Yes, you can open a bank account at 16, but with restrictions
Most banks and credit unions allow you to open a checking or savings account at 16 without a parent or guardian present, though a few require you to be 18. The catch: at 16, you cannot legally sign contracts on your own in most states, so banks handle this by making the account a custodial account — your parent or guardian remains the legal owner and can access it, even if you manage it day-to-day.
Some banks offer accounts specifically for teens that work differently. These accounts let you build credit and learn money management while keeping parental oversight built in. Others let you open a regular account at 16 if a parent co-signs or is present. The rules vary by bank and by state, so you need to call ahead or check the bank's website before you go in.
The real question is not whether you can open an account — you can — but what kind of account makes sense for what you want to do with it.
Key Takeaways
- Most banks allow you to open a checking or savings account at 16, but the account is legally owned by your parent or guardian until you turn 18.
- Some banks offer teen accounts with limited features and built-in parental controls; others let you open a standard account with a parent co-signing.
- You will need a government-issued ID (state ID or passport), proof of address, and your Social Security number to open any account.
- At 16, you can use a debit card linked to your account, but you cannot open a credit card or take out a loan without a co-signer.
What happens at the bank when you open an account at 16
Bring your state ID or passport, proof of your address (a utility bill or lease with your name on it, or a letter from school), and your Social Security number. Some banks also ask for a second form of ID. You and your parent or guardian both need to be present, or the bank will have you sign papers that make the account custodial — meaning your parent owns it legally, even though you can use the debit card and deposit money.
The bank will run a background check through ChexSystems, a database that tracks banking history and fraud. If you have never had a bank account before, you will pass this automatically. If you have closed accounts or had overdrafts, the bank may decline you or require a parent to co-sign.
Once the account is open, you get a debit card, online access, and (usually) a checkbook. You can deposit paychecks, transfer money between your accounts, and withdraw cash. Your parent can see all transactions and can withdraw money, but most banks let you set up a PIN so only you can use the debit card.
Teen accounts versus standard accounts with a parent co-signer
A teen account is designed for your age group and usually comes with parental controls built in. Banks like Ally, Greenlight, and Fidelity offer these. They often have no monthly fees, no minimum balance, and let your parent set spending limits or block certain types of transactions. Some let your parent approve purchases over a certain amount. The trade-off is that these accounts may not report to credit bureaus, so using one does not help you build credit.
A standard account with a parent co-signer is a regular checking or savings account that your parent signs for alongside you. You both own it legally. This account may report to credit bureaus if you use it responsibly, which helps you build credit history. However, you get fewer built-in controls — your parent has to trust you not to overdraft or spend recklessly, because they cannot set spending limits the way they can on a teen account.
If you want to build credit, a standard account is better. If you want your parent to have more oversight, a teen account is better. Ask the bank which option they offer at 16.
What you cannot do at 16, even with an account
You cannot open a credit card on your own. You can become an authorized user on your parent's card, which means you get a card linked to their account and can make purchases, but you are not the account holder and it does not build your own credit history. At 18, you can apply for your own credit card.
You cannot take out a loan, even a small one. If you need to borrow money, a parent or guardian has to be the borrower and you become an authorized user or co-borrower.
You cannot open a money market account or invest in stocks through a brokerage account on your own. Your parent can open a custodial investment account for you (called a UTMA or UGMA account in most states), but you cannot manage it yourself until you turn 18 or 21, depending on the state.
You cannot set up a business account or sole proprietorship account. If you are self-employed (freelancing, tutoring, lawn care), you can deposit income into your personal account, but you cannot open a business checking account until you are 18.
How to use your account to start building credit
Opening a bank account does not build credit by itself. Credit bureaus track loans, credit cards, and payment history — not checking accounts. However, a bank account is the foundation you need to do the things that do build credit.
At 16, you can become an authorized user on a parent's credit card. Ask them to add you to an account they pay on time and in full each month. The account will appear on your credit report, and if the parent pays reliably, it helps your score. You do not have to use the card — just being on the account counts.
At 18, you can apply for a secured credit card, which requires a cash deposit (usually $200 to $2,500) that becomes your credit limit. You use it like a regular card, and if you pay on time, the card issuer reports it to credit bureaus. After 6 to 18 months of on-time payments, you can graduate to a regular card and get your deposit back.
Until then, focus on keeping your bank account in good standing: no overdrafts, no returned checks, no closed accounts. This does not build credit, but it keeps your banking record clean, which matters when you apply for credit later.
Banks and credit unions that let you open an account at 16
| Institution | Account Type | Minimum Age | Parent Required |
|---|---|---|---|
| Chase | Chase First Banking (checking) | 6 | Yes, co-owner |
| Bank of America | BankSafe Student (checking) | 13 | Yes, co-owner |
| Wells Fargo | Way2Save Savings | 0 (with parent) | Yes, co-owner |
| Ally Bank | Teen Checking | 13 | Yes, parent controls |
| Greenlight | Greenlight Card (debit) | 6 | Yes, parent app |
| Most credit unions | Checking or savings | 16–18 (varies) | Varies by union |
Call your bank or credit union before you visit. Some branches have different policies, and some have closed teen accounts in recent years. Asking first saves you a wasted trip.
What happens to your account when you turn 18
If your account is custodial, it does not automatically convert to a solo account at 18. You and your parent need to go back to the bank and sign new paperwork to remove your parent as the legal owner. Some banks do this automatically and send you the forms; others require you to request it. Check with your bank about their process.
Once the account is in your name alone, your parent can no longer see transactions or withdraw money, though they can still be listed as an authorized user if you choose. At this point, you are fully responsible for overdrafts, fees, and account management.
At 18, you can also apply for a credit card on your own, open a brokerage account, or take out a loan. Your bank account history from age 16 onward will be part of your credit file, so keeping it clean matters.
Frequently Asked Questions
Do I need my parent to be present when I open an account at 16?
Most banks require a parent or guardian to be present and to sign paperwork making them a co-owner or custodian. A few banks let you open an account online with a parent's consent, but they still need to verify the parent's identity. Call ahead to ask whether your bank allows in-person, online, or hybrid opening.
Can I hide my account from my parent?
No. If the account is custodial, your parent is the legal owner and can access it anytime. If your parent is a co-owner, they have the same rights to the account as you do. The only way to have a fully private account is to wait until you are 18 and open one in your name alone.
What if my bank says I have to be 18 to open an account?
Some banks and credit unions have raised their minimum age to 18 in recent years. If your bank says no, try a different bank or credit union in your area. Many credit unions have lower minimums than national banks, and online banks like Ally and Greenlight specifically serve teens.
Will opening a bank account hurt my credit score?
No. Opening a bank account does not affect your credit score because banks do not report checking or savings accounts to credit bureaus. Only credit products (credit cards, loans, lines of credit) show up on your credit report.
Can I open a savings account instead of a checking account?
Yes. A savings account works the same way — your parent can be a co-owner or custodian, and you can deposit and withdraw money. Savings accounts usually earn a small amount of interest, while checking accounts do not. You can also open both at the same bank.