Most banks will not open a checking account in a newborn's name alone

You cannot open a standard checking account for a newborn by themselves. Banks require the account holder to be at least 18 years old and able to sign contracts. What you can do instead is open a custodial account — a checking or savings account held in the child's name but controlled by a parent or guardian until the child reaches the age of majority (usually 18 or 21, depending on your state and the bank).

A custodial account lets you deposit money, write checks, and use a debit card on behalf of the child. The account belongs to the child legally, but you manage it. Some banks also offer youth accounts that let older children (typically 13 and up) have some control while you retain oversight.

The main reason to open an account early is to start building the child's financial history and Social Security record with the bank. This can make it easier for them to open their own account later or to get credit as a teenager.

Key Takeaways

  • You can open a custodial checking account in your newborn's name, but you will control it until they reach 18 or 21.
  • The bank will require your ID, the child's Social Security number, and proof of your relationship (birth certificate or custody documents).
  • Most major banks and credit unions offer custodial accounts, though fees, minimum balances, and features vary widely.
  • Some banks waive monthly fees for custodial accounts or offer them free until the child turns a certain age.

What documents you need to open a custodial account

Bring your government-issued ID (driver's license or passport) and the child's Social Security number. If you do not have the Social Security number yet, you can request one from the Social Security Administration before opening the account, or some banks will let you open the account and add the number later.

You will also need to prove your relationship to the child. A birth certificate is the standard document. If you are a guardian rather than a parent, bring custody papers or a court order showing your legal authority.

Some banks ask for a second form of ID or proof of address (utility bill, lease, or bank statement). Call the bank ahead of time to confirm what they need — requirements vary by institution.

Differences between custodial checking and savings accounts

A custodial checking account comes with a debit card and check-writing ability. You can withdraw money whenever you need it. Monthly fees are common, though many banks waive them for custodial accounts or charge only $5 to $10.

A custodial savings account earns interest on the balance but usually does not come with a debit card or checks. Withdrawals may be limited (some banks allow only a few per month without penalty). Interest rates are typically very low — often less than 0.01% — but the account teaches the child about saving.

Some families open both: a checking account for spending and a savings account for money meant to stay put. Others choose a checking account alone if they plan to manage the money actively.

Banks and credit unions that offer custodial accounts

Most major banks offer custodial accounts. Chase, Bank of America, Wells Fargo, and Citibank all have them, though terms differ. Credit unions often have lower fees or no monthly charge for custodial accounts. Check with your own bank first — if you already have an account there, opening a custodial account for your child may be simpler and faster.

Online banks like Ally, Charles Schwab, and Fidelity also offer custodial accounts, sometimes with no monthly fees. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person.

Call or visit the bank's website to compare. Look for monthly fees, minimum balance requirements, whether the account earns interest, and whether a debit card is included. Some banks charge nothing until the child turns 13 or 18, then switch to a regular account with standard fees.

How custodial accounts work when the child turns 18

When the child reaches the age of majority (18 in most states, 21 in a few), the account automatically converts to a regular account in their name. You lose control, and they gain full access. Some banks notify you in advance; others do not. Check your bank's policy.

If you want to transfer the money to a different account or bank before the conversion, you can do that while you still have control. Some parents move the money to a separate account they control, then give it to the child as a gift when they turn 18. Others leave it in place and let the child take over.

The child will need to update their contact information and may need to set up online banking access. If the account has a debit card, a new one will be issued in their name.

Tax and financial aid implications

Money in a custodial account is legally the child's asset, not yours. This matters for taxes and financial aid. If the account earns interest or dividends, you may owe tax on that income. The child's Social Security number is used for tax reporting, not yours.

For financial aid purposes (FAFSA), custodial accounts are counted as student assets. This can reduce the amount of aid the child is offered, because the government assumes the money will be used for education. The impact varies depending on how much is in the account and the family's overall financial situation.

If you are concerned about these effects, talk to a tax professional or financial advisor before opening the account. Some families choose to hold money in their own name instead, though this creates other complications if something happens to you.

Alternatives to custodial checking accounts

A 529 college savings plan is designed specifically for education expenses and has tax advantages. You control the money, and it does not count as heavily against financial aid. But you cannot withdraw it for non-education expenses without penalty.

A Uniform Transfers to Minors Act (UTMA) account or Uniform Gifts to Minors Act (UGMA) account is a type of custodial account that some brokerages offer. It can hold stocks, bonds, and mutual funds, not just cash. The rules are similar to a custodial checking account, but the money is invested rather than sitting in a bank.

You can also simply hold the money in your own name and give it to the child when they turn 18. This keeps it off their financial record and out of financial aid calculations, but it offers no tax advantage and provides no early financial history for the child.

Frequently Asked Questions

Do I need the child's Social Security number before I open the account?

Most banks require it, but some will let you open the account and add the number within 30 days. If your newborn does not have a Social Security number yet, you can request one from the Social Security Administration (it usually takes two to four weeks). Call the bank first to see if they will let you open the account without it.

Can I open a custodial account online?

Some banks and credit unions let you open custodial accounts online, but many require you to visit a branch in person with ID and the child's birth certificate. Online banks are more likely to allow online opening. Check your bank's website or call to ask.

What happens if I need to withdraw money from the custodial account?

You can withdraw money anytime — it is your right as the custodian. But legally, the money belongs to the child, and withdrawals should be for the child's benefit (food, clothing, education, medical care). Using custodial funds for your own expenses can create tax and legal problems.

Will opening a custodial account hurt the child's credit score?

No. A checking or savings account does not appear on a credit report and does not affect credit score. Credit scores are built only through borrowing (loans, credit cards) and payment history.

Can I open a custodial account at a different bank than my own?

Yes. You can open an account anywhere. Some parents choose a different bank to keep the child's money separate, or because another bank offers better terms for custodial accounts.