Yes, minors can have savings accounts, but an adult must open and manage it

A minor can hold a savings account at most banks and credit unions in the United States, but the account must be opened by a parent or legal guardian. The adult's name appears on the account alongside the minor's, and the adult has full control until the minor reaches the age of majority — usually 18, though some states set it at 19 or 21. The minor can deposit money, make withdrawals, and watch the balance grow, but they cannot open the account alone or change account terms without the adult's permission.

The specific rules depend on the financial institution and your state. Some banks allow minors as young as 13 to use a debit card tied to the account; others require the minor to be older. A few institutions offer accounts designed specifically for teens that include spending controls and financial education tools. The interest rate on the savings portion is typically very low — often less than 0.01% annually — but the account still builds the habit of saving and keeps money separate from a parent's personal funds.

Key Takeaways

  • A parent or legal guardian must open the account and remain the primary account holder until the minor reaches the age of majority in your state.
  • Most banks allow minors to have debit cards and make withdrawals, though some set age minimums of 13 or older for card access.
  • The adult on the account has full legal control and can withdraw money, close the account, or change terms at any time.
  • Interest rates on minor savings accounts are typically very low, but the account teaches saving habits and keeps money legally separate from parental funds.
  • When the minor reaches the age of majority, the account can be converted to a standard adult account without closing it or moving the money.

Types of accounts available for minors

Most banks offer a standard custodial savings account, which is simply a regular savings account with a parent or guardian listed as the custodian. The minor's name appears on the account, and the adult can add the minor as an authorized user on a debit card. The adult retains legal ownership and control.

Some financial institutions offer teen checking accounts or teen savings accounts designed specifically for younger customers. These often include features like spending limits set by the parent, alerts when the balance drops below a certain amount, and educational resources about money management. Banks like Chase, Bank of America, and Wells Fargo have teen account products; credit unions often have similar offerings. The features and age requirements vary — some start at age 13, others at 16.

A few banks also offer 529 college savings plans that function as investment accounts rather than savings accounts. These are designed to grow money for education expenses and have tax advantages, but the money is restricted to education use. A parent opens and controls the account, and the minor is named as the beneficiary.

What you need to open an account for a minor

The parent or guardian will need to bring a government-issued photo ID, proof of address (usually a recent utility bill or lease), and the minor's Social Security number. Some banks also require the minor to be present in person; others allow the account to be opened online or by mail if the parent provides the minor's information. Call ahead to confirm what your specific bank requires, because rules differ between institutions.

If you are opening the account at a credit union rather than a bank, you may also need to become a member of the credit union first. This usually requires a small deposit and takes a few minutes. Credit unions often have lower fees and higher interest rates than banks, though the difference is usually small on savings accounts.

Debit cards and spending controls for minors

Most banks allow minors to have a debit card linked to the account once they reach a certain age — commonly 13, though some institutions set the minimum at 16. The parent can usually set daily spending limits through the bank's app or website, so the minor cannot spend more than the parent allows. Some banks also let the parent turn the card on or off remotely.

The debit card teaches the minor how to use plastic money and make purchases independently, while the parent maintains oversight. The minor can withdraw cash from ATMs and make purchases at stores, but cannot overdraft the account or spend money that is not there. If the card is lost or stolen, the parent can report it and request a replacement, just as with an adult debit card.

When the minor turns 18 or reaches the age of majority

At the age of majority in your state — 18 in most places, but 19 or 21 in a few — the account can be converted to a standard adult account. The parent's name can be removed, and the young adult takes full control. No money needs to move, and the account number usually stays the same. The bank will send paperwork to both the parent and the young adult explaining the conversion process.

Some banks require the young adult to visit a branch in person to complete the conversion; others handle it by mail or online. If the parent and young adult disagree about removing the parent's name, the bank will follow the young adult's wishes once they reach the age of majority, because the young adult is now a legal adult. The parent can no longer access the account or make decisions about it without the young adult's permission.

Interest rates and fees on minor accounts

Interest rates on minor savings accounts are typically very low — often between 0.01% and 0.05% annually. This means a minor with $1,000 in the account might earn less than $1 per year in interest. The rate depends on the bank or credit union and changes over time as national interest rates rise and fall. Credit unions sometimes offer slightly higher rates than large banks, but the difference is usually small.

Many banks charge no monthly fees on minor accounts, especially if the account is linked to a parent's account at the same institution. Some charge a small fee if the balance drops below a minimum amount, usually $25 to $100. Read the account agreement or ask the bank directly about fees before opening the account, because they vary widely.

How to teach a minor to save using the account

A savings account gives a minor a concrete place to watch money accumulate and learn the difference between spending and saving. Some parents deposit a portion of the minor's allowance or earnings into the account each week or month, while the minor keeps some cash for immediate spending. Others set a goal — like saving for a bicycle or video game — and help the minor track progress toward it.

The debit card can teach spending decisions if the parent sets a monthly allowance and lets the minor decide how to use it. When the card balance runs low, the minor learns that money spent is money gone. Some banks also send notifications when the balance drops, which reinforces the connection between spending and the account balance.

Frequently Asked Questions

Can a minor open a savings account without a parent or guardian?

No. Federal law requires a parent or legal guardian to open the account and remain on it as the custodian. A minor cannot open an account alone at any bank or credit union in the United States.

What happens to the account if the parent dies?

The account does not close automatically. The minor's other parent, a legal guardian, or the executor of the deceased parent's estate can take control of the account. Contact the bank with a death certificate and proof of guardianship or inheritance authority to update the account holder.

Can a minor have more than one savings account?

Yes. A minor can have accounts at multiple banks or credit unions, each opened by a parent or guardian. Some families open accounts at different institutions to separate money for different goals — one for college savings, one for everyday spending, one for a specific purchase.

Does a minor's savings account affect their Social Security benefits or government programs?

It may, depending on the program. Some means-tested benefits like Supplemental Security Income (SSI) count savings toward resource limits. If the minor receives SSI or other need-based benefits, check with the program administrator before opening a large savings account, or ask about setting up a special needs trust instead.

Can the parent withdraw money from the minor's account without permission?

Yes. Because the parent is the legal account holder, they have the right to withdraw money at any time. However, money deposited into the account as a gift to the minor — such as birthday money from relatives — is legally the minor's property, and some parents treat it as off-limits to preserve trust.