You can open a savings account for someone else, but the rules depend on their age and whether they consent
Yes, you can open a savings account in someone else's name, but the bank will require their permission and involvement in most cases. The specific rules depend on whether the person is a minor, an adult, or someone you have legal authority over. Banks treat accounts differently based on who owns the money, who can withdraw it, and who is legally responsible if something goes wrong.
If you want to open an account for a child, you can do it as a parent or guardian without the child's signature. If you want to open an account for an adult who is unable to manage their own finances, you will need legal documentation like power of attorney or guardianship papers. If you simply want to open an account for an adult who is capable but not present, most banks will not allow it — the account holder must sign documents themselves.
Key Takeaways
- Parents and legal guardians can open custodial savings accounts for minors without the child's signature, though the child becomes the account owner.
- For an adult who cannot manage their own finances, you will need a power of attorney document or court-ordered guardianship before a bank will let you open an account in their name.
- Banks require the account holder to sign documents in person or electronically, so you cannot open an account for a capable adult without their direct involvement.
- Joint accounts and accounts with transfer authority let you manage money for someone else without opening an account solely in their name.
Opening a savings account for a child
If you are a parent or legal guardian, you can open a custodial savings account for a minor at most banks. You will need to bring your ID, proof of the child's Social Security number, and proof of your relationship to the child (birth certificate, adoption papers, or guardianship order). The child does not need to be present, and they do not sign anything.
The account is legally owned by the child, but you control it until they reach the age of majority — usually 18 or 21, depending on your state and the bank. You can deposit money, withdraw money, and manage the account on their behalf. When the child turns 18 or 21, the account transfers to their control, and you lose the right to withdraw funds without their permission.
Some banks call these accounts UTMA or UGMA accounts (Uniform Transfers to Minors Act or Uniform Gifts to Minors Act). These are tax-advantaged in some cases, but they have restrictions on how the money can be used and what happens when the child becomes an adult. Ask your bank whether they offer custodial accounts and what the rules are at that specific institution.
Opening an account for an adult with legal authority documents
If you have a power of attorney document signed by an adult, you can open a savings account in their name. Power of attorney means the person has given you legal authority to manage their finances. You will need to bring the original power of attorney document to the bank, along with your ID and the account holder's ID.
The account is still in the other person's name, but you have the legal right to deposit, withdraw, and manage it. This is different from a joint account because the person does not have to be present to sign. Power of attorney is commonly used when someone is elderly, ill, or temporarily unable to handle their own finances.
If someone is under court-ordered guardianship, you can also open an account using the guardianship papers instead of power of attorney. Bring the court order, your ID, and the ward's ID. The process is similar, but guardianship is a more formal legal arrangement and gives you broader authority over the person's finances.
Why banks will not let you open an account for a capable adult without their involvement
Banks have strict rules about who can sign account documents. If you try to open an account for an adult who is capable of managing their own finances, the bank will require that person to sign the paperwork themselves — either in person at a branch or electronically online. This is a legal requirement, not a bank preference.
The reason is that the account holder is responsible for the account's terms, fees, and any overdrafts. Banks need proof that the person actually agreed to those terms. If you could open an account for someone without their knowledge, they could be held liable for fees or overdrafts they never authorized. Federal banking regulations and state laws prevent this.
Even if you have the person's permission, you still cannot sign for them. They must sign themselves. If the person is unable to visit a branch, many banks offer remote account opening through video call or electronic signature, but the account holder must participate.
Joint accounts as an alternative to opening an account in someone else's name
If you want to manage money for someone else and they are capable of banking, a joint account is often simpler than opening an account solely in their name. Both of you are account owners, both can deposit and withdraw, and both have equal rights to the money. You can set this up together at any bank in minutes.
Joint accounts do not require power of attorney or guardianship documents. Both account holders just need to show up with ID and sign together. This works well for spouses, adult children helping aging parents, or any situation where both people want access to the same money.
The downside is that a joint account holder can withdraw all the money without your permission. If you want to give someone access to your money but keep control, a joint account is not the right tool. In that case, you would need power of attorney or a different arrangement.
Accounts with transfer authority or authorized users
Some banks offer authorized user or transfer authority arrangements that let you give someone limited access to your account without making them a joint owner. You remain the account owner, but the other person can withdraw money or make transfers up to a limit you set.
This is different from opening an account in their name — the account stays in your name, and you keep full control. The other person just has permission to use it. This works well if you want to give a family member access to money for emergencies or regular expenses without giving them full ownership.
Not all banks offer this option, and the rules vary. Ask your bank what options they have for giving someone limited access to your account without making them a joint owner.
What happens if you try to open an account without the person's knowledge
If you open an account in someone else's name without their permission, you are committing fraud. Banks verify identity and require the account holder's signature or electronic consent. If you forge a signature or use someone's information without permission, you can face criminal charges for identity theft or fraud.
Even if you have good intentions — such as saving money for someone as a surprise — opening an account without their knowledge is illegal. The right approach is to open an account in your own name, or to involve the other person in the process if they are capable of banking.
If you are concerned about someone's finances and they are not capable of managing them, the legal path is to pursue power of attorney or guardianship through the court system, not to open accounts secretly.
Frequently Asked Questions
Can I open a savings account for my grandchild without their parent's permission?
No. If the grandchild is a minor, you need to be the legal parent or guardian to open a custodial account. If you are not the guardian, the parent must be present or give written consent. If the grandchild is an adult, they must be involved in opening the account themselves.
What if the person I want to open an account for is out of the country?
Many banks offer remote account opening through video call or electronic signature, so the person does not have to be physically present. However, they still must participate — you cannot complete the process without them. Ask your bank whether they offer remote opening and what documents they need.
Can I open a savings account for someone on disability benefits?
Yes, if they are capable of managing their own finances, they can open an account themselves with your help. If they are not capable, you would need power of attorney or guardianship. Some banks also offer representative payee arrangements for Social Security benefits, which is different from opening a savings account.
If I open a joint account with someone, can they take all the money without telling me?
Yes. In a joint account, both owners have equal rights to all the money. Either person can withdraw the entire balance without permission from the other. If you want to prevent this, a joint account is not the right tool — you would need a different arrangement like authorized user status or power of attorney.
Do I need a lawyer to get power of attorney so I can open an account for someone?
You do not need a lawyer, but it is often helpful. Power of attorney documents vary by state, and a lawyer can make sure the document is valid and covers what you need. Some states offer free or low-cost power of attorney forms through the court system or legal aid organizations.