What you need to open an account for a teenager
A teenager can open a savings account at most banks and credit unions, but the process depends on their age and whether a parent or guardian co-signs. Minors under 18 typically cannot open an account alone — a parent or guardian must be present and usually becomes a joint account holder or co-owner. Some institutions allow teenagers as young as 13 to open accounts with parental permission; others set the minimum at 16 or 18.
The documents you will need vary by bank, but generally include a government-issued ID for the teenager (a school ID, state ID, or passport), a parent or guardian ID, and proof of address. Proof of address can be a utility bill, lease, or mortgage statement in the parent's name. Some banks also ask for a Social Security number, which you should have on file already.
Call or visit the bank's website before you go in person. Ask whether they offer teen savings accounts, what the minimum opening deposit is (often $0 to $25), and whether there are monthly fees. Some banks waive fees for accounts under $500 or for students, while others charge $5 to $10 per month if the balance drops below a threshold.
Key Takeaways
- A parent or guardian must be present and usually co-sign or become a joint account holder when a teenager opens a savings account.
- Bring a government-issued ID for the teenager, a parent ID, proof of address, and the teenager's Social Security number.
- Minimum opening deposits range from $0 to $25 at most banks, but monthly fees can apply if the balance falls below a set amount.
- Teen savings accounts often come with limited debit card access, spending caps, or parental controls that you can adjust as the teenager matures.
- Credit unions sometimes offer lower fees and higher interest rates on savings than large banks, and many have no minimum balance requirements.
Joint accounts versus teen-specific accounts
A joint account lists both the teenager and the parent as owners with equal access. Both can deposit and withdraw money, and both names appear on statements and the debit card. This is the simplest route and works at any bank, but it means the parent can see every transaction and the teenager has no financial privacy. Joint accounts are common when a teenager is younger or when the goal is close parental oversight.
A teen savings account is designed specifically for minors and often comes with built-in limits. The teenager is the primary account holder, but the parent is listed as a custodian or co-owner with the ability to monitor activity and set spending rules. Many teen accounts cap daily ATM withdrawals at $50 to $100, limit debit card purchases, or require parental approval for transactions over a certain amount. These accounts give the teenager more independence while keeping guardrails in place.
Ask the bank which model they use and whether you can switch from one to the other as the teenager gets older. Some banks automatically convert a teen account to a standard account at age 18, while others require you to request the change. If privacy and independence matter to your teenager, a teen-specific account with adjustable controls is usually the better choice.
Where to open the account: banks versus credit unions
Large national banks like Chase, Bank of America, and Wells Fargo all offer teen savings accounts, and you can often start the process online or in a branch. Online banks like Ally and Marcus generally do not offer teen accounts because they cannot verify age and identity without in-person verification, though this varies. Credit unions, which are member-owned nonprofits, often have lower fees, higher interest rates on savings, and more flexible policies around minimum balances and age requirements.
If you already bank somewhere, start there — your bank likely has a teen product and you will not need to provide proof of address again. If you are choosing a new bank, compare the monthly fee (or whether it is waived for students), the interest rate on savings, and whether the account comes with a debit card. A debit card is useful for teaching spending habits, but some teen accounts charge $5 to $10 per year for the card itself.
Credit unions are worth checking if you have membership through an employer, a school, or a community organization. Many credit unions have no monthly fees on teen accounts, no minimum balance, and interest rates that are higher than banks offer. You can search for credit unions near you at CO-OP.org or Alliant.org, which list branches and ATMs you can use for free.
Steps to open the account in person
Go to a branch during business hours with the teenager, the parent or guardian, both IDs, proof of address, and the teenager's Social Security number. Tell the banker you want to open a teen savings account and ask which type they offer — joint or teen-specific with parental controls. The banker will ask for the documents, verify them, and run a background check (ChexSystems or Early Warning Services), which takes a few minutes.
You will then choose a starting deposit amount, usually $0 to $25. The banker will explain the monthly fee (if any), the interest rate, and any spending limits or parental controls. If the account comes with a debit card, ask whether it is issued immediately or mailed to the teenager's address — some banks print cards on-site, while others mail them within 5 to 10 business days.
Before you leave, ask for the account number, routing number, and online banking login information. Set up online banking and mobile banking on your phone and the teenager's phone so you can both monitor the account. If the account has parental controls, log in and adjust spending limits, transaction alerts, or approval requirements to match what you want.
Opening an account online or by mail
Some banks allow you to start a teen account online, but most still require at least one in-person visit to verify the teenager's identity. If the bank offers online opening, you will upload photos of both IDs, proof of address, and the teenager's Social Security number. The bank will then ask you to visit a branch within a set timeframe (usually 30 days) to complete the verification in person.
A few banks, particularly credit unions, allow you to open an account entirely by mail if you are an existing member. You will mail in signed forms, copies of IDs, and proof of address. This takes longer — usually 2 to 3 weeks — and you will not receive the debit card or account access until the bank has processed and verified everything. Online or mail opening is useful if you cannot visit a branch, but in-person opening is faster and lets you ask questions about features and fees on the spot.
Setting up parental controls and monitoring
Once the account is open, log into online banking and set up alerts so you receive a text or email each time the teenager makes a transaction. Most banks let you choose the alert threshold — for example, you might get an alert for every purchase, or only for transactions over $25. Alerts help you catch fraud quickly and let you discuss spending with the teenager in real time.
If the account has parental controls, you can usually set daily spending limits, block certain types of transactions (like online purchases or ATM withdrawals), or require your approval for purchases above a certain amount. Start with limits that match the teenager's age and responsibility level — for a 13-year-old, you might cap daily spending at $20; for a 16-year-old, $50 or $100. You can adjust these limits as the teenager demonstrates good judgment.
Explain the account rules to the teenager: what the daily limit is, what happens if they try to spend more, and why you are monitoring the account. Make it clear that the account is a tool for learning, not a punishment. As the teenager gets older and shows they can manage money responsibly, gradually loosen the controls and reduce monitoring.
Interest rates and fees to watch for
Teen savings accounts typically earn very little interest — often 0.01% to 0.05% annually, which means $100 in the account earns less than $1 per year. Some credit unions and online banks offer slightly higher rates, but do not expect much. The real value of a teen account is teaching the teenager how to save and spend responsibly, not building wealth.
Monthly maintenance fees range from $0 to $10, depending on the bank. Many banks waive the fee if the teenager maintains a minimum balance (often $100 to $500), keeps a direct deposit set up, or is a student. Debit card fees, if charged, are usually $5 to $10 per year. Some banks also charge overdraft fees ($25 to $35) if the teenager spends more than the account balance, though many teen accounts block overdrafts to prevent this.
Before you open the account, ask the banker to write down the monthly fee, the conditions for waiving it, any debit card fees, and the overdraft policy. Compare this information across two or three banks before deciding. A bank with no monthly fee and no minimum balance is usually the best choice for a teenager who is just starting out.
Frequently Asked Questions
Can a teenager open a savings account without a parent?
No, minors under 18 cannot open a bank account without a parent or guardian present and co-signing. The parent becomes a joint account holder or custodian, depending on the bank's account type. Once the teenager turns 18, they can open their own account independently.
What is the youngest age a teenager can open a savings account?
Most banks allow teenagers as young as 13 to open a teen savings account with parental permission. Some banks set the minimum at 16. Call your bank to confirm their age policy before you visit.
Does opening a teen savings account affect the teenager's credit score?
No, opening a savings account does not build or hurt credit. Credit scores are based on borrowing and repayment history, not savings. A savings account is a good first step before a teenager applies for a credit card or loan later.
What happens to the account when the teenager turns 18?
Most banks automatically convert a teen account to a standard adult account at age 18, and the parental controls are removed. Some banks require you to request the conversion. The teenager can then manage the account independently and add or remove the parent as an authorized user if they choose.
Can I set up automatic transfers from my account to the teenager's account?
Yes, most banks allow you to set up automatic transfers between accounts you own or co-own. You can transfer an allowance or savings match on a weekly or monthly schedule. Set this up in online banking under "Transfers" or "Bill Pay," and the money will move automatically on the date you choose.