Yes, but the rules depend on your nephew's age and your relationship to him

You can open a bank account for your nephew, but what you can actually do with it depends on whether he is a minor or an adult, and whether you have legal guardianship. If your nephew is under 18, you will need to be his parent or legal guardian to open an account in his name alone. If you are neither, you can open a joint account with him or a custodial account, but the bank will require proof of your relationship and may ask why you are opening it. If your nephew is 18 or older, he can open his own account, and you cannot open one for him without his presence and signature — though you can help him do it.

The specific rules vary by bank and by state. Some banks allow non-parent relatives to open accounts for minors if they have a power of attorney or guardianship documents. Others will not. Before you go to the bank, call ahead and ask what documents they need and whether your situation qualifies.

Key Takeaways

  • If your nephew is a minor and you are his parent or legal guardian, you can open an account in his name with your signature as the responsible adult.
  • If you are a relative but not his guardian, you can open a joint account with him or a custodial account, but the bank will ask for proof of relationship and may require his presence.
  • If your nephew is 18 or older, he must open his own account in person with a valid ID; you cannot do it for him, but you can accompany him and help him through the process.
  • Different banks have different rules about who can open accounts for minors, so call your bank before you visit to confirm what documents you need.
  • You will need to provide your nephew's Social Security number, date of birth, and address, plus your own identification and proof of relationship.

Opening an account when you are the parent or legal guardian

If you have legal guardianship of your nephew or are his parent, the bank will treat you as the account owner for purposes of deposits, withdrawals, and account management. You will sign the account agreement, and your nephew's name will appear on the account. You can deposit money, withdraw money, and make decisions about the account without his permission — he is not yet legally responsible for it.

Bring your identification, your nephew's birth certificate or Social Security card, proof of your guardianship (if you are not his parent), and proof of address for both of you. Some banks also ask for a second form of ID. The account will typically be opened the same day, though it may take a few business days for the debit card to arrive by mail.

Opening a joint account or custodial account when you are a relative but not the guardian

If you are an aunt, uncle, grandparent, or older sibling but not your nephew's legal guardian, you have two options: a joint account or a custodial account. A joint account has both your names on it, and either of you can deposit or withdraw money. A custodial account (also called a UTMA or UGMA account, depending on your state) is held in your nephew's name, but you manage it until he reaches the age of majority — usually 18 or 21, depending on your state and the type of account.

For a joint account, the bank will require both you and your nephew to be present with valid identification. For a custodial account, some banks allow you to open it with just your nephew's information and your guardianship or power of attorney documents, but others require him to be present. Call ahead to ask. Custodial accounts have tax advantages if the money is meant to be his in the future, but they also become his property at the age of majority, so he can withdraw it and spend it however he wants once he turns 18 or 21.

What you need to bring to the bank

Bring your own government-issued photo ID (driver's license, passport, or state ID card). Bring your nephew's Social Security number or Individual Taxpayer Identification Number (ITIN), his date of birth, and his current address. If he is a minor, bring his birth certificate or a copy of it. If you are claiming guardianship, bring the guardianship order or a certified copy of it.

Bring proof of your address — a recent utility bill, lease, mortgage statement, or bank statement with your name and address on it. Some banks also ask for a second form of ID from you, such as a passport or military ID. If you are opening the account by mail or online, the bank will tell you which documents to photograph or scan and upload.

Opening an account for an adult nephew

If your nephew is 18 or older, he is legally an adult and must open his own account. You cannot open one for him, even if you have his Social Security number and permission. He must appear in person at the bank with a valid photo ID (driver's license, passport, or state ID card) and sign the account agreement himself. You can go with him and help him fill out the forms, but the account will be in his name only, and he will be the one responsible for it.

If he does not have a photo ID, most banks will not open an account for him. He will need to get one from the state DMV or apply for a passport. Some banks accept a state ID card that is not a driver's license, and a few accept a passport card or military ID. Call the bank to ask what forms of ID they accept before he goes in.

Why a bank might refuse to open the account

Banks use a system called ChexSystems to check whether an applicant has a history of unpaid overdrafts, fraud, or other banking problems. If your nephew has a ChexSystems record, some banks will refuse to open an account for him. This is rare for minors but more common for young adults who have had banking problems in the past.

Banks also refuse accounts if they cannot verify your identity or your nephew's identity, or if they suspect fraud. If the bank asks for documents you do not have, ask whether there is an alternative form of proof they will accept. If the bank refuses the account, ask for the reason in writing — you may be able to address it or try a different bank.

What happens after the account is open

Once the account is open, the bank will issue a debit card, usually within 5 to 10 business days. If you are the guardian or account owner, you can use the card to withdraw money or make purchases. If the account is in your nephew's name and you are a joint owner, you can both use the card. If it is a custodial account, your nephew cannot use the card until he reaches the age of majority, even though the account is in his name.

You can deposit money into the account by transferring it from your own bank account, depositing cash at a branch, or mailing a check. Most banks allow you to set up automatic deposits from your paycheck or another account. You can also set up automatic bill payments or transfers to teach your nephew how to manage money, if that is the goal of opening the account.

Frequently Asked Questions

Do I need my nephew's permission to open an account for him?

If he is a minor and you are his parent or legal guardian, no — you can open the account without his permission. If you are a relative but not his guardian, the bank will likely require him to be present or to sign a form giving you permission. If he is 18 or older, he must be present and sign the account agreement himself.

Can I open an account for my nephew if I do not have guardianship papers?

Yes, but your options are limited. You can open a joint account with him if he is present with ID, or a custodial account if the bank allows it and you can prove your relationship. Call the bank first to ask what they require. If they refuse, try a different bank — rules vary.

What if my nephew is 18 but has no ID?

He will need to get a photo ID before the bank will open an account for him. He can apply for a state ID card or driver's license at the DMV, or a passport at a post office or passport agency. This usually takes one to two weeks. Some banks accept a passport card or military ID if he has one.

Can I withdraw money from my nephew's account without asking him?

If you are the parent or legal guardian and the account is in his name with you as the responsible adult, yes — you can withdraw money. If it is a joint account, yes. If it is a custodial account, yes, until he reaches the age of majority. After that, it is his money and you cannot touch it without his permission.

What is the difference between a joint account and a custodial account?

A joint account has both names on it and either person can withdraw money at any time. A custodial account is in your nephew's name, but you control it until he turns 18 or 21. Once he reaches that age, a custodial account becomes his property and he can withdraw all of it. A joint account remains joint unless he removes you from it.