You can open a savings account at any age, but a parent or guardian must sign for anyone under 18
Most banks and credit unions allow children to open savings accounts, but the rules depend on the child's age and the financial institution. Infants and toddlers cannot sign contracts, so a parent or legal guardian opens and controls the account on their behalf. Once a child reaches their mid-teens—usually 13 to 16, depending on the bank—they can open an account in their own name with a parent present. At 18, a young person can open an account independently without any adult involvement.
The specific age when a child can have their own account varies by bank. Some institutions set the minimum at 13; others wait until 16 or 17. A few banks have no minimum age and let parents open accounts for newborns. The account type also matters: a basic savings account for a child often has different rules than a teen checking account or a joint account.
Key Takeaways
- Parents can open savings accounts for children of any age, but the parent controls the money until the child reaches the age of majority (18 in most states).
- Most banks allow children ages 13 to 16 to open their own savings account with a parent present, though the parent remains a co-owner until age 18.
- At 18, a young person can open a savings account without parental involvement and have full control of the funds.
- Different banks set different minimum ages, so calling ahead or checking the bank's website tells you the exact age requirement before you visit.
- A custodial account or UTMA/UGMA account offers tax advantages for money saved for a child's future, though the rules are more complex than a regular savings account.
Accounts opened by a parent for a young child
When a parent opens a savings account for an infant or young child, the parent is the account owner and the child is the beneficiary. The parent has complete control: they deposit money, withdraw funds, and make all decisions about the account. The child's name appears on the account, and the account builds a record, but the child cannot access or manage it.
This setup works well for parents who want to save money for a child's future—a college fund, an emergency fund, or money for a specific goal. The parent can deposit money regularly, and the account earns interest. When the child reaches 18, the parent can transfer the account to the child's name, or the child can take control at that point depending on the bank's rules.
Most banks require only the parent's ID and Social Security number to open this type of account. Some banks ask for the child's Social Security number as well, which helps the bank report interest earned on the account to the IRS. If the child does not have a Social Security number yet, some banks will still open the account and add the number later.
Teen savings accounts: ages 13 to 17
Many banks offer teen savings accounts starting at age 13, though some begin at 16. These accounts let a young person open and manage their own savings with a parent or guardian present. The teen can deposit money from a job, allowance, or gifts, and withdraw it when needed. The parent is usually listed as a co-owner or authorized user, which means the bank can share account information with both the teen and the parent.
A teen account typically comes with a debit card, online banking access, and the ability to set up direct deposit from a job. Some banks limit the number of withdrawals per month or charge fees if the balance drops below a minimum. Interest rates on teen savings accounts are often the same as adult accounts, though some banks offer slightly higher rates to encourage young savers.
The parent's role varies by bank. Some banks require the parent to co-sign and remain a co-owner until the teen turns 18. Others let the parent be a guardian who can view the account but is not a legal owner. A few banks let the teen open the account alone at 16 or 17 if they have a job or proof of income. Call the bank or check their website to understand what role the parent plays and when the teen gains full control.
Independent accounts at age 18
At 18, a young person becomes a legal adult in most states and can open a savings account without any parent or guardian. They need only a valid ID (driver's license, passport, or state ID), a Social Security number, and an initial deposit. The account is theirs alone, and they have complete control over deposits, withdrawals, and account decisions.
Some banks offer accounts specifically for young adults ages 18 to 25, with features like no monthly fees, no minimum balance, and online-only banking to keep costs low. These accounts work the same way as any other savings account but are designed for people just starting out. After 25, the account usually converts to a standard adult account with the same terms.
Custodial and UTMA accounts: tax-advantaged options
A custodial account (also called a UTMA or UGMA account) is a special type of savings or investment account that a parent opens for a child. The parent is the custodian and controls the account, but the money legally belongs to the child. When the child reaches the age of majority—18 or 21, depending on the state and account type—the child takes full control.
The main advantage of a custodial account is the tax treatment. Money in the account is taxed in the child's name, not the parent's, which often means lower taxes because the child's tax bracket is lower. The first portion of earnings (around $1,300 per year, though this amount changes annually) is tax-free. Above that, the child pays tax at their own rate, which is usually much lower than the parent's rate.
Custodial accounts are more complex to set up than a regular savings account and may have higher fees. They also affect financial aid calculations for college, since the money is considered the child's asset. Talk to a bank or financial advisor about whether a custodial account makes sense for your situation.
What you need to bring to open an account
Banks vary in what they require, so the documents you bring depend on who is opening the account and the child's age. A parent opening an account for a young child needs their own ID and Social Security number. A teen opening their own account with a parent present needs both the teen's and parent's identification and Social Security numbers. An 18-year-old opening independently needs only a valid ID and Social Security number.
| Who is opening the account | Documents needed |
|---|---|
| Parent opening for a child under 13 | Parent's ID, parent's Social Security number, child's name and date of birth (Social Security number optional but helpful) |
| Teen ages 13–17 with parent present | Teen's ID or birth certificate, teen's Social Security number, parent's ID, parent's Social Security number |
| Young adult age 18 or older | Valid ID (driver's license, passport, or state ID), Social Security number, initial deposit (amount varies by bank) |
| Custodial account | Parent's ID and Social Security number, child's Social Security number, proof of guardianship if not the biological parent |
Some banks let you open an account online without visiting a branch, though you may need to mail in copies of ID or verify your identity through a video call. Online banks often have lower minimum deposits and simpler requirements than brick-and-mortar banks. Call ahead or check the bank's website to confirm what they need before you visit or start an online application.
Frequently Asked Questions
Can a child have their own savings account without a parent?
Not until age 18 in most cases. Before that, a parent or legal guardian must be involved—either as the account owner (for young children) or as a co-owner or authorized user (for teens). At 18, a young person can open an account independently.
What happens to a teen's account when they turn 18?
This depends on the bank. Some automatically convert the account to an adult account and remove the parent as co-owner. Others require the young adult to visit the bank and sign new paperwork. A few let the parent stay on the account if both parties agree. Contact your bank to find out their specific process.
Do I need to open a special account for a child, or can I just add them to my account?
You can add a child as an authorized user on your account at most banks, which lets them use a debit card but does not give them legal ownership. A separate account in the child's name (with you as co-owner or guardian) is better if you want to teach them about saving and managing money independently.
Will opening a savings account for my child 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 savings. A child can have a savings account from birth without any impact on credit.
Can I open a savings account for a grandchild or other relative's child?
Only if you are the legal guardian. If you are not, the child's parent or legal guardian must open the account or give you written permission. Some banks may allow a grandparent to open a custodial account, but you will need to provide proof of guardianship or a court order.