How to Create a Bank Account for Someone Under 18

Opening a bank account for a minor introduces them to financial responsibility early, providing a structured way to manage money. These accounts help young individuals learn about saving, spending, budgeting under adult guidance. Since federal banking regulations prevent individuals under 18 from independently entering into contracts, an adult, typically a parent or legal guardian, must be involved. This involvement ensures legal compliance and provides oversight for the minor’s financial activities. Starting this financial journey early can build a foundation for sound money management habits that benefit them in adulthood.

Understanding Account Options

When considering a bank account for a minor, two common structures are available: a joint account or a custodial account. A joint account lists both the minor and an adult, usually a parent or guardian, as co-owners. Both parties have access to the funds and can make deposits and withdrawals, though many financial institutions implement controls, such as requiring an adult’s signature for certain transactions or limiting minor access. This setup allows for direct, shared management of the funds.

A custodial account, often established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). The adult acts as a custodian, managing assets on behalf of the minor until they reach the age of majority, typically 18 or 21, depending on the state’s specific adoption of the act. The funds legally belong to the minor upon deposit, but the custodian maintains control over the account and its investments. The minor gains full control of the assets once they reach the specified age of majority.

Gathering Required Information and Documents

To open a bank account for a minor, specific documentation is required for both the minor and the accompanying adult. For the minor, financial institutions require their full legal name, date of birth, and Social Security number. A birth certificate or a valid passport is needed to verify the minor’s identity and age.

The adult (parent or legal guardian) also needs to provide identification. This includes their full legal name, date of birth, and Social Security number. A government-issued photo identification, such as a driver’s license or passport, is mandatory for identity verification. Proof of address, such as a recent utility bill or bank statement, is requested to comply with federal regulations.

Choosing a Financial Institution and Account Features

Before opening an account, evaluate different financial institutions and their specific account features. Consider whether an online-only bank or a traditional brick-and-mortar bank best suits your needs, weighing factors like local branch access, customer service availability, and digital banking capabilities. Researching a bank’s reputation and customer satisfaction ratings informs this decision.

When evaluating account features, prioritize those that support financial education and responsible money management. Look for accounts with low or no monthly maintenance fees and manageable minimum balance requirements. A debit card for the minor, often with customizable spending limits or parental controls, can be a valuable learning tool. Online and mobile banking platforms, along with integrated financial education tools, can enhance the learning experience. Compare interest rates on savings components to maximize potential earnings.

The Account Opening Process

Once documents are gathered and a financial institution selected, the account opening process begins. If choosing an online bank, navigate to their website’s account opening section. This involves completing an online application form, securely uploading digital copies of required identification and verification documents, and providing electronic signatures. Many online banks streamline this process for completion from a computer or mobile device.

For those preferring an in-person experience, scheduling an appointment at a local branch is advisable for assistance. At the branch, present all physical documents for verification and complete necessary paperwork with a bank representative. The representative guides you through forms, ensuring accurate completion and explaining account terms. After submission, the bank reviews the application. Upon approval, you will receive confirmation of the account opening, along with details for accessing online banking and debit card issuance.