Yes, children can have bank accounts, but the account type and rules depend on the child's age
A child of any age can have a bank account. For infants and young children, a parent or guardian opens a custodial account in the child's name, with the adult as the custodian. The child owns the money; the parent manages it. Once a child reaches their teens—usually 13 or older, depending on the bank—they can open their own account with a parent as a co-owner or signer. By 18, most children can open an account entirely on their own.
The bank you choose matters because different banks set different age minimums and rules. Some banks let children as young as 13 open a teen checking account. Others require a parent to co-sign until age 18. A few banks have no minimum age for custodial accounts; others require the child to be at least one year old. You will need to call or visit the bank's website to find out what they offer.
Key Takeaways
- Custodial accounts let you open a bank account for a child of any age, with you as the manager until they reach adulthood.
- Teen checking accounts typically open at age 13 and let teenagers manage their own money with parental oversight.
- At 18, most children can open a standard adult account without a parent's involvement.
- The bank you choose sets the age rules, so compare what different banks offer before opening an account.
- Custodial accounts transfer to the child's full control at age 18 or 21, depending on state law and the bank.
Custodial accounts for young children
A custodial account is a savings or checking account opened in a child's name with a parent or guardian as the custodian. The child is the legal owner of the money. The parent controls the account until the child reaches the age of majority—18 in most states, 21 in a few. At that point, the account becomes the child's to manage alone.
Custodial accounts work well for holding money a child receives: birthday gifts, inheritance, money from a relative, or earnings from chores. The money stays in the child's name for tax purposes, but you decide when and how it gets spent. Some parents use custodial accounts to teach children about saving; others use them simply as a safe place to hold money until the child is old enough to manage it.
Most banks offer custodial savings accounts with no minimum balance and low or no monthly fees. Some also offer custodial checking accounts, though these are less common. You will need to bring the child's Social Security number and proof of your relationship (birth certificate or adoption papers) when you open the account. The bank will also ask for your ID and proof of address.
Teen checking accounts for ages 13 and up
Once a child reaches their early teens, many banks offer teen checking accounts that let the young person manage their own debit card and check writing, with a parent as a co-owner or monitor. The parent can usually see all transactions and set spending limits. Some banks let parents approve or block individual purchases; others only let parents set a daily spending cap.
Teen accounts typically come with a debit card, online banking access, and sometimes a checkbook. Monthly fees are usually low or waived. Some banks offer no overdraft protection on teen accounts, meaning a purchase will be declined if there is not enough money—a useful safety feature. Others allow overdrafts but charge a fee, so check the bank's policy before opening.
The age at which a teen can open this type of account varies. Chase, Bank of America, and Wells Fargo generally allow accounts at 13 with a parent co-signer. Some credit unions and smaller banks have different age minimums, so call ahead. You will need to bring both your ID and the teen's ID (or birth certificate if they do not have an ID yet), plus proof of address.
What happens when a child turns 18
At 18, a child becomes a legal adult and can open a bank account on their own without a parent's involvement. However, if they already have a custodial or teen account, the bank does not automatically convert it. You and your child will need to decide what to do with the existing account.
Some banks automatically convert a teen account to a standard adult account on the child's 18th birthday. Others require you to visit the branch or call to request the conversion. A custodial account typically converts to the child's sole ownership at 18, though a few states and banks delay this until 21. Check with your bank about their specific policy so there are no surprises.
If your child wants to move their money to a different bank or open a new account elsewhere, they can do so at 18 without your permission. This is a good time to have a conversation about where they want to bank and why, especially if they are leaving home for college or work.
How to open a custodial account
To open a custodial account, visit a bank branch or go online to the bank's website. You will need:
- Your government-issued ID (driver's license, passport, or state ID)
- Proof of your current address (utility bill, lease, or mortgage statement dated within the last 60 days)
- The child's Social Security number
- Proof of your relationship to the child (birth certificate, adoption papers, or court order naming you as guardian)
Some banks let you open a custodial account entirely online; others require you to visit a branch in person. If you open online, you may need to upload photos of your documents or visit a branch later to verify your identity. The process usually takes a few minutes to a few hours, depending on the bank.
Once the account is open, you can deposit money immediately. Most banks offer online banking so you can check the balance and see transactions anytime. You can set up automatic transfers from your own account if you want to deposit money regularly—for example, to save birthday money or allowance.
How to open a teen account
To open a teen checking account, you and your teenager will typically need to visit a bank branch together, though some banks now allow online applications. Bring:
- Your government-issued ID and proof of address
- The teen's ID (driver's license, school ID, or state ID) or birth certificate
- The teen's Social Security number
The bank will ask the teen questions to confirm their identity and may ask you to sign paperwork authorizing you as a co-owner or monitor. Some banks let you set up parental controls online after the account opens; others do this in the branch. Ask the bank to show you exactly what you will be able to see and control before you leave.
The teen will receive a debit card in the mail within 7 to 10 business days. Online banking access usually activates immediately or within a day. Make sure your teen knows how to use the debit card, check their balance, and report a lost or stolen card to the bank.
Fees and features to compare
Not all teen and custodial accounts are the same. Before opening an account, compare these features across banks:
| Feature | What to Look For |
|---|---|
| Monthly maintenance fee | Many banks waive fees for accounts under $500 or if a parent has an account at the same bank. Some charge $5 to $10 per month. |
| Minimum balance | Some accounts have no minimum. Others require $25 to $100 to open or to avoid a fee. |
| Overdraft protection | Check whether the bank allows overdrafts (and charges a fee) or declines transactions when the balance is too low. |
| Parental controls | Can you see all transactions? Set spending limits? Approve purchases? These vary widely by bank. |
| ATM access | Does the bank have ATMs near you? Do they charge a fee to use another bank's ATM? |
| Interest on savings | Custodial savings accounts may earn interest. Rates vary from nearly 0% to 4% or higher, depending on the bank and market conditions. |
Call or visit the bank's website to get current information about fees and features. Banks change their policies, so what was true last year may not be true now.
Frequently Asked Questions
Can I open a bank account for a newborn?
Yes. Most banks allow custodial accounts for children of any age, including infants. You will need the child's Social Security number and proof of your relationship. Some banks require the child to be at least one year old, so call ahead to confirm.
What is the difference between a custodial account and a teen account?
A custodial account is opened by a parent in the child's name; the child does not manage it. A teen account is opened by a parent and teen together, and the teen gets a debit card and online access to manage their own money, with the parent watching. Teen accounts are for older children who are ready to learn to handle money themselves.
Does money in a child's bank account count against financial aid?
Yes. Money in a custodial account in the child's name is counted as the child's asset when you fill out the FAFSA (Free Application for Federal Student Aid) for college. Money in a parent-owned account is counted as a parent asset, which affects financial aid differently. Talk to a financial aid office if this matters for your situation.
What happens to the account when my child turns 18?
The account typically converts to the child's sole ownership, though some banks delay this until 21. Check with your bank about their policy. Once it is the child's account, you no longer have access unless they add you as an authorized user.
Can a child have more than one bank account?
Yes. A child can have a custodial account at one bank and a teen checking account at another. Some families use one account for savings and another for spending money. There is no legal limit, though having too many accounts can be confusing to manage.