Yes, but the account belongs to them until you reach the age of majority

Your parents can open a bank account in your name, but the legal owner is your parent until you turn 18 (or 19 in some states). The account is called a custodial account or minor account, and your parent has full control—they can deposit money, withdraw it, and close the account without your permission. You cannot access the account independently or make decisions about the money inside.

Once you reach the age of majority in your state, the account typically converts to a standard account in your name alone, and you gain full control. Some banks require you to visit in person to complete this conversion; others do it automatically. The timing and process vary by bank, so ask about their specific policy when the account is opened.

If you want an account you control yourself right now, you have other options depending on your age and your bank's rules. Some banks offer teen accounts that let you make transactions with parental oversight, and some allow minors to open accounts independently at 13 or older.

Key Takeaways

  • A custodial account opened by your parent is legally theirs to control until you reach the age of majority, usually 18.
  • Your parent can deposit, withdraw, and spend the money without your permission while the account is in custodial status.
  • The account converts to your sole control when you turn 18, though some banks require you to visit in person to finalize the switch.
  • Teen accounts and independent minor accounts offer more control to you while you are under 18, but availability depends on your bank and your age.

What happens to the money if your parent passes away

The money in a custodial account belongs to you, not your parent's estate. If your parent dies, the account does not go through probate or get divided among heirs. Instead, the account transfers to you or to a court-appointed guardian, depending on your age and your state's law.

If you are old enough to manage the account (usually 18 or older), the bank will release the funds to you directly. If you are younger, a guardian or conservator appointed by the court takes control until you reach the age of majority. The bank will ask for a death certificate and court documents before making any changes.

This is one reason custodial accounts are useful: the money is protected and goes directly to you, not tangled up in your parent's other assets. However, the account is still subject to your parent's creditors during their lifetime—if your parent owes money, creditors can potentially claim funds in the custodial account, depending on your state's law.

Teen accounts and accounts you can open yourself

If you want more control over your own money right now, ask your bank whether they offer a teen account or minor account with debit card access. These accounts let you make purchases and withdrawals with a debit card, while your parent receives alerts and can set spending limits. You still cannot overdraft or take out loans, but you have day-to-day independence.

Some banks allow minors as young as 13 to open accounts independently, without a parent as the legal owner. Chase, Bank of America, and Wells Fargo all have teen account products, though the minimum age and features vary. Credit unions often have lower age minimums and fewer fees. Call your bank or visit their website to ask what options exist for your age.

If your bank does not offer a teen account, your parent can open a custodial account and give you a debit card linked to it. This gives you spending access while your parent retains legal control and can monitor activity. It is a middle ground between full independence and no access at all.

How to convert a custodial account to your own when you turn 18

Contact your bank 30 to 60 days before your 18th birthday and ask what steps are required to convert the account. Some banks do this automatically on your birthday; others require you to visit a branch in person with a government-issued ID. A few require your parent to sign paperwork releasing control.

Bring your ID, your Social Security number, and any documents the bank requests. The bank will verify your identity, update the account registration to remove your parent's name, and issue you new debit cards and online login credentials if needed. The process usually takes one business day to one week.

If your bank does not convert automatically and you do not initiate the process, the account may remain in custodial status indefinitely. This means your parent retains legal control even after you turn 18. Do not assume it happens on its own—call and confirm the bank's policy.

What your parent can see and control

Your parent has full visibility into a custodial account. They can see every deposit, withdrawal, and purchase you make. They receive statements, can set up alerts, and can restrict certain types of transactions depending on the bank's tools. Some banks let parents set daily spending limits or block online purchases.

Your parent can also close the account or move the money to another account without your permission. They cannot, however, use the money for their own personal expenses without legal risk—the money is held in trust for you. If your parent spends custodial funds on themselves, you may have grounds to sue them after you turn 18, though this is rare and difficult to prove.

If you want privacy from your parent, a custodial account is not the right choice. Once you turn 18, you can open a separate account at a different bank that only you control, and your parent will have no access to it.

Taxes on money in a custodial account

Interest, dividends, or earnings from money in a custodial account are taxable. Your parent reports this income on their tax return using your Social Security number. The first $1,250 of unearned income per year (as of 2024) is usually not taxed, but amounts above that are taxed at your parent's rate until you turn 18.

This is called the kiddie tax rule, and it prevents parents from shifting income to children in lower tax brackets. After you turn 18, investment income in the account is taxed at your own rate. Keep records of any interest or earnings so your parent can report them accurately.

If the account earns very little—most savings accounts earn less than $50 per year—taxes are usually not a concern. But if the account holds investments or a large balance, ask your parent or a tax professional about the tax implications before opening it.

Frequently Asked Questions

Can I access the money in a custodial account before I turn 18?

Not independently. Your parent controls the account and can give you money if they choose, but you cannot withdraw funds yourself. Some banks offer debit cards linked to custodial accounts, which lets you spend money your parent has approved, but the account itself remains under their control.

What if my parent and I disagree about how to use the money?

Your parent has legal authority over the account until you turn 18. If you disagree about spending, your options are limited while you are a minor. After you turn 18, you gain full control and can do what you want with the money. If your parent refuses to convert the account or release funds you believe are yours, you may need to consult a lawyer.

Does a custodial account affect my credit score?

No. A custodial account does not appear on your credit report because it is not in your name legally—it is in your parent's name. This means it does not help or hurt your credit. When you turn 18 and the account converts to your name, it may then appear on your credit report, but only if the bank reports it.

Can I have both a custodial account and my own account?

Yes. You can have a custodial account your parent opened and also open your own account at 18 (or younger, depending on the bank). Some banks allow minors to open independent accounts as early as 13. Having both gives you flexibility—your parent can deposit money into the custodial account, and you can keep separate savings in an account only you control.

What happens if my parent's bank closes or goes out of business?

Your money is protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account owner. In a custodial account, you and your parent are considered separate account owners for FDIC purposes, so the account is covered up to $250,000. If the bank fails, the FDIC transfers your money to another bank or sends you a check.