Yes, 10-year-olds can have a bank account, but the account must be opened and managed by a parent or guardian
A 10-year-old cannot walk into a bank alone and open an account. Banks require the account holder to be at least 18 years old to sign contracts independently. What a 10-year-old can do is be the named owner of an account that a parent or guardian opens and controls on their behalf. The parent's name appears on the account alongside the child's, and the parent retains full legal authority over the money until the child reaches the age of majority—usually 18, though some states set it at 19 or 21.
The account itself works like any other checking or savings account: the child can deposit money, withdraw it (with parental permission), and watch their balance grow. Many banks offer accounts specifically designed for children this age, with features like no monthly fees, low or zero minimum balances, and parental controls that let you set spending limits or require your approval for certain transactions.
Key Takeaways
- A parent or guardian must open the account and remain a co-owner until the child turns 18 or reaches the age of majority in your state.
- Most banks offer youth or teen accounts with no monthly fees and features designed to teach money management without risk.
- The child can use a debit card linked to the account, and you can set controls to limit spending or require approval for purchases.
- Money in the account is legally the child's, but the parent controls access and can withdraw funds if needed.
- When the child turns 18, the account can transition to a standard adult account, and the parent's name can be removed if both parties agree.
How a joint account with a child actually works
When you open a joint account for your 10-year-old, the bank creates one account with two names on it. You are the primary account holder, and your child is listed as a co-owner or authorized user, depending on the bank's terminology. Both names appear on the debit card and statements, though typically only one card is issued—to you, the parent.
You control the account legally and financially. You can deposit money, withdraw money, and close the account without the child's permission. Your child cannot do any of these things without your involvement. If the bank offers a debit card for the child, you usually set the daily spending limit, and some banks let you require your approval before each transaction. The money in the account belongs to the child in the sense that it is their money to use, but you have the power to manage it.
This arrangement protects both the child and you. The child learns to handle money and see how deposits and withdrawals work, while you maintain oversight and can step in if something goes wrong. If the child loses the debit card or it is stolen, you can cancel it immediately and replace it.
Types of accounts banks offer for children
Most major banks—including Chase, Bank of America, Wells Fargo, and regional banks—offer accounts designed for children under 18. These accounts typically have no monthly maintenance fees, no minimum balance requirement, and no overdraft fees. Some banks call them "youth accounts," "teen accounts," or "junior accounts." The features vary by bank, but the core idea is the same: a low-cost way for children to learn banking without penalties.
Some accounts come with a debit card for the child; others do not. If a debit card is included, you can usually set a daily spending limit—often between $25 and $500, depending on the bank. A few banks let you turn on transaction alerts so you receive a text or email every time the card is used. Others allow you to require your approval before the card can be used at all, which means your child cannot make a purchase without your say-so.
Credit unions often offer similar accounts and sometimes with even lower fees or higher interest rates on savings. If you belong to a credit union, ask whether they have a youth account program. Some credit unions also offer financial literacy classes for children, which can reinforce what your child learns by using the account.
What you need to bring to open the account
To open a joint account for your child, bring your government-issued photo ID (driver's license, passport, or state ID) and your child's Social Security number. Some banks also ask for a second form of ID or proof of address, such as a utility bill or lease. A few banks require the child to be present in person; others let you open the account online or by phone with just the child's information.
If your child does not have a Social Security number yet, you can obtain one from the Social Security Administration. The process takes about two weeks. You can apply in person at your local Social Security office or by mail using Form SS-5. Once you have the number, you can open the bank account.
Some banks waive certain requirements if you are already a customer. If you have a checking or savings account at the bank, opening a youth account for your child may be faster and require less paperwork. Call ahead or check the bank's website to confirm what documents you need.
Debit cards, spending limits, and parental controls
If the account comes with a debit card for your child, you control how it is used. Most banks let you set a daily spending limit—the maximum amount your child can withdraw or spend in a 24-hour period. You can also usually restrict where the card works: some parents turn off online purchases, gas station transactions, or purchases at certain merchants. A few banks let you block the card entirely until you approve a specific transaction.
These controls teach your child to budget without putting large sums at risk. If your child loses the card or it is stolen, you can freeze or cancel it immediately from your phone or computer, and the bank will issue a replacement. Debit card fraud is rare for children's accounts because the daily limit caps the damage, but if unauthorized charges do occur, report them to the bank right away. Most banks reverse fraudulent charges within a few business days.
Not all youth accounts include a debit card. Some banks offer only a savings account with no card, which means your child can deposit money and watch it grow but cannot spend it directly. This approach works well if your goal is to teach saving rather than spending management. Your child can still withdraw money by visiting the bank with you or asking you to withdraw it on their behalf.
Interest rates and how money grows in the account
Youth accounts typically earn very little interest—often between 0.01% and 0.05% annually, depending on the bank and the account type. This means if your child has $500 in the account, they might earn between 5 cents and 25 cents per year. The rate is low because banks pay higher rates on accounts with larger balances or special conditions, and youth accounts are designed for learning, not profit.
Some credit unions and online banks offer slightly higher rates on youth savings accounts—occasionally 0.1% or more—but the difference is still small. The real value of the account is not the interest earned but the habit of saving and the visibility into how banking works. If your child deposits money regularly and watches the balance grow, they learn that saving is possible and that money can sit safely in a bank rather than under a mattress.
Interest is calculated daily and deposited monthly or quarterly, depending on the bank. Your child will see the interest appear on the statement, which reinforces the idea that money in a bank account works for you over time.
What happens when your child turns 18
When your child reaches 18, the account can transition to a standard adult account. At that point, your child can legally own and manage the account independently. You have three options: keep the account as a joint account with both names on it, remove your name and let your child take over alone, or close the account and let your child open a new one in their own name.
Most banks make this transition automatic or very simple. You and your child can visit the bank together, or your child can call the bank and request the change. If you remove your name, you lose access to the account and can no longer see the balance or transactions. Your child becomes the sole owner and can do whatever they want with the money.
Some parents keep their name on the account even after the child turns 18, which allows them to monitor spending or help manage the account if needed. This is a personal choice and depends on your relationship with your child and their financial responsibility. If you do keep your name on the account, either of you can still withdraw money or close the account, so discuss expectations beforehand.
Frequently Asked Questions
Can my 10-year-old use the debit card without my permission?
That depends on the bank's parental controls. If you set the account to require your approval for each transaction, your child cannot use the card without you saying yes first. If you only set a daily spending limit, your child can use the card up to that limit without asking. Most banks let you choose which level of control you want.
What if my child loses the debit card?
Call the bank immediately and report it lost. The bank will freeze the card so no one else can use it, and they will mail a replacement card to you within 5 to 10 business days. If someone used the card before you reported it lost, the bank will investigate and reverse fraudulent charges. Your child is not responsible for unauthorized use on a debit card.
Can my child open an account without me?
No. At 10 years old, your child cannot sign a contract or open an account alone. A parent or guardian must open the account and remain on it until your child turns 18. Some banks allow you to open the account online without the child present, but your name must be on the account.
Do I need to report the account to the IRS or pay taxes on the interest?
If the account earns more than $10 in interest in a year, the bank will send you a Form 1099-INT, and you may need to report it on your tax return. However, youth accounts earn so little interest that this is unlikely. Check with a tax professional if you have questions about your specific situation.
What if I want to close the account before my child turns 18?
You can close the account at any time since you are the primary account holder. The bank will give you the remaining balance in cash or transfer it to another account. Your child cannot prevent you from closing it, but you should discuss it with them first so they understand what is happening to their money.