Yes, parents can open a bank account for a child, but the type of account and your child's age determine what you can do
A parent can open a bank account in a child's name at most banks and credit unions. The account belongs to the child legally, but you control it as the parent or guardian until the child reaches the age of majority — typically 18 or 21, depending on your state. The bank will require your identification, the child's Social Security number, and proof of your relationship to the child, such as a birth certificate.
The most common option is a custodial account, also called a UTMA or UGMA account (Uniform Transfers to Minors Act or Uniform Gifts to Minors Act). You act as custodian, meaning you manage the money and make decisions about deposits and withdrawals. When the child turns 18 or 21, the account automatically transfers to their control — you no longer have access.
Some banks also offer teen checking accounts designed for children ages 13 to 17. These typically come with a debit card, limited overdraft protection, and parental controls so you can monitor spending. A few banks allow children as young as 6 to have accounts if a parent is a joint owner.
Key Takeaways
- A custodial account is opened in the child's name with you as custodian, and you control it until they reach 18 or 21 depending on your state.
- You will need the child's Social Security number, your ID, and proof of your relationship such as a birth certificate to open the account.
- Teen checking accounts for ages 13 and up often include parental controls and debit cards, letting you monitor spending while the child learns to manage money.
- When the child reaches the age of majority, the account transfers to their full control and you lose access, so plan accordingly if the account holds significant money.
- Some banks allow joint ownership with a parent on a regular account, but this differs from a custodial account and may have tax implications.
What documents you need to bring to the bank
Bring your government-issued photo 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 apply for one at your local Social Security office or online at ssa.gov; the process takes about two weeks.
The bank will also ask for proof that you are the child's parent or legal guardian. A birth certificate is the standard document. If you are a legal guardian but not the biological parent, bring the guardianship papers issued by the court. Some banks accept a copy; others want the original. Call ahead to confirm what your bank requires.
If you are opening the account in person, bring all documents with you. Many banks now allow online account opening for minors, in which case you upload photos of your ID and the child's birth certificate through their website or app.
Custodial accounts versus joint accounts
A custodial account is legally owned by the child, but you manage it as custodian. When the child turns 18 or 21, the account is theirs to control completely, and you have no further access or say in how the money is used. The money in the account counts as the child's asset for tax purposes, and any interest or earnings above a certain threshold may be taxed at the child's rate (which is often lower than yours).
A joint account is owned by both you and the child. You both have full access to the money at any time. When the child turns 18, the account remains joint unless you close it or remove yourself. The money is considered yours for tax purposes until the child reaches 18, after which it may be split. Joint accounts are simpler to set up and give you more control, but they blur the line between your money and the child's, which can complicate estate planning or financial aid decisions later.
For most families, a custodial account is the better choice if you want to teach the child about money and ensure they receive the funds when they are old enough. A joint account works if you simply want a place to save money for the child's near-term needs, like school supplies or a car down payment.
Age limits and what each account type offers
Most banks allow you to open a custodial account for a child of any age, including infants. You provide the child's Social Security number, and the account is set up immediately.
Teen checking accounts are typically available starting at age 13, though some banks begin at 10 or 12. These accounts usually come with a debit card, online banking access, and parental controls. Parental controls let you set spending limits, block certain types of transactions, or receive alerts when the card is used. Some teen accounts charge a monthly fee ($5 to $10); others are free if you maintain a minimum balance or set up direct deposit.
Savings accounts for younger children (under 13) do not include a debit card. You deposit money, and the child earns interest. The child cannot withdraw money without your permission. Interest rates on savings accounts are currently low — typically 0.01% to 0.05% annually at large banks, though some online banks and credit unions offer higher rates (0.5% to 2% or more).
Once the child reaches 18 or 21, depending on your state, the account automatically converts to a regular adult account in their name. You receive notice before this happens, usually 30 to 60 days in advance.
Tax implications of money in a child's account
Interest and earnings in a custodial account are taxed at the child's tax rate, not yours. For 2024, a child can earn up to a certain amount of unearned income (interest, dividends) before owing federal income tax. That threshold varies by year; check the IRS website or ask your tax preparer for the current limit. Above that threshold, the child owes tax on the earnings, though the rate is usually lower than yours.
If the account holds a large amount of money and earns significant interest, you may need to file a tax return for the child or report the earnings on your own return. Talk to a tax professional if the account balance exceeds $10,000 or earns more than a few hundred dollars per year in interest.
Money you deposit into the account is not taxable — only the interest or investment gains are. Withdrawals by the child are also not taxable, since they are using their own money.
What happens when the child turns 18 or 21
The exact age at which the account transfers to the child's control depends on your state and the type of account. Most states use 18 for UTMA accounts and 21 for UGMA accounts, but some states allow you to choose. Check with your bank or your state's laws to confirm the age for your account.
About 30 to 60 days before the transfer date, the bank will send you a notice. After the transfer, the account is the child's property. You no longer have access, cannot make withdrawals, and cannot control how the money is spent. If the child has not yet opened their own checking account, they will need to do so or convert the custodial account to a regular account in their name.
Plan ahead if the account holds a significant amount of money. Some parents discuss with their child how the money should be used — for college, a car, or living expenses. Others set up a meeting with the child and a financial advisor to talk about managing the money responsibly.
How to monitor spending and teach financial habits
If you open a teen checking account, use the parental controls to set limits and receive alerts. Most banks let you set a daily spending cap, block online or international purchases, or require your approval for transactions over a certain amount. Check your bank's app or website to see what controls are available.
Have regular conversations with the child about money. Review the account statement together each month, talk about what they spent and why, and discuss saving goals. Some families give the child an allowance and deposit it into the account so the child can practice budgeting.
If the account is a savings account with no debit card, the child learns that money takes time to grow and that withdrawals require planning. If it is a checking account with a card, the child learns how to use a card responsibly and see the immediate impact of spending.
Frequently Asked Questions
Can I open a bank account for a child without their Social Security number?
No. Banks are required by federal law to collect a Social Security number or Individual Taxpayer Identification Number (ITIN) for any account opened in a child's name. If the child does not have a Social Security number, apply for one at ssa.gov or your local Social Security office before opening the account. The process takes about two weeks.
What if I want to add money to the account after the child turns 18?
Once the account transfers to the child's control, you cannot add money to it without their permission. If you want to continue saving for the child, you can open a separate account in your own name or ask the child to let you deposit money into their account. Some families set up automatic transfers or give the child cash to deposit themselves.
Can a grandparent open a custodial account for a grandchild?
Yes. Grandparents can open custodial accounts in most states. You will need proof of your relationship to the child, such as a birth certificate showing the child's parents, and your own ID. Some banks may ask for written permission from the parents. Call your bank to confirm their policy before visiting.
Do I pay taxes on money I deposit into my child's account?
No. Money you deposit is not taxable. Only interest earned on the account balance and investment gains are subject to tax, and those are taxed at the child's rate. Withdrawals by the child are also not taxable, since the child is using their own money.
What happens if the child does not want the money when they turn 18?
Once the account transfers to the child's control, it is legally theirs. You cannot force them to keep it or use it a certain way. If you are concerned about how the child will handle a large sum, consider having a conversation before the transfer date about your hopes for the money, or discuss setting up a trust with an attorney if the amount is very large.