Most banks let you open a savings account at any age with a parent or guardian
You do not have to be a certain age to have a savings account. Banks and credit unions can open accounts for children of any age, but a parent or legal guardian must be the account owner or co-owner until the child reaches the age of majority in their state — usually 18, sometimes 21.
The account itself belongs to the child, and the money in it is legally theirs. The parent's role is to manage the account on their behalf until they are old enough to do so alone. Some banks call this a "custodial account" or "minor account." Others simply list the parent as a co-owner with the same access.
The rules vary slightly by bank and by state, so the specific age at which your child can take full control of the account depends on where you bank and where you live. A few banks have raised their age to 21 for independent account ownership, but 18 is far more common.
Key Takeaways
- A parent or guardian must open and manage the account until the child reaches the age of majority, which is 18 in most states.
- The money in the account belongs to the child, not the parent, even though the parent controls it.
- Some banks allow teenagers to transition to independent ownership at 16 or 17, while others require 18 or 21.
- You will need the child's Social Security number and proof of identity for the parent to open the account.
- Custodial accounts do not require a minimum balance at most banks, though some have small opening deposits.
What you need to bring to open an account for a child
The parent or guardian will need to bring their own government-issued ID and proof of address, just as they would to open an account for themselves. You will also need the child's Social Security number — the bank will ask for this even for infants.
Some banks ask for a birth certificate or other proof of the child's identity, though many do not. Call the bank ahead of time to ask what documents to bring. If you are opening the account online, you may be able to upload images of these documents instead of visiting a branch.
If you do not have the child's Social Security number yet, you can apply for one at your local Social Security office or online at ssa.gov. The process takes a few weeks by mail, though you can get a temporary number in person the same day.
When a teenager can take control of their own account
Most banks automatically convert a custodial account to a standard account when the child turns 18, without requiring any action from the parent. At that point, the teenager can access the account, make withdrawals, and manage it independently. The parent's name may stay on the account, but the teenager no longer needs permission to use it.
Some banks let teenagers take independent control earlier — at 16 or 17 — but this is less common and varies by institution. A few banks require the teenager to visit a branch in person to complete the transition, while others handle it automatically or online.
If the teenager wants to remove the parent from the account after reaching the age of majority, they can usually do this by visiting a branch or calling the bank. The process is simple, but the parent will no longer have access once it is removed.
How custodial accounts affect taxes and financial aid
Money in a custodial account is considered the child's asset for tax purposes. If the account earns interest or dividends, the child may owe taxes on that income. The amount depends on how much interest the account earned that year — most savings accounts earn very little, so taxes are usually minimal or zero.
Custodial accounts can affect financial aid for college. The Free Application for Federal Student Aid (FAFSA) counts money in the child's name as an asset, which may reduce the amount of aid they receive. Money in the parent's name is treated differently and has less impact on aid calculations. This is one reason some families keep children's savings separate from their own accounts.
If you are concerned about how a savings account might affect financial aid later, speak with a tax professional or financial advisor before opening the account. They can explain the specific impact based on your family's situation.
Differences between banks and credit unions
Banks and credit unions both offer custodial savings accounts, and the age rules are similar at both. The main differences are in fees, interest rates, and membership requirements.
Credit unions often pay slightly higher interest on savings accounts and charge fewer fees than banks. However, you must be a member of the credit union to open an account there. Membership usually requires living or working in a certain area, belonging to a specific employer or organization, or having a family member who is already a member.
Banks are easier to join — you can open an account at most banks without any membership requirement — but they may charge monthly maintenance fees or require a minimum balance. Compare the interest rate, fees, and ease of access at a few institutions before deciding where to open the account.
Online banks and savings accounts for minors
Most online banks do not offer custodial accounts. They require account holders to be 18 or older because they cannot verify identity and age through video or document upload alone. If you want to use an online bank, you will likely need to wait until your child turns 18.
Some online banks have started offering accounts for teenagers 13 and older, but these are still uncommon. These accounts usually require a parent to verify their identity and approve the account setup, and the teenager can access it through a mobile app. Interest rates at online banks are often higher than at traditional banks, so it may be worth checking if your bank offers this option.
If an online bank is your preference, call ahead to ask about their minimum age requirement. Rules change, and some banks have recently lowered their age limits.
What happens to the account when the child turns 18
At 18, the account automatically becomes the teenager's sole responsibility in most cases. The parent's access does not end automatically — you will need to contact the bank to remove the parent from the account if that is what you want.
The teenager can now deposit and withdraw money without permission, set up direct deposit for paychecks, and make decisions about the account independently. They can also close the account or move the money to another bank if they choose.
Some banks send a notice to both the parent and the teenager when the account transitions, while others do not. If you want to make sure the transition happens smoothly, contact the bank a few weeks before the teenager's 18th birthday to confirm the process.
Frequently Asked Questions
Can I open a savings account for a newborn?
Yes. You will need the baby's Social Security number, which you can obtain from the Social Security Administration. Many parents open accounts for newborns to start saving for their future, and some grandparents do the same as a gift.
What if the parent dies or becomes unable to manage the account?
The account remains the child's property. If the parent is the sole account owner, you may need to go to court to have a new guardian or conservator appointed to manage it. If the parent is a co-owner with the child, the child can usually access the account once they reach the age of majority, even if the parent cannot.
Can a teenager open their own savings account without a parent?
No, not at most banks. Teenagers under 18 need a parent or guardian to open and manage the account. A few banks allow teenagers 16 and older to open accounts independently, but this is rare. Check with your bank to see if they offer this option.
Do I need to report the child's savings account to the government?
You do not need to report the account itself, but if it earns interest or other income, the child may need to file a tax return. The bank will send a 1099-INT form if the interest earned exceeds a certain amount. A tax professional can tell you whether a return is required based on the child's total income.
Can I move money from my account to my child's account without it being a gift?
Yes, you can transfer money to your child's account as a loan or as payment for work they have done. However, if you intend it as a gift, there are no restrictions on how much you can give. The IRS does not tax gifts to family members, though very large gifts may have reporting requirements — a tax professional can advise you on this.