How Old Do You Have to Be to Get a Bank Account Without a Parent?

Establishing a bank account marks a significant step toward financial independence. Understanding the requirements for opening an account is important.

Minimum Age for Independent Accounts

Individuals must reach the age of majority to open a bank account independently. In most U.S. jurisdictions, this age is 18. The age of majority signifies when an individual is legally considered an adult and can enter into binding contracts. This legal standing is essential because opening a bank account involves a contractual agreement with the financial institution.

Some states have variations, with the age of majority being 19 in Alabama and Nebraska. Banks uphold this requirement to ensure that account holders have the legal ability to be responsible for their financial agreements. Without this contractual capacity, agreements could be voided, posing a risk to financial institutions.

Bank Accounts for Minors

For individuals who have not yet reached the age of majority, options are available to access banking services through parental or guardian involvement. Joint accounts are a common arrangement where both the minor and a parent or legal guardian are account holders. This structure allows the parent to supervise and control the account, often with features like spending limits and transaction monitoring. The parent or guardian maintains legal responsibility for the account until the minor reaches adulthood.

Another option is a custodial account, established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). In these accounts, the minor is the beneficial owner of the assets, but an adult, known as the custodian, manages the funds until the minor reaches a specified age, usually 18 or 21, depending on state law. Contributions to UGMA/UTMA accounts are considered irrevocable gifts to the minor. These accounts help minors learn financial literacy and save money.

What You Need to Open an Account

Opening any bank account, whether for an adult or jointly for a minor, requires specific documentation for identity verification. Financial institutions must comply with federal regulations, such as the USA Patriot Act and the Bank Secrecy Act, which mandate verifying customer identity. This process, known as a Customer Identification Program (CIP), helps prevent financial crimes.

Applicants must provide valid, government-issued photo identification, such as a driver’s license, state identification card, or passport. Proof of address is required, which can include a utility bill, lease agreement, or official government mail. A Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is necessary for tax reporting.

Many banks require an initial deposit to open an account, with amounts typically ranging from $25 to $100, though this can vary by institution and account type. For accounts opened for minors, the parent or legal guardian will need to provide their own identification and SSN, alongside the minor’s information.