Yes, teenagers can open a bank account, but the rules depend on their age and the bank
Most banks let teenagers open accounts, but the structure changes based on how old they are. Under 13, a parent or guardian must open a custodial account and co-own it with the teen. Between 13 and 17, many banks let teens open their own accounts with a parent's permission and signature, though the parent often stays on the account. At 18, a teenager can open an account entirely on their own with no parental involvement.
The specific rules vary by bank. Some banks have a minimum age of 13 for teen accounts; others start at 16. Some require a parent to visit the branch in person; others let you do it online. A few banks have no teen accounts at all and require you to wait until 18. The best move is to call or visit your bank's website and search for "teen account" or "minor account" to see what they offer.
Key Takeaways
- Teenagers under 13 need a parent to open and co-own a custodial account, while teens 13 to 17 can often open their own account with parental permission.
- Different banks have different minimum ages and rules, so check your bank's website or call to find out what they offer.
- A teen account typically comes with a debit card, online banking, and sometimes limits on daily spending or transfers that the parent can adjust.
- At 18, a teenager can open a standard adult account without any parental involvement or signature.
- Opening an account early helps a teenager build banking habits and a credit history that will matter later.
What happens with a custodial account for kids under 13
A custodial account is owned jointly by the parent and the child. The parent controls the account, can see all transactions, and can set rules about how the money is used. The teenager can use a debit card linked to the account and see their balance, but cannot close the account or move money without the parent's permission.
The parent's name and the teen's name both appear on the account. When the teenager turns 18 or 21 (depending on the state and the bank), the account automatically converts to a standard account in the teen's name alone, and the parent's access ends. Until that happens, the parent is legally responsible for the account and can monitor every deposit and withdrawal.
Teen accounts for ages 13 to 17: how much independence you get
A teen account is designed for teenagers old enough to manage money but still young enough that parents want oversight. The teenager can open the account with a parent's signature, and the parent usually stays on the account as a co-owner or authorized user. The teen gets their own debit card and can check their balance and make purchases, but the parent can see transactions and set spending limits.
Some banks let the parent set a daily withdrawal limit, a daily spending cap, or restrictions on certain types of transactions. For example, a parent might allow $50 per day in ATM withdrawals but block online transfers to other banks. These limits can usually be changed by the parent at any time through the bank's app or website.
The teen account typically does not come with a credit card or the ability to borrow money. It is a debit account only, meaning the teenager can spend only what is in the account. This protects both the teen and the parent from debt.
What documents and information you need to open an account
To open a teen account, you will need a government-issued ID for the parent and the teenager. For the teen, this is usually a school ID, a state ID, or a passport. The parent will need a driver's license or passport. Some banks also ask for a Social Security number for both the parent and the teen.
If you are opening the account in person at a branch, bring the IDs and be ready to provide the Social Security numbers. If you are opening it online, you will upload photos of the IDs and enter the Social Security numbers into the bank's website. Some banks require a parent to visit the branch in person even if the teen does not, so check the bank's requirements before you start.
You will also need to choose how to fund the account. Most banks let you transfer money from an existing account, deposit cash at a branch, or set up a direct deposit from a paycheck or allowance.
How teen accounts affect credit and financial history
A teen account does not directly build credit because it is a debit account, not a credit account. Credit bureaus track borrowed money and how reliably you pay it back. A debit account shows only that you have a bank account; it does not show credit activity.
However, opening an account early does build banking habits. A teenager who learns to check their balance, avoid overdrafts, and manage money responsibly is more likely to handle credit responsibly later. Some banks also report teen account activity to ChexSystems, a banking history database that other banks check when you open new accounts. A clean ChexSystems record helps you open accounts in the future.
When a teenager turns 18 and wants to open a credit card or take out a loan, lenders will look at their credit history, not their teen account history. But the discipline learned from managing a teen account often translates into better credit decisions later.
What to do when your teenager turns 18
At 18, your teenager can open a standard adult account without your involvement. If they already have a teen account, the bank will usually convert it automatically to an adult account on their 18th birthday. The parent's name comes off the account, and the teenager becomes the sole owner.
Before that happens, talk to your teenager about what they want to do. Some teens want to keep the same bank and account; others want to switch to a different bank or open a new account at a bank that offers better rates or features for young adults. If they want to switch, they can open the new account at 18 and transfer the money over.
At 18, your teenager can also open a credit card if they have income or a co-signer. This is when credit history actually begins to build. A credit card used responsibly—spending only what they can pay back each month—starts the record that will affect their ability to borrow for a car, apartment, or house later.
Common issues and how to fix them
One common problem is overdrafts. If a teenager spends more than is in the account, the bank may charge an overdraft fee. Some teen accounts have overdraft protection, which means the bank will decline the transaction instead of charging a fee. Check whether your bank's teen account has this feature, and ask them to turn it on if it is available.
Another issue is lost or stolen debit cards. If your teenager loses their card or it is stolen, call the bank immediately. The bank can freeze the card and issue a replacement, usually within 5 to 10 business days. In the meantime, your teenager can still access their money through ATMs using their PIN or through online banking.
A third problem is inactivity. Some banks close accounts that have no activity for a long period—usually 12 months or more. If your teenager is not using the account, make a small deposit or withdrawal every few months to keep it active. Check the bank's account agreement to see what their inactivity policy is.
Frequently Asked Questions
Can a 12-year-old open a bank account without a parent?
No. Banks require a parent or guardian to open and co-own a custodial account for children under 13. The parent's name and the child's name both appear on the account, and the parent controls it until the child reaches 18 or 21.
Do I need a Social Security number to open a teen account?
Yes, most banks require a Social Security number for both the parent and the teenager. If your teenager does not have one, you can request one from the Social Security Administration. The process takes a few weeks, so plan ahead if you want to open an account soon.
Can my teenager use their account to pay bills online?
It depends on the bank and the account type. Most teen accounts come with online banking and bill pay, so your teenager can set up automatic payments or send money to other people. Check with your bank to see what features are included in their teen account.
What happens to the account if my teenager moves out?
The account stays active as long as your teenager keeps it open. If you are a co-owner, you can still see transactions and set limits unless your teenager is 18 or older, in which case they can remove you from the account. The account does not close just because your teenager moves.
Can a teenager build credit with a teen account?
No, a debit account does not build credit because there is no borrowed money to repay. Credit builds when a teenager uses a credit card or takes out a loan and pays it back on time. A teen account teaches money management but does not create a credit history.