor?

Opening a bank account can be a foundational step in a minor’s financial education, offering practical experience in managing money. While minors generally cannot enter into contracts independently, banks offer specific account structures that allow them to engage with financial services under appropriate supervision.

Understanding Account Options and Parental Involvement

Minors typically access banking services through accounts that involve a parent or legal guardian. A common option is a joint account, where the minor and an adult are co-owners. Both parties have access to the funds, though the adult often maintains a supervisory role, allowing for direct oversight.

Another type is a custodial account, such as those established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). In these accounts, the minor is the legal owner of the assets, but an adult, known as the custodian, manages the account until the minor reaches the age of majority. The custodian controls the investments and distributions, which must be used for the minor’s benefit.

Some financial institutions also offer minor-only accounts that require parental consent or a parental guarantee. These accounts may provide the minor with a debit card and online banking access, often with parental controls and monitoring features. Parental involvement ensures compliance with banking regulations, as minors typically cannot independently open accounts due to contractual limitations.

Documents Needed to Open an Account

Opening a bank account for a minor requires specific documentation from both the minor and the accompanying parent or legal guardian. The parent or guardian will generally need to provide a valid, government-issued photo identification, such as a driver’s license or passport, to verify their identity. Proof of address, such as a recent utility bill or financial statement, is also typically required for the adult. These documents are crucial for financial institutions to comply with federal regulations, including anti-money laundering (AML) and know your customer (KYC) requirements.

For the minor, identification documents are also necessary. This often includes a birth certificate or a Social Security card. Some banks may accept a student ID or other forms of identification. The minor’s Social Security number is also consistently required, particularly for any interest-bearing accounts, as earnings are reported to the Internal Revenue Service under the minor’s name.

Steps to Open the Account

For most minor accounts, a visit to a physical bank branch with the minor and the parent or legal guardian is often required. During this visit, bank representatives will guide the applicants through the process, which includes completing application forms. These forms collect essential information about both the minor and the adult co-owner or custodian.

Following the completion of the forms, the required identification and supporting documents will be submitted for verification. An initial deposit is typically needed to activate the new account. This opening deposit can range from a nominal amount, such as $25 or $50, depending on the bank and the account type. The funds for this initial deposit can often be transferred from an existing account, or provided via cash, check, or debit card.

Managing the Account and Transition to Adulthood

After a bank account for a minor is established, both the minor and the supervising adult can engage in various financial activities. Minors with access to the account can make deposits, such as cash from allowances or earnings, and withdrawals, usually within specified limits. Many minor accounts come with a debit card, allowing for purchases and ATM access, often with parental controls that limit spending or transaction types. Online and mobile banking features are frequently available, enabling balance checks, transaction monitoring, and sometimes even bill payments.

A significant transition occurs when the minor reaches the age of majority, which is typically 18 years old. At this point, the account’s legal status changes, and the minor becomes solely responsible for the account. For joint accounts, the parent’s name may be removed, converting it into an individual account for the now-adult. In the case of custodial accounts, the custodian is legally obligated to transfer full control and ownership of the assets to the former minor. This transfer usually involves updating account documentation.