How to Open a Bank Account Under 18

Opening a bank account for a minor provides a foundation for financial understanding and practical money management. It helps young individuals become familiar with banking services and develop responsible financial habits from an early age. While minors typically cannot open an account independently, options exist that involve an adult, such as a parent or legal guardian. Early engagement helps them learn about saving, spending, and budgeting, building a strong financial future.

Understanding Account Options

For individuals under 18, two primary types of bank accounts are commonly available: joint accounts and custodial accounts. Understanding their differences helps in selecting the most suitable option.

A joint bank account involves both the minor and an adult, such as a parent or legal guardian, as co-owners. Both parties have equal access to deposit, withdraw, and manage funds, allowing for direct supervision and shared responsibility. This structure provides an opportunity for the adult to guide the minor through transactions and monitor account activity, fostering practical money management skills. Many banks offer joint checking or savings accounts specifically designed for teens, often with parental oversight features.

Custodial accounts, commonly established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA), operate differently. An adult, known as the custodian, manages the account for the minor’s benefit until the minor reaches the age of majority, which varies by state (typically 18 to 21 years old). Assets placed in these accounts are considered an irrevocable gift to the minor. UTMA accounts generally allow a broader range of assets, including real estate, while UGMA accounts are typically limited to cash and financial investments like stocks and bonds.

Essential Information and Documents

Opening a bank account for a minor requires specific documentation and information from both the minor and the accompanying adult. Gathering these items beforehand streamlines the application process.

For the minor, identification documents include a birth certificate, a student ID, or a passport. A Social Security Number (SSN) is also required for tax identification purposes.

The adult opening the account must provide a government-issued photo identification, such as a driver’s license, state ID card, or passport. Proof of address, like a recent utility bill or lease agreement, is also needed. The adult’s Social Security Number is mandatory for the application. Banks generally require an initial deposit to fund the account, with minimum amounts varying by institution.

The Account Opening Process

The process of opening the account often requires an in-person visit to a bank branch for minor accounts, particularly for savings accounts, to ensure proper verification. While some banks may offer online options for certain checking accounts, direct interaction at a branch remains common.

During the branch visit, the adult and minor will present their identification and information to a bank representative. The bank will provide the necessary forms for account setup.

After completing and signing the forms, the initial deposit is made to fund the account. The bank will then arrange for a debit card to be issued for the minor, often with customizable spending limits, and provide information for online banking setup, allowing for digital access and monitoring.

Key Considerations for Choosing an Account

When choosing an account, evaluate potential fees, as these can reduce the account balance over time. Common fees include monthly maintenance fees, ATM fees for out-of-network transactions, and overdraft fees. Many banks offer accounts for minors with no monthly fees or low balance requirements, and some waive fees if specific conditions are met, such as maintaining a minimum balance.

Account features are important for how the minor can use and learn from the account. Access to online and mobile banking platforms allows for convenient monitoring of transactions and balances. Debit card options, often with pre-set spending limits, provide practical experience with electronic payments. Parental control features, such as spending alerts and transaction monitoring, offer adults the ability to oversee the minor’s financial activity.

Some financial institutions offer educational resources designed to promote financial literacy among young account holders. These resources can include online modules, games, or in-person programs that teach budgeting, saving, and responsible spending. Considering the bank’s accessibility, including local branches and a network of fee-free ATMs, can also simplify the banking experience for both the minor and the supervising adult.