What you need to bring and who can open the account
A parent or legal guardian opens the account in the minor's name. You will need the child's Social Security number, proof of the child's identity (usually a birth certificate), and your own ID and proof of address. Some banks accept a passport or state ID for the child instead of a birth certificate. Call ahead to confirm what your bank accepts—requirements vary.
The account is owned by the minor, but you control it until they reach the age of majority in your state (usually 18, sometimes 21). You can make deposits and withdrawals, set spending limits, and monitor activity. The child's name appears on the account, and they typically receive a debit card or passbook once they are old enough to use it responsibly.
You do not need the minor present at the bank to open the account, though some banks prefer it. Online banks often allow you to open an account entirely by mail or through their website, which can be faster than a branch visit.
Key Takeaways
- You will need the minor's Social Security number, birth certificate or state ID, and your own ID and proof of address to open the account.
- The parent or legal guardian controls the account until the child reaches the age of majority, which is 18 in most states.
- Many banks offer accounts designed for minors with features like parental controls, spending limits, and educational tools about money.
- Interest rates on minor savings accounts are typically very low, so the account's main purpose is teaching money habits rather than earning returns.
- When the child turns 18 or 21, the account automatically converts to an adult account, and control transfers to them.
Choosing between a custodial account and a joint account
Banks offer two main structures. A custodial account (also called a UGMA or UTMA account in some states) is legally owned by the minor, with you as the custodian. When the child reaches the age of majority, the account becomes theirs entirely and you have no further control. A joint account is owned by both of you, and either of you can withdraw money at any time.
Custodial accounts are better if you want to teach the child that the money is theirs and will be theirs to manage as an adult. Joint accounts are simpler to set up and give you more flexibility if you need to access the money for the child's expenses. The trade-off is that a joint account can complicate things if you have multiple children or if the child later disputes how the money was used.
Most banks default to a joint account for minors because it requires fewer documents and is faster to open. Ask your bank which structure they recommend for your situation.
What to expect from interest rates and fees
Interest rates on minor savings accounts are typically between 0.01% and 0.5% per year, depending on the bank and current market rates. This means a $1,000 deposit might earn $1 to $5 per year. The rate is not the main reason to open the account—the purpose is teaching the child to save and giving them a place to put money safely.
Most banks charge no monthly maintenance fee for minor accounts, though some charge a small fee if the balance falls below a minimum (often $25 to $100). A few banks waive fees entirely for accounts opened for children under a certain age. Read the fee schedule before you open the account, because fees can erase the small interest you earn.
Some banks offer higher rates on minor accounts as a promotional tool, but these rates usually drop after a few months. If rate is your only concern, you are better off focusing on a bank with no fees and a reasonable rate, rather than chasing a temporary high rate.
Banks and credit unions that offer minor accounts
Most major banks offer savings accounts for minors, including Chase, Bank of America, Wells Fargo, and Citibank. Credit unions typically offer them as well, and often with lower fees and slightly higher rates than large banks. Online banks like Ally, Marcus, and Discover also offer minor accounts, usually with no monthly fees and the ability to open entirely online.
Some banks market accounts specifically for teens with features like parental alerts when the child makes a purchase, spending limits that you can adjust, and educational content about budgeting. These accounts are not necessary—a basic savings account works fine—but they can be useful if you want to teach the child about money management as they get older.
If you belong to a credit union, start there. Credit unions often have lower fees and more flexibility than banks, and staff can walk you through the process in person if you prefer not to do it online.
What happens when the minor turns 18
The account automatically converts to an adult account on the date the minor reaches the age of majority in your state. You no longer have legal control, though you may remain a joint owner if the account was set up as a joint account. If it was a custodial account, it becomes the child's account alone.
The bank will send you and the child notice of the conversion, usually 30 to 60 days before it happens. At that point, the child can withdraw money, close the account, or keep it open. If you were a joint owner, you can still access the account unless the child removes you.
If you want to remove yourself from the account when the child turns 18, contact the bank and ask for the process. Some banks allow the child to do this online; others require a visit to a branch or a signed form.
Setting up automatic deposits and teaching money habits
Many parents set up automatic transfers from their own account to the child's account on a regular schedule—weekly, monthly, or when the child completes a chore or earns an allowance. This teaches the child that money accumulates over time and that saving is a habit, not something you do only when you have extra cash.
Some banks allow you to set spending limits on a debit card linked to the account, so the child can make purchases but cannot spend more than you allow. This is useful for older children and teens who are learning to manage money. You can adjust the limit as they demonstrate responsibility.
Talk to the child about why you are opening the account and what you hope they will learn from it. Even young children can understand that the account is a safe place for their money and that it grows over time. As they get older, you can explain interest, fees, and the difference between saving and spending.
Frequently Asked Questions
Can I open a savings account for a minor without being the parent?
In most cases, no. Banks require the account opener to be a parent or legal guardian. If you are a grandparent, aunt, or other relative, you may be able to open a custodial account if you have legal guardianship, but you will need to show court documents proving it. Contact your bank to ask what they accept.
What if the minor already has a Social Security number but I cannot find the card?
You do not need the physical card. The bank will ask for the number, and you can provide it from memory or from a tax return, W-2, or other document that shows it. If you are unsure of the number, you can request a replacement from the Social Security Administration online or by phone.
Can the child access the account before they turn 18?
That depends on the bank and how old the child is. Most banks do not issue a debit card or allow online access until the child is at least 13 or 16. You can always make deposits and withdrawals on their behalf. Ask your bank what age they allow for independent access.
What if I want to move the account to a different bank later?
You can close the account at any time and move the money to another bank. There is no penalty for closing a savings account. The new bank will open a new account in the child's name, and you can transfer the balance by check or electronic transfer. This usually takes a few business days.
Does opening a savings account for a minor affect their credit score?
No. A savings account does not appear on a credit report and does not affect credit score. Credit scores are based on borrowing and repayment history, not on savings. The child will not have a credit score until they borrow money or are added as an authorized user on a credit card.