You can open a savings account for someone else, but the rules depend on their age and your relationship to them
If you want to open a savings account in someone else's name, the answer is almost always no — unless that person is a minor and you are their parent, legal guardian, or court-appointed conservator. Banks will not let you open an account solely in another adult's name without their direct involvement and signature. If you are trying to set money aside for an adult, you have other options: a joint account where you both own the money, a trust account held in your name for their benefit, or simply giving them the money to open their own account.
The rules are different for children. A parent or legal guardian can open a custodial savings account (also called a UTMA or UGMA account, depending on your state) in a child's name. The child's Social Security number goes on the account, but you control it until they reach the age of majority — usually 18 or 21. The money legally belongs to the child, not to you, even though you manage it.
Key Takeaways
- You cannot open a savings account in an adult's name without their presence, signature, and consent — banks require this in person or through verified digital channels.
- A parent or legal guardian can open a custodial account for a minor child using the child's Social Security number, and the parent controls the account until the child reaches adulthood.
- A joint account lets you and another adult both own and access the same money, but both of you must sign the paperwork and provide ID.
- If you want to set money aside for an adult without their knowledge, a revocable living trust or a payable-on-death account are the legal ways to do it.
- Banks verify identity through government-issued ID, and some now use digital verification — they will not accept a third party's ID as proof of someone else's identity.
Opening a custodial account for a child
If the person you want to open an account for is a minor, you can open a custodial savings account in their name. You will need the child's Social Security number, date of birth, and address. You will also need to bring a government-issued ID that shows your name and address — the bank is verifying that you are who you say you are, not that you have the right to control the child's money. The account is opened in the child's name, but you are listed as the custodian.
The money in a custodial account belongs to the child, not to you. This matters for taxes and for what happens if you die or face legal trouble. Income the account earns (interest, dividends) is taxed on the child's tax return, not yours. If you pass away, the money does not go into your estate — it stays in the child's account and is managed by whoever you named as successor custodian, or by the court if you did not name anyone.
The account stays under your control until the child reaches the age of majority in your state — usually 18, but sometimes 21. At that point, the money becomes theirs to withdraw and use however they want. You cannot prevent them from taking it out. Some banks let you set up restrictions before that age, like requiring your signature for withdrawals over a certain amount, but these are optional features, not legal requirements.
Joint accounts with another adult
If you want to open an account with another adult — a spouse, adult child, business partner, or anyone else — you can open a joint account. Both of you own the money equally, and both of you can withdraw from it without the other's permission. The account is held in both names.
To open a joint account, both people must be present (or both must verify their identity through the bank's digital process). Both must sign the paperwork. Both must provide government-issued ID. The bank is not asking whether you trust each other or whether you have a good reason to share the account — it is verifying that both account holders are who they say they are.
Joint accounts are useful if you and another adult want to pool money for a shared goal — a household fund, a business account, or savings for a trip. They are also used by spouses and by adult children managing finances for an aging parent. But understand that the other person has full access to the money. If the relationship ends or trust breaks down, they can withdraw everything without your permission.
Trusts and payable-on-death accounts for adults
If you want to set money aside for an adult without their knowledge or involvement, a bank account alone will not work. But you have two legal options: a revocable living trust or a payable-on-death (POD) account.
A payable-on-death account is simpler. You open a savings account in your own name, but you name a beneficiary — the person you want the money to go to when you die. The account is yours while you are alive. You control it, you withdraw from it, you pay taxes on it. When you die, the money passes directly to the beneficiary outside of your will or estate. The beneficiary has no access to the account while you are alive, and they do not need to sign anything to set it up.
A revocable living trust is more complex but gives you more control. You create a trust document (usually with a lawyer) that names you as trustee and another person as beneficiary. You fund the trust by transferring money into a trust account. You can change the terms or take the money back anytime while you are alive. When you die or become unable to manage your finances, the successor trustee you named takes over and manages the money for the beneficiary's benefit. This is often used when you want to leave money to someone but also want to ensure it is managed carefully — for example, leaving money to an adult child with a substance abuse problem, or to a grandchild with a disability.
Why banks will not let you open an account in someone else's name
Banks have strict identity verification rules. They must confirm that the person whose name goes on the account is actually that person, and that they are consenting to the account. This is a federal requirement under the Customer Identification Program (CIP), part of anti-money-laundering law. A bank cannot accept your ID as proof that you are someone else. They cannot accept a power of attorney or a letter from you saying you have permission. They need to see the account holder's own ID and hear directly from them that they want the account.
This rule exists to prevent fraud and identity theft. It also protects the other person — if someone could open an account in your name without your knowledge, you could end up liable for overdrafts or other problems. The rule protects both the bank and the account holder.
Some banks now offer digital account opening, where you can verify your identity through your phone using a video call or by uploading photos of your ID. But the person whose name goes on the account must be the one doing the verification. You cannot do it on their behalf.
What to do if someone asks you to open an account for them
If an adult asks you to open a savings account for them, the fastest route is to have them open it themselves. Most banks let you open an account online in minutes. You will need their Social Security number, date of birth, address, and a government-issued ID. If they cannot get to a bank branch or do not have internet access, they can ask you to go with them — both of you go in, they bring their ID, and they sign the paperwork in front of the bank employee.
If the person is elderly, disabled, or otherwise unable to manage their own finances, a power of attorney is the legal tool. A power of attorney is a document they sign (usually with a lawyer or notary) that gives you the right to act on their behalf — including opening accounts, withdrawing money, and paying bills. The person must sign it themselves, and they must understand what they are signing. A power of attorney only works while the person is alive and mentally competent. If they become incapacitated and never signed a power of attorney, you may need to go to court to become their conservator or guardian.
Frequently Asked Questions
Can I open a savings account for my adult child without them knowing?
No. Banks require the account holder to verify their own identity and consent to the account. You cannot open an account in someone else's name without their knowledge. If you want to set money aside for them, you can open an account in your own name and name them as the payable-on-death beneficiary, or create a trust.
What if I have power of attorney for someone — can I open an account in their name?
Yes, if you have a valid power of attorney document. Bring the original or a certified copy to the bank along with your ID and the person's ID. The bank will verify the power of attorney and let you open the account. But the account will still be in their name, and they retain ownership of the money.
Can I add someone else's name to my existing savings account?
You can convert your account to a joint account, but the other person must come to the bank and sign the paperwork. They must bring their ID. The bank will not add their name based on your request alone. Once they are added, they have full access to the money.
Do I need a lawyer to open a custodial account for my grandchild?
No. You can open a custodial account at any bank without a lawyer. Bring your ID, the child's Social Security number, and their date of birth. The bank will handle the paperwork. A lawyer is only necessary if you want to set up a more complex trust or if there is a custody dispute.
What happens to a custodial account when the child turns 18?
The money becomes theirs to withdraw and use however they want. You lose control of the account. Some banks let you set withdrawal limits before the child reaches adulthood, but these are optional and do not prevent the child from taking the money once they are legally an adult.