What You Need to Open a Savings Account for a Minor
A parent or legal guardian must open the account in person at a bank or credit union. You cannot open a minor's account online or by mail — the institution needs to verify the adult's identity and see the minor in person, or in some cases see proof of the minor's identity. Bring a government-issued ID for yourself (driver's license, passport, or state ID) and either a birth certificate or Social Security card for the child.
Different banks have different rules about the minimum age. Most banks allow accounts for children as young as newborns if a parent or guardian is the account holder. Some credit unions set the minimum at age 13 or 16 for certain account types. Call ahead or check the bank's website to confirm their age requirement before you go in.
You will also need to decide whether you want a custodial account (where you control the money until the child reaches the age of majority, usually 18 or 21) or a joint account (where both you and the child can withdraw money). Most parents choose custodial for younger children and switch to joint accounts as the child gets older.
Key Takeaways
- A parent or legal guardian must open the account in person with a government ID and the child's birth certificate or Social Security card.
- Most banks allow accounts for newborns, but some credit unions have minimum age requirements of 13 or 16.
- Custodial accounts give you full control until the child reaches age 18 or 21; joint accounts let the child withdraw money anytime.
- Monthly fees, minimum balance requirements, and interest rates vary widely, so compare options before choosing a bank.
- Once the account is open, you can set up automatic transfers or teach the child to deposit money themselves.
Custodial Accounts vs. Joint Accounts
A custodial account is held in your name as the custodian, with the child's Social Security number linked to it. You have complete control over deposits and withdrawals. The money belongs to the child legally, but you decide when and how it is spent. When the child reaches the age of majority (18 in most states, 21 in a few), the account automatically transfers to their control. This is the safest option for young children because you can prevent them from spending the money impulsively.
A joint account lists both you and the child as owners. Both of you can deposit and withdraw money without permission from the other. Joint accounts work well for teenagers who are learning to manage money and need access to their own funds. The downside is that the child can empty the account without your knowledge. Some banks let you set withdrawal limits or require both signatures for large transactions, but not all do.
You can also open a custodial account and later convert it to a joint account when the child is older and more responsible. Ask the bank whether conversion is free and how the process works.
Where to Open the Account
Banks and credit unions both offer savings accounts for minors. Banks are more widely available and often have more branches, making deposits and withdrawals easier. Credit unions sometimes offer better interest rates and lower fees, but you must be a member to open an account — membership usually requires living or working in a specific area or belonging to a certain group.
Online banks (banks with no physical branches) typically do not allow you to open a minor's account online, but some let you start the process online and finish in person at a partner bank. Call the online bank to ask about their process before you assume you cannot use them.
Compare fees, minimum balance requirements, and interest rates across at least two or three institutions. Some banks charge monthly maintenance fees ($5 to $15) while others waive fees for minors. Interest rates on savings accounts are currently low across the industry (usually under 0.5% annually), but they vary slightly from bank to bank.
Documents You Will Need to Bring
| Document | For Whom | Acceptable Forms |
|---|---|---|
| Government-issued ID | Parent or guardian | Driver's license, passport, state ID, military ID |
| Proof of child's identity | Minor | Birth certificate, Social Security card, passport, state ID (if the child has one) |
| Proof of address (optional) | Parent or guardian | Utility bill, lease, mortgage statement, or bank statement dated within the last 60 days |
| Guardianship papers (if applicable) | Legal guardian | Court order or custody agreement if you are not the biological parent |
Some banks ask for proof of address even though they already have your ID. Bring a recent utility bill or lease just in case. If you are the legal guardian but not the biological parent, bring the guardianship paperwork — the bank will need to see it to confirm you have the authority to open the account.
What Happens After You Open the Account
The bank will issue a debit card in the child's name (or yours, depending on the account type) and provide online banking access. You can set up automatic transfers from your checking account to the child's savings account, or the child can deposit money themselves at an ATM or in person. Some banks let you set up parental controls that limit how much the child can withdraw per day or per transaction.
If you open a custodial account, the bank will send you statements showing all activity. When the child turns 18 or 21 (depending on your state), the account will convert to a regular account in the child's name alone. The bank will notify you before this happens. At that point, the child has full control and you no longer see the statements unless they give you permission.
Teach the child how to check their balance online or at an ATM, and explain how interest works (money the bank pays you for letting them hold your money). Even small interest payments help children understand that saving has a reward.
Special Considerations for Teens
If the teenager is 16 or older, some banks offer accounts with a debit card and online banking that give the teen more independence while you still have oversight. These accounts often come with parental controls that let you set spending limits or receive alerts when the card is used. Ask the bank what features are available for your child's age.
Some teenagers also benefit from opening a checking account alongside the savings account once they start earning money from a job. A checking account lets them deposit paychecks and pay for everyday expenses, while the savings account teaches them to set money aside. Many banks offer bundled teen accounts that include both.
Frequently Asked Questions
Can I open a savings account for a newborn?
Yes, most banks allow you to open a custodial account for a newborn. You will need the baby's Social Security number and birth certificate. A newborn account is useful for setting aside money for the child's future or depositing gifts from relatives.
What if I do not have a Social Security number for the child yet?
You can apply for a Social Security number at the hospital when the baby is born, or at your local Social Security office. The bank will not open the account without one, so get the number first. The process usually takes a few weeks.
Can the child's other parent withdraw money from the account?
Only if their name is on the account as a joint owner or co-custodian. If only you are listed, the other parent cannot access the money without your permission. Discuss this with the other parent before opening the account to avoid conflict later.
What happens to the account when the child turns 18?
A custodial account automatically converts to a regular account in the child's name. You lose access to the account and statements unless the child gives you permission. The child can then withdraw all the money, close the account, or keep saving.
Are there tax implications for a minor's savings account?
If the account earns more than a small amount of interest (the threshold changes yearly, but is usually around $1,200), the child may need to file a tax return. The bank will send you a form showing how much interest was earned. Talk to a tax professional if you are unsure whether a return is needed.