Yes, a 13-year-old can have a bank account, but it requires a parent or guardian to co-own it
A 13-year-old cannot open a bank account alone. Banks require account holders to be at least 18 years old to sign contracts independently. However, most banks offer custodial accounts or minor accounts where a parent or legal guardian opens and controls the account while the teenager uses it. The adult's name appears on the account alongside the teen's, and the adult has full access and decision-making power until the teen reaches the age of majority (usually 18 or 21, depending on the state and bank).
The account works like a regular checking or savings account. The 13-year-old can deposit money, make withdrawals at ATMs, use a debit card, and check their balance online. Some banks let the teen set up direct deposit for allowance or earnings from a job. The parent or guardian can monitor spending, set limits on debit card use, and teach the teen about managing money.
Key Takeaways
- A parent or guardian must open the account and remain the co-owner until the teen turns 18 or 21, depending on state law and the bank.
- Most major banks and credit unions offer custodial accounts with debit cards, online access, and ATM withdrawal for teenagers.
- The teen can use the account to receive allowance, paychecks from a job, or money from family members, and to learn spending habits.
- Some accounts charge monthly fees or require a minimum balance, so compare options before opening.
- The account automatically converts to a standard adult account once the teen reaches the age of majority, without closing or reapplying.
What banks require to open a custodial account
The parent or guardian will need to bring a government-issued photo ID, proof of address (a recent utility bill or lease), and the teen's Social Security number. Some banks also ask for the teen's birth certificate. The adult must be present in person at the bank branch to sign the account paperwork; most banks do not allow online-only opening of custodial accounts, though this is changing at some institutions.
The teen does not need to be present at the branch to open the account, though some banks prefer it. If the teen does attend, they may be asked to sign the account agreement as well. After the account opens, the bank will mail a debit card and checks (if applicable) to the address on file, usually within 5 to 10 business days.
Debit cards and spending controls for teens
Most custodial accounts come with a debit card in the teen's name. The parent can often set daily spending limits, block certain types of purchases (like online transactions or gas stations), or turn the card on and off through the bank's mobile app. These controls let the parent supervise spending without having to approve every transaction.
The teen can use the debit card to buy items in stores, online, or at ATMs. Transactions typically post within one to three business days. The parent can see all transactions in the online account and set up alerts for large purchases or low balances. Some banks also offer a separate teen app that shows the teen their balance and recent activity.
Banks and credit unions that offer custodial accounts
Nearly all major banks offer custodial checking or savings accounts. Chase, Bank of America, Wells Fargo, and Citibank all have teen account options. Credit unions often have custodial accounts as well, and some credit unions charge lower fees than banks. Online banks like Ally and Charles Schwab also offer custodial accounts, though opening one may require a video call with a parent rather than an in-person visit.
Account features and fees vary. Some banks charge a monthly maintenance fee ($5 to $15), while others waive the fee if the account maintains a minimum balance or if the parent has another account at the bank. A few banks offer no-fee teen accounts. Before opening an account, compare the monthly cost, ATM network access, debit card features, and whether the bank offers spending controls through its app.
Savings accounts versus checking accounts for teens
A custodial savings account is designed to hold money and earn interest. It typically has limited withdrawal options (often six per month without penalty) and no debit card. A custodial checking account allows unlimited deposits and withdrawals, comes with a debit card, and may earn little to no interest. Some teens have both: a checking account for everyday spending and a savings account for money they want to keep.
Interest rates on teen savings accounts are usually low—often 0.01% to 0.05% annually, though some online banks offer higher rates (0.4% to 0.5%). The interest earned on a teen's account is taxable income, but the amount is usually small enough that it does not trigger a tax filing requirement. The parent receives a 1099-INT form from the bank if interest exceeds $10 in a year.
What happens when the teen turns 18 or 21
When the teen reaches the age of majority (18 in most states, 21 in a few), the custodial account automatically converts to a standard adult account. The parent's name is removed, and the now-adult account holder has sole control. The teen does not need to close the account and reopen it; the conversion happens automatically, and the account number and debit card usually remain the same.
Before the conversion, the parent should discuss what will happen next. The teen will have full access to all account features and can make all decisions without the parent's input. If the parent wants to monitor the account after the teen turns 18, they can only do so if the teen gives them permission and adds them as an authorized user.
Teaching money skills through a teen bank account
A custodial account is a tool for learning. The teen can see how deposits and withdrawals work, understand that spending reduces the balance, and practice budgeting with real money. Some parents use the account to teach the teen about earning money—for example, by depositing allowance or paying the teen for chores and letting them decide how to spend or save it.
The parent can use the account's transaction history to discuss spending habits. For example, if the teen spends all their money on snacks in the first week, the parent can talk about priorities and saving for larger goals. Some banks offer educational resources or apps designed to help teens learn about money management, budgeting, and saving.
Frequently Asked Questions
Can a 13-year-old open a bank account without a parent?
No. Banks require the account holder to be at least 18 years old to sign contracts independently. A parent or legal guardian must open and co-own the account. If the teen's parents are unavailable, a legal guardian (such as a grandparent or aunt) can open the account instead.
Can a 13-year-old get a credit card?
No. Credit cards require the holder to be at least 18 years old. A debit card linked to a custodial checking account is the closest option for a 13-year-old. A debit card draws from money already in the account, so the teen cannot spend more than they have.
Do custodial accounts cost money?
Some do, some do not. Monthly maintenance fees range from $0 to $15, depending on the bank. Many banks waive the fee if the account maintains a minimum balance (often $100 to $500) or if the parent has another account at the bank. Compare fees before opening an account.
Can the parent see all the teen's transactions?
Yes. The parent has full access to the account and can see all deposits, withdrawals, and debit card purchases. The parent can also set up alerts for large transactions or low balances. Once the teen turns 18, the parent can no longer see transactions unless the teen gives them permission.
What if the teen loses the debit card?
Contact the bank immediately to report the card lost or stolen. The bank will freeze the card to prevent unauthorized use and mail a replacement card, usually within 5 to 10 business days. Most banks do not charge a fee for a replacement card. In the meantime, the teen can withdraw cash at an ATM using their PIN or visit a branch to make withdrawals.