Yes, but the account structure depends on the child's age and your relationship

You can open a bank account connected to your grandchild, but you cannot open one in their name alone if they are under 18. Banks require a parent or legal guardian to sign. If you are the grandparent, you have three real options: open a joint account with yourself and the child (if the child is old enough), open an account in your own name that you intend to give to them later, or ask the parent to open an account and add you as an authorized user or co-owner.

The path that works depends on whether the parents are involved, whether you want the child to access the money now, and what you are trying to accomplish—saving for college, teaching money habits, or setting aside an inheritance.

Most banks do not have a minimum age for a child to be on a joint account, but some require the child to be at least 13 to use a debit card or online banking. A few banks offer accounts specifically for minors with a parent or guardian as co-owner, which can be simpler than a true joint account.

Key Takeaways

  • You cannot open a bank account in your grandchild's name alone; a parent or legal guardian must sign, even if you are funding it.
  • A joint account with you and your grandchild lets you both access the money, but the child may not be able to use a debit card until age 13 or older depending on the bank.
  • If you want the money to go to your grandchild after you die, putting it in your own name and naming them as a beneficiary in your will or through a payable-on-death designation is simpler than a joint account.
  • Ask the parents first—most banks will not let you open an account for a minor without parental consent, and doing it secretly can create legal and family problems.
  • Some banks offer custodial accounts or UTMA/UGMA accounts, which are designed for this exact situation and give the child control at age 18 or 21.

Joint accounts: what happens when you both own the money

A joint account means you and your grandchild are both owners. You can both deposit and withdraw money. The account stays open and accessible to both of you as long as you both live. When one of you dies, the surviving owner typically keeps the full balance—the money does not go through probate or your will.

This works well if you want to teach your grandchild about banking and saving while they are young, or if you want them to have access to emergency money. It also works if you are managing money on their behalf—for example, if they receive child support or inheritance and the parents ask you to hold it.

The downside: if you die, your grandchild owns the full account balance outright, regardless of what your will says. If you have other grandchildren or debts, this can create problems. Also, if your grandchild is sued or gets into debt later, creditors can go after a joint account.

Accounts in your name only, with your grandchild as beneficiary

You can open a savings account in your own name and name your grandchild as the beneficiary. This means the money stays yours while you are alive—you control it completely. When you die, the account goes directly to your grandchild without going through probate, usually within days or weeks.

This is the clearest option if you are saving money specifically to leave to your grandchild but do not want them to touch it while you are alive. It also protects the money from your grandchild's future creditors or legal problems, because they do not own it yet.

To set this up, tell the bank you want to name a beneficiary on the account. Most banks call this a payable-on-death (POD) designation or transfer-on-death (TOD) account. You fill out a form with your grandchild's name and Social Security number. There is usually no fee. When you die, your grandchild will need to bring a death certificate to the bank to claim the money.

Custodial accounts: money held in trust until they turn 18 or 21

A custodial account is opened in your grandchild's name, but you (or another adult) act as the custodian—the person who manages it until the child reaches the age of majority. The most common types are UTMA (Uniform Transfers to Minors Act) and UGMA (Uniform Gifts to Minors Act) accounts. These exist specifically for situations like yours.

You deposit money into the account in your grandchild's name. The child's Social Security number is used, not yours. You manage the account and decide how the money is spent—typically on the child's education, medical care, or other needs. When your grandchild turns 18 or 21 (depending on your state and the account type), they take full control and you have no say anymore.

The advantage is that it is clear this money belongs to the child, and it is designed by law for exactly this purpose. The disadvantage is that at age 18 or 21, they own it outright and can spend it however they want. Also, money in a custodial account can affect financial aid for college.

Not all banks offer custodial accounts. Call ahead or check the bank's website. You will need the child's Social Security number and a parent or guardian to sign the paperwork.

What you need from the parents before you start

Do not open an account without talking to the parents first. Banks require a parent or legal guardian to sign for any account in a minor's name. If you try to open one without their knowledge, the bank will refuse, or if you somehow succeed, the parents can challenge it later.

Ask the parents which option they prefer: a joint account, a custodial account, or something else. Ask whether they want to be listed on the account themselves. Ask what the money is for—college savings, emergency funds, teaching money habits—because that affects which account type makes sense.

Bring a photo ID, your Social Security number, and your grandchild's Social Security number. The parents will need to bring their ID and sign the paperwork. Some banks also ask for proof of address, like a utility bill or lease.

Age limits and what your grandchild can actually do

There is no legal minimum age to be on a joint account or custodial account. However, most banks do not issue a debit card or allow online banking access until the child is at least 13. Some banks wait until 16 or 18.

If your grandchild is very young—under 10—a joint account or custodial account will sit dormant until they are old enough to use it. You can still deposit money and manage it, but they cannot withdraw it themselves. This is fine if you are saving for their future.

If your grandchild is a teenager and you want them to learn to use a debit card and check their balance online, ask the bank what age they allow. Some banks have teen checking accounts with parental controls, which let you set limits on spending and see transactions.

Tax and financial aid consequences

Money in a custodial account is considered the child's asset for tax purposes. If the account earns interest or investment gains, your grandchild may owe taxes on that income. The first $1,250 of unearned income (interest, dividends) is usually tax-free for a dependent child, but anything above that is taxed. Ask your tax preparer or the bank about this.

If your grandchild applies for financial aid for college, money in a custodial account counts as their asset and can reduce the amount of aid they receive. Money in a joint account in your name counts as your asset, which has less impact on financial aid. This is one reason some grandparents prefer to keep college savings in their own name.

Frequently Asked Questions

Can I open an account for my grandchild without telling the parents?

No. Banks require a parent or legal guardian to sign for any account in a minor's name. If you try without their consent, the bank will refuse. Even if you somehow opened one, the parents can challenge it and have it closed. It is also likely to damage your relationship with them.

What happens to a joint account when I die?

The full balance goes to your grandchild automatically. It does not go through your will or probate. This happens whether or not your will says something different. If you want the money split among multiple grandchildren or used for other purposes, a joint account is not the right choice.

Can my grandchild access the money in a custodial account before age 18?

Not on their own. You, as the custodian, can withdraw money and spend it on the child's needs—education, medical care, living expenses. But the child cannot access it themselves until they reach the age of majority, which is 18 in most states and 21 in a few.

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

Yes, for any account in the child's name or as a joint owner. For an account in your name only with the child as a beneficiary, you typically need their Social Security number too, but you can add it later when you name them as beneficiary. Ask the bank what they need before you go in.

What if the parents are divorced or one parent refuses to sign?

Both parents usually need to sign, or the one with legal custody. If the parents are in conflict, ask the bank what their policy is. Some banks will accept a custody order or court document showing who has the right to make decisions for the child. If you are the legal guardian, bring the guardianship paperwork.