Yes, you can open a savings account for a minor, but the account structure depends on the child's age and your relationship to them

Most banks and credit unions let you open a savings account in a child's name before they turn 18. The account is usually set up as a custodial account, meaning you (the parent, guardian, or other adult) control it until the child reaches the age of majority—typically 18 or 21, depending on your state and the financial institution.

Some banks also offer joint accounts where both you and the child are listed as owners, though custodial accounts are more common for younger children. A few institutions have accounts designed specifically for teens that let the young person manage the account with parental oversight.

The process is straightforward: you bring the child (or sometimes just their birth certificate or Social Security number) to the bank, provide your own identification, and complete an application. Most accounts open the same day or within a few business days.

Key Takeaways

  • Custodial accounts are the standard structure for minors' savings accounts, with the parent or guardian controlling the money until the child reaches 18 or 21.
  • You will need the child's Social Security number, birth certificate or state ID, and your own identification to open an account.
  • Most banks and credit unions offer minor savings accounts with no minimum balance or low minimums, though interest rates vary widely.
  • Once the child reaches the age of majority, the account automatically converts to a regular account in their name, and you lose control of it.
  • Some banks restrict how much money can be deposited or withdrawn without parental approval, while others place no limits once the account is open.

What documents you need to bring

To open a custodial account, bring your own government-issued photo ID (driver's license, passport, or state ID) and the child's Social Security number. If you do not have the Social Security number memorized, bring the Social Security card or a birth certificate that shows it.

Some banks also ask for a birth certificate to verify the child's age and identity, though not all require it. A few institutions ask for proof of your relationship to the child if you are not a parent—a custody order, guardianship papers, or a birth certificate showing you as the parent.

Call the bank or credit union ahead of time to confirm what they need. Requirements vary by institution, and some let you open the account online or by mail if you have the documents ready.

Custodial accounts versus joint accounts

A custodial account is held in the child's name, but you have full legal control until they reach the age of majority. The money belongs to the child for tax purposes, and any interest earned is reported on their tax return (not yours). You cannot withdraw money for your own use—the account is legally the child's property, even though you manage it.

A joint account lists both you and the child as owners, and either of you can withdraw money at any time. Joint accounts are simpler to set up and give the child earlier access to manage their own money, but they also mean the child can drain the account without your permission once they understand how to do it. Joint accounts are less common for young children but more popular for teenagers who are learning to handle money.

When a custodial account reaches maturity (usually at 18 or 21), it automatically converts to a regular account in the child's name only. You lose all access. With a joint account, you both retain access unless one of you closes it or removes the other.

Minimum balances and account fees

Most banks and credit unions waive minimum balance requirements for minor savings accounts, or set them very low—often $0 to $25. A few institutions require $100 or more, but these are less common.

Monthly maintenance fees are rare for minor accounts. Many banks offer them fee-free as long as the account stays open and active. Some charge a small fee ($2 to $5 per month) if the balance drops below a certain threshold, though you can usually avoid this by keeping even a small amount in the account.

Interest rates on minor savings accounts are typically very low—often 0.01% to 0.05% annual percentage yield (APY), though some online banks and credit unions offer rates closer to 0.5% to 1%. The rate depends on the institution and market conditions, not on the account holder's age. Compare rates across a few banks if you want to maximize the small amount of interest the account will earn.

Age limits and account conversion

You can open a custodial account for a child of any age, including newborns. There is no lower age limit. The upper limit is 18 in most states, though some banks allow custodial accounts until age 21 if you choose that option at opening.

When the child reaches the age of majority (18 or 21, depending on your state and the bank's policy), the custodial account automatically converts to a regular account in their name. You will no longer have access, and the child becomes the sole owner. The bank will notify you before this happens, usually 30 to 60 days in advance.

If you want to transfer money out of the account before it converts, you must do so while you still have control. Once the child turns 18 or 21, the money is theirs to keep, spend, or move to another account.

Withdrawal and deposit rules

Most banks place no restrictions on deposits to a minor's account—you can add money anytime. Withdrawals are usually unrestricted as well once the account is open, though some institutions require the custodian (you) to be present for large withdrawals or to authorize them in advance.

A few banks limit how much can be withdrawn without parental approval, especially for accounts held by teenagers. These limits are typically $100 to $500 per day or per transaction. Ask the bank about their specific rules before opening the account if this matters to you.

If the child is old enough to have a debit card linked to the account, the bank may set daily spending limits (often $100 to $500) that you can adjust. These limits help prevent overspending and give you control over how the child uses the account.

Tax implications for the account holder

Money in a custodial account belongs to the child for tax purposes, even though you control it. Any interest the account earns is reported on the child's tax return, not yours. This is usually beneficial because children often have little or no tax liability, so the interest is taxed at a lower rate than it would be if it were in your name.

If the account earns more than a certain amount of interest in a year (the threshold changes annually but is typically around $1,200), the child may need to file a tax return. The bank will send a 1099-INT form showing the interest earned. You will need this form to file the child's taxes.

Custodial accounts do not affect your own taxes or tax filings. The money in the account is not considered your income, and you cannot claim it as a deduction or credit.

Where to open a minor's savings account

Nearly every bank and credit union offers savings accounts for minors. National banks like Chase, Bank of America, and Wells Fargo have them. Online banks like Ally, Marcus, and Discover also offer minor accounts, though you may need to open the account in person or by mail rather than online.

Credit unions often have lower fees and higher interest rates than large banks, so it is worth checking if you belong to one or if you are near one in your area. Some credit unions let non-members open accounts if a family member is already a member.

Compare a few institutions before deciding. Look at the interest rate, monthly fees, minimum balance, withdrawal limits, and whether the bank offers a debit card for the account. The difference in interest rates is usually small, but fees can add up over time.

Frequently Asked Questions

Can I open a savings account for someone else's child?

You can open a custodial account as a guardian, but not as an unrelated adult. If you are the child's legal guardian (through a court order), you can open an account. If you are a grandparent, aunt, uncle, or family friend, you typically cannot open a custodial account unless you have legal guardianship. Some banks may allow you to open a joint account with the child's parent's permission, but this is less common.

What happens to the account when the child turns 18?

The custodial account automatically converts to a regular account in the child's name. You lose all access and control. The bank will notify you before this happens, usually 30 to 60 days in advance. The child becomes the sole owner and can withdraw all the money, close the account, or manage it however they wish.

Can the child access the account before they turn 18?

This depends on the bank and the child's age. Very young children cannot access the account on their own. Teenagers may be able to use a debit card linked to the account, but you typically retain control over large withdrawals or spending limits. Ask the bank about their specific rules for the child's age.

Do I need the child's permission to open an account?

No. As the parent or legal guardian, you can open a custodial account without the child's consent. You do not need to bring the child to the bank, though some institutions prefer it. For teenagers, many banks ask the young person to sign the paperwork, but this is for their records, not because their permission is required.

Can I use the money in the account for my own expenses?

No. Money in a custodial account is legally the child's property. Using it for your own expenses is considered a misuse of the account and can have legal consequences. The money must be used for the child's benefit—education, medical care, living expenses, or savings for their future.