Yes, you can open a savings account for your child, and most banks make it straightforward

You can open a savings account in your child's name at nearly every bank and credit union in the country. The account belongs to your child, but you control it as the parent or legal guardian until they reach the age of majority—usually 18, sometimes 21 depending on your state and the bank's rules. You'll need your child's Social Security number, proof of identity for yourself, and proof of your relationship to the child. Most banks let you open the account online, by phone, or in person.

The main choice you face is whether to open a custodial account (in your child's name with you as custodian) or a joint account (both names on the account from the start). Both work, but they have different legal and tax consequences, especially if the account grows or if your family situation changes. A custodial account is more common for younger children; a joint account is simpler for teenagers who may need to make withdrawals themselves.

Key Takeaways

  • You need your child's Social Security number and your own ID to open an account; most banks accept online applications.
  • Custodial accounts are in your child's name with you as guardian, while joint accounts list both names and let either person withdraw funds.
  • Interest earned on the account may be taxable to your child, but the first $1,300 per year (as of 2024) is typically tax-free for a dependent child.
  • When your child turns 18 or 21, depending on your state and bank, the account transfers to their full control and you lose access.
  • Some banks offer teen checking accounts with parental controls, which let your child learn to manage money while you monitor spending.

Custodial accounts versus joint accounts: which one to choose

A custodial account is opened in your child's name, with you listed as the custodian. The money legally belongs to your child from day one, even though you manage it. When your child reaches the age of majority in your state (18 or 21), the account automatically becomes theirs to control, and you have no further access. This is the standard choice for young children and for money you intend as a gift or for their future.

A joint account lists both your name and your child's name on the account. Either of you can deposit or withdraw money without permission from the other. Joint accounts are simpler to set up and give your teenager the ability to make transactions on their own, but they also mean your child can legally withdraw all the money without telling you. Joint accounts also stay joint until you close them or remove one person's name—they don't automatically transfer at age 18.

For tax purposes, money in a custodial account is considered your child's income, which can matter if the account earns interest or if you're setting aside money for college financial aid. Money in a joint account is treated as belonging to whoever deposited it, unless you can prove otherwise. Talk to a tax professional if the account will hold a large amount or if you're planning to use it for college savings.

What you need to open the account

Bring or provide your child's Social Security number, your own government-issued ID (driver's license or passport), and proof that you are the parent or legal guardian—usually a birth certificate or adoption papers. Some banks also ask for a second form of ID or proof of address. If you're opening the account online, you may be able to upload photos of these documents; if you're going in person, bring the originals.

If your child is a teenager and opening a joint account, the bank may ask your child to come in person or to verify their identity online. Some banks require both of you to sign. Call ahead to ask what the bank needs; requirements vary by institution and by your child's age.

You do not need to have an existing account at the bank, though some banks offer better rates or lower minimums if you do. There is no cost to open most savings accounts for minors, though some banks charge a small monthly fee if the balance falls below a certain amount—often $25 to $100. Ask about this before you open the account.

Tax treatment of interest and earnings

Interest your child's account earns is taxable income to your child, not to you. However, the first $1,300 of unearned income (interest, dividends) per year is typically tax-free for a dependent child, as of 2024. Income above that is taxed at your child's rate, which is usually lower than yours. If your child has other income (from a job, for example), the tax-free threshold may be lower or eliminated.

This matters most if you're saving a large amount or if the account will earn significant interest. Savings accounts earn very little interest right now—often less than 0.01% at traditional banks, though some online banks offer 4% to 5%. Even at higher rates, a $5,000 account earning 4% generates only $200 per year, which is well under the tax-free threshold. But if you're putting away $50,000 or more, or if you plan to invest the money rather than keep it in savings, talk to a tax professional about the best structure.

What happens when your child turns 18 or 21

The age at which your child takes full control of a custodial account depends on your state and the bank. Most states set this at 18, but some use 21. Your bank can tell you the exact age for your state when you open the account. On that date, the account becomes your child's alone, and you lose the legal right to access it or make decisions about it. The bank will send you and your child notice before this happens, usually 30 to 60 days in advance.

If you want to keep managing the money after your child turns 18, you'll need to convert the account to a joint account or have your child add you as an authorized user. Your child can refuse. This is why it's important to teach your child about the account and how to manage money before they turn 18—so the transition is smooth and they understand what they're responsible for.

A joint account does not automatically transfer at age 18. It stays joint unless you close it or remove one person's name. This means you keep access to the account, but so does your child, and either of you can withdraw all the money without the other's permission.

Teen checking accounts with parental controls

Many banks now offer teen checking accounts designed for teenagers 13 and up. These accounts usually come with a debit card and online banking, so your teen can make purchases and check their balance. The key difference from a regular joint account is that they often include parental controls—you can set spending limits, block certain types of transactions, or require approval before large purchases. Some banks let you see every transaction in real time through an app.

Teen checking accounts are useful if your child is old enough to need their own debit card but you want to monitor their spending or prevent them from overdrawing the account. They're also a good way to teach money management before your child turns 18 and takes full control. However, not all banks offer them, and the features vary widely. Ask your bank whether they have a teen account and what controls it includes.

Where to open the account

You can open a savings account at a traditional bank, an online bank, or a credit union. Traditional banks (Bank of America, Wells Fargo, Chase, etc.) have physical branches, which can be helpful if you want to deposit cash or talk to someone in person. Online banks (Ally, Marcus, Discover) usually offer higher interest rates but no branches. Credit unions are member-owned and often have lower fees, but you have to join first and membership is usually limited to people who live or work in a certain area or belong to a certain group.

Compare interest rates, monthly fees, and minimum balance requirements across a few options. For a child's savings account, the interest rate matters less than it does for an adult account, since the balance is usually small. But a bank with no monthly fee and no minimum balance is easier to manage. If you plan to teach your child to use online banking or a debit card, make sure the bank's app is easy to use.

Frequently Asked Questions

Can I open a savings account for my child if I don't have a Social Security number?

No. Banks are required by federal law to collect a Social Security number or Individual Taxpayer Identification Number (ITIN) for tax reporting. If your child does not have a Social Security number yet, you can request one from the Social Security Administration before opening the account. The process takes a few weeks.

What if my child's other parent wants access to the account?

If the account is custodial (in your child's name only), the other parent does not have automatic access. You would need to contact the bank and ask them to add the other parent as a custodian, which usually requires both parents' consent and proof of guardianship. If the account is joint, you can ask the bank to add the other parent's name. The bank may require both of you to sign.

Can my child lose access to the money if I get into legal trouble?

In a custodial account, the money belongs to your child, not to you, so it is generally protected from your creditors or legal judgments. However, if you owe child support, some states allow the government to take money from a custodial account. In a joint account, creditors may be able to reach the funds because your name is on the account. Talk to a lawyer if you're concerned about this.

Do I need to report the account to the government?

You do not need to report the account itself, but the bank will report interest earned to the IRS on a Form 1099-INT if the interest exceeds $10 per year. If your child has earned income from a job, you may need to file a tax return for them. A tax professional can tell you whether you need to file based on your child's income and your family's situation.

Can I use my child's savings account to pay for their expenses?

Yes, you can withdraw money from a custodial account to pay for your child's needs—food, clothing, school supplies, medical care. The money is your child's, but you have the legal right to use it for their benefit while you're their guardian. However, if you withdraw money for your own personal use, that may be considered theft or misuse of funds, depending on your state. Keep the account for your child's benefit.