What Documents Do I Need to Open a Bank Account for My Child?
Guide your child towards financial literacy. Understand the straightforward steps to establish their first bank account with confidence.
Opening a bank account for a child is a practical step in fostering early financial literacy and responsibility. This process introduces children to fundamental concepts of saving, budgeting, and the banking system, setting a foundation for future financial independence. This guide covers gathering required documentation, understanding different account types, and the account opening procedure.
Required Documents for the Child
To open a bank account for a child, specific identification documents for the minor are essential. A Social Security number (SSN) is a requirement, as it is crucial for tax reporting purposes, especially if the account earns interest. Banks also request a birth certificate to verify the child’s age and identity.
Some financial institutions may ask for the child’s photograph or proof of address. These documents ensure proper identification and help the bank comply with federal regulations.
Required Documents for the Parent or Guardian
The parent or legal guardian opening the account must provide specific documentation. A government-issued photo identification, such as a driver’s license or passport, is required to verify the adult’s identity. This is part of “Know Your Customer” (KYC) regulations designed to prevent financial crimes.
The parent or guardian must provide their Social Security number and proof of current address, such as a utility bill or bank statement. These documents establish the adult’s identity and their legal relationship to the child, which is necessary since minors generally cannot open accounts independently.
Choosing the Right Account Type
Selecting the appropriate account type is an important decision. Two common options for children are custodial accounts, such as Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts, and joint accounts. Custodial accounts are managed by an adult until the child reaches the age of majority, typically 18 or 21, when the assets become fully theirs. Joint accounts allow both the parent and child to access the funds, with the adult maintaining oversight.
Consider factors such as minimum balance requirements, potential monthly or annual fees, and interest rates offered. Some accounts may have low or no fees and balance minimums to encourage young savers. Also, assess features like online access for monitoring, mobile banking capabilities, and whether a debit card is available for the child, often with parental spending controls. Interest earned on these accounts is taxable income for the child, and amounts exceeding specific thresholds (e.g., $2,700 in 2025) may be subject to the “kiddie tax,” where earnings are taxed at the parent’s marginal rate.
The Account Opening Procedure
Once all necessary documents are gathered and the preferred account type is chosen, the account opening procedure can begin. Many banks require an in-person visit to a branch to open accounts for minors, especially for younger children. During this visit, the parent or guardian will present identification and information for both themselves and the child.
The process involves completing bank-specific application forms. An initial deposit is required to activate the account, with amounts varying by institution, often ranging from $25 to $100 or more. While some institutions offer online applications for certain child accounts, particularly for older teens, the presence of a parent or guardian is mandatory for account establishment. After all steps are completed, the bank will finalize the account setup, providing account details and any associated debit cards or online banking credentials.