Yes, minors can have bank accounts, but the rules depend on the child's age and the bank

Children as young as infants can have bank accounts in the United States. However, the account structure and who controls the money changes based on age. A child under 18 cannot legally sign a contract or open an account alone, so a parent or guardian must open it with them or for them. The bank decides the minimum age at which a child can be added to an account, and this varies by institution — some allow accounts from birth, others from age 13 or older.

The two main account types for minors are custodial accounts (where a parent controls the money until the child reaches a set age, usually 18 or 21) and joint accounts (where both parent and child have access and can make withdrawals). Some banks also offer teen checking accounts designed specifically for teenagers, which may include debit cards and limited online access.

Key Takeaways

  • A parent or guardian must open any account for a child under 18, either as a custodial account they control or a joint account both can use.
  • Custodial accounts transfer to the child automatically at age 18 or 21 (depending on state law and the account type), and the parent loses control at that point.
  • Joint accounts let a child access money immediately and learn to manage it, but the parent can also withdraw funds at any time.
  • Many banks offer teen checking accounts with debit cards starting around age 13, though some require parental co-ownership.
  • The child's Social Security number is required to open any account, and the parent's information will also be on file.

Custodial accounts: the parent controls the money until the child turns 18 or 21

A custodial account is opened in the child's name but managed entirely by the parent or guardian until the child reaches the age of majority. The account is registered under the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA), depending on your state. The parent can deposit money, withdraw money, and make decisions about how the account is used — the child cannot touch the funds or make withdrawals without permission.

When the child turns 18 or 21 (the age varies by state and account type), the account automatically transfers to the child's full control. At that point, the parent has no further say in how the money is used. This structure is useful for parents who want to save money for a child's future without the child being able to spend it before reaching adulthood. Custodial accounts are common for savings accounts, but some banks also offer custodial checking accounts.

One important detail: money in a custodial account is considered the child's asset for financial aid purposes. If the child later applies for federal student aid, the account balance will be counted as their resource, which can reduce the amount of aid they receive.

Joint accounts: both parent and child can access the money

A joint account is opened in both the parent's and child's names, and both can make deposits and withdrawals. The child can use a debit card to spend money, check the balance, and learn to manage money in real time. The parent retains full access and can withdraw funds at any time, which means the account is not truly the child's alone — it is a shared resource.

Joint accounts are often used when parents want to give a child spending money or teach them how to use a bank account before they turn 18. A teenager with a joint checking account can practice budgeting, see how transactions work, and build familiarity with banking. However, because the parent remains on the account, the child does not have privacy — the parent can see all transactions and balances.

When the child turns 18, the account does not automatically transfer. The parent remains on the account unless they choose to remove themselves. This means the parent can continue to monitor the account or co-manage it, or they can step back and let the young adult take full control. The choice is up to both parties.

Teen checking accounts with debit cards

Many banks offer checking accounts specifically designed for teenagers, usually starting at age 13. These accounts typically come with a debit card, online banking access, and sometimes mobile app features. The account is usually set up as a joint account with a parent, so the parent can monitor spending and set limits if the bank's system allows it.

Teen checking accounts vary widely by bank. Some allow the teen to set up direct deposit for paychecks or allowance, others include tools to track spending, and some offer parental controls that let the parent approve or deny certain transactions. A few banks charge a monthly fee for teen accounts, while others waive fees for accounts under a certain balance or with regular deposits. Check with your bank about what features and costs apply to their teen account option.

The debit card that comes with a teen checking account is not a credit card — it draws directly from the account balance. This means the teen cannot spend more than what is in the account, which is a built-in safeguard against overspending.

What you need to open an account for a minor

To open any account for a child, you will need the child's Social Security number and proof of identity for both the child and the parent or guardian. Acceptable proof of identity usually includes a birth certificate for the child and a government-issued ID (driver's license, passport, or state ID) for the parent. Some banks may also ask for proof of address, such as a utility bill or lease.

You can open an account in person at a bank branch or, at some banks, online. If you open it online, you may need to verify identity through a video call or by uploading documents. The process typically takes a few minutes to a few hours, depending on the bank and method. Once the account is open, you can usually start using it immediately, though some banks place a hold on deposits for a day or two.

If the account includes a debit card, the card usually arrives in the mail within 7 to 10 business days. Some banks offer temporary digital card numbers that can be used online or in stores before the physical card arrives.

Age limits and when a child can open their own account

A child cannot legally open a bank account on their own until they turn 18 in most states. At 18, a young adult can walk into a bank and open an account without a parent's signature or involvement. However, some banks may still require proof of income or a minimum deposit, depending on their policies.

Before age 18, the parent or guardian must be involved. Some banks allow children as young as 13 to have a teen checking account with a debit card, but the parent must co-sign or be listed on the account. A few banks have no minimum age for savings accounts and will open them for infants, as long as a parent is the account holder.

Once a child turns 18, they can request to be removed from a joint account and open their own account independently. If the account is custodial, it automatically becomes theirs to control at the age specified in the account agreement (usually 18 or 21).

How to teach a child about money using a bank account

A bank account is a practical tool for teaching children about saving, spending, and how money works. For younger children (under 13), a custodial savings account lets them see deposits grow over time, even if they cannot access the money. For teenagers, a joint checking account or teen account with a debit card provides hands-on experience with real transactions.

Consider setting up regular deposits — such as allowance or earnings from chores — so the child sees money going in and out. Some parents use the account to teach budgeting by giving the child a set amount each month and letting them decide how to spend it. Others use it to show the difference between saving and spending by letting the child watch their balance change.

Many banks offer educational resources for teens, including videos about budgeting and banking basics. Some also offer parental controls or spending alerts, which can help you guide the teen's learning without taking over completely.

Frequently Asked Questions

Can a child have a bank account without a parent?

No, not until age 18. Children under 18 cannot sign a legal contract, so a parent or guardian must open the account and be listed on it. At 18, a young adult can open an account independently.

What happens to a custodial account when the child turns 18?

The account automatically transfers to the child's full control. The parent loses access and can no longer make decisions about the money. The child can then withdraw, spend, or manage the account however they choose.

Can a parent withdraw money from a child's account?

Yes, if it is a joint account or custodial account. In a joint account, both the parent and child can withdraw at any time. In a custodial account, only the parent can withdraw until the child reaches the age of majority. Once the child turns 18 or 21, the parent can no longer access custodial account funds.

Do I need to pay taxes on money in a child's savings account?

Interest earned in the account is taxable income for the child. However, the amount of tax owed depends on how much interest is earned. For 2024, a child with less than $1,300 in interest income typically does not owe federal income tax, though this threshold changes yearly. Check current IRS rules or consult a tax professional for your specific situation.

Can a teenager get a credit card instead of a debit card?

Not on their own. A teenager under 18 cannot get a credit card without a parent as a co-signer. Some banks offer teen credit cards with parental co-signature, but these are less common than teen debit cards. A debit card is the standard option for teenagers learning to manage money.