Yes, you can open a high yield savings account before 18, but you'll need a parent or guardian
Most banks and online financial institutions that offer high yield savings accounts require you to be at least 18 to open one in your own name. However, many of them let a parent or guardian open a custodial account on your behalf, which gives you access to the higher interest rates these accounts pay. The account is legally theirs until you turn 18, but you can use it to save money and watch it grow faster than a regular savings account would.
The interest rates on high yield savings accounts change, but they're typically much higher than what traditional banks offer — sometimes 4% to 5% annually, compared to 0.01% or less at big brick-and-mortar banks. That difference matters when you're saving for something specific: a car, college, a laptop, or just building the habit of not spending everything you earn.
Not every bank offers custodial high yield accounts, and the ones that do have different rules about what you can do with the money and when you get full control. Knowing which banks have them and what their terms are will save you time and help you pick the account that actually fits your situation.
Key Takeaways
- A parent or guardian must open and own the custodial account until you turn 18, though you can deposit and withdraw money during that time.
- Online banks like Marcus, Ally, and American Express Personal Savings offer custodial high yield accounts with rates between 4% and 5%, compared to nearly 0% at traditional banks.
- Some custodial accounts let you withdraw money anytime, while others restrict withdrawals until you reach a certain age or the account matures.
- When you turn 18, the account converts to a regular account in your name, and you gain full control without closing it or moving the money.
- Your parent or guardian can see all transactions and balances, so this account is not private — it's designed for transparency while you're a minor.
Which banks actually offer custodial high yield accounts
Not every bank that offers high yield savings has a custodial version. The ones that do are mostly online banks, because they have lower overhead and can pass the savings to you as higher interest rates. Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank all offer custodial high yield savings accounts. Each one has slightly different features and interest rates, so comparing them before you open an account makes sense.
Some traditional banks — like Chase, Bank of America, and Wells Fargo — offer savings accounts for minors, but their interest rates are much lower, often under 0.1%. If your parent already banks there and wants to keep everything in one place, that's a trade-off worth making. But if you're choosing based on interest rate alone, an online bank's custodial high yield account will earn you significantly more money over time.
Credit unions sometimes offer youth savings accounts with competitive rates, especially if your parent is already a member. It's worth asking your parent's credit union whether they have a custodial high yield option, because rates and terms vary by institution.
How a custodial account works while you're under 18
A custodial account is owned by your parent or guardian, not by you. They open it, they're the legal owner, and they can see every deposit, withdrawal, and cent of interest you earn. You can deposit money into it (usually through a mobile app or online portal), and you can withdraw money, but the parent or guardian has the final say on what happens to the account. Some banks let the minor make withdrawals without parental approval, while others require the parent to approve each one.
The money in the account is yours in the sense that it's meant for your benefit, and the interest it earns is yours. But legally and on paper, it belongs to your parent or guardian until you turn 18. This matters if your parents go through financial trouble — creditors can potentially reach custodial accounts, though this is rare and varies by state. It also means your parents can see how much you're saving and how you're spending it, so privacy is not part of the deal.
You'll need to provide your Social Security number to open the account, and your parent will need theirs as well. The bank will verify both of your identities before the account is active. Most online banks let you open a custodial account entirely through their website or app, without visiting a branch.
What happens to the account when you turn 18
When you reach 18, the custodial account automatically converts to a regular account in your name. You don't have to close it, move the money, or do anything — the bank handles the conversion. The money stays where it is, the interest keeps accruing at the same rate, and you now have full legal control. Your parent or guardian can no longer see the balance or make transactions, and you can withdraw all the money whenever you want.
Some banks send you a notice before the conversion happens, giving you time to decide if you want to keep the account or move your money elsewhere. Others convert silently and you only notice when you log in. Either way, you're not locked in — if you want to move your savings to a different bank after you turn 18, you can do that without penalty.
The interest rate on the account may change after conversion, depending on the bank's policies. Most banks keep the same rate for existing customers, but it's worth checking the terms before you turn 18 so you're not surprised.
Interest rates and how much your money will actually grow
High yield savings accounts currently pay between 4% and 5% annually, though this changes based on what the Federal Reserve does with interest rates. If you deposit $1,000 and leave it untouched for a year at 4.5%, you'll earn about $45 in interest. That might not sound like much, but compare it to a traditional bank account earning 0.01% — you'd earn about 10 cents on the same $1,000.
The real benefit shows up over time and with larger amounts. If you save $100 a month for three years in a high yield account at 4.5%, you'll have about $3,700 instead of $3,600. That extra $100 came from interest alone. If you're saving for something specific — a car down payment, college books, moving out — that difference adds up.
Interest rates are not may provide and will change. Banks adjust their rates based on what the Federal Reserve does, and they can lower rates without warning. Before you open an account, check the current rate on the bank's website. Don't assume the rate you see today will be the rate you get in six months.
Restrictions on withdrawals and access
Most custodial high yield accounts let you withdraw money anytime without penalty, just like a regular savings account. However, some banks limit how many withdrawals you can make per month — often six — before charging a fee. This is less common now than it used to be, but it's worth checking the terms before you open an account.
A few banks offer custodial accounts with restrictions specifically designed to discourage withdrawals and encourage saving. These might lock your money until you turn 18, or until a specific date you choose when you open the account. If that's the case, the bank usually pays a higher interest rate to make up for the lack of access. Only choose this type of account if you're certain you won't need the money before the lock-up date ends.
Your parent or guardian can always withdraw money from a custodial account, even if you can't. This is a legal protection for them as the account owner. If you're worried about your parent taking money you've saved, talk to them about it before opening the account — this is a conversation worth having.
How to open a custodial high yield account
The process is straightforward and takes about 15 minutes. Your parent or guardian goes to the bank's website or app, selects "open a custodial account" or "minor account," and enters both of your information. They'll need your full name, date of birth, and Social Security number, plus their own. The bank will verify both identities — usually by asking security questions or checking your credit report (which doesn't hurt your credit as a minor).
Once the account is open, you'll get login credentials for the app or website. You can start depositing money right away — either by transferring from your parent's account at the same bank, or by having your parent transfer money from their account elsewhere. Some banks let you set up direct deposit if you have a job, so your paycheck goes straight into the high yield account.
Your parent will also get login credentials and can monitor the account anytime. They'll see every transaction, the current balance, and the interest earned. If the bank requires parental approval for withdrawals, you'll submit a request through the app and your parent approves it.
Comparing custodial accounts side by side
| Bank | Current Rate | Parental Approval for Withdrawals | Minimum Deposit | Account Conversion at 18 |
|---|---|---|---|---|
| Marcus by Goldman Sachs | 4.30%–4.50% | No | $0 | Automatic |
| Ally Bank | 4.20%–4.50% | No | $0 | Automatic |
| American Express Personal Savings | 4.30%–4.50% | No | $0 | Automatic |
| Discover Bank | 4.35%–4.50% | No | $0 | Automatic |
| Chase Savings (Youth) | 0.01% | No | $0 | Automatic |
Rates change frequently, so check each bank's website for the current rate before you decide. The difference between 4.2% and 4.5% might seem small, but over several years it adds up. Also consider whether you want the option to withdraw money anytime — if you do, avoid accounts with lock-up periods.
When comparing accounts, look beyond just the interest rate. Check whether the bank charges monthly fees, whether there are limits on how many times you can withdraw per month, and whether the account has any minimum balance requirements. Some banks waive fees for accounts under 18, while others charge the same fees as adult accounts.
Frequently Asked Questions
Can I open a high yield savings account without my parent knowing?
No. You need a parent or guardian to open a custodial account, and they'll receive statements and can see all activity. If you want a savings account that's truly private, you'll have to wait until you turn 18. Some banks let you open a regular account at 16 or 17 with parental consent, but these usually don't offer high yields.
What if my parent wants to take money out of my custodial account?
They can, because they own it legally. The best protection is a conversation before you open the account about what the money is for and that it's meant for your future. If you're worried about access, consider a locked custodial account that restricts withdrawals until you turn 18 — your parent can't take money out if the account won't let them.
Do I have to pay taxes on the interest I earn?
Yes, but probably not much. Interest income under $1,250 per year is usually not taxable for dependents. If you earn more than that, your parent reports it on their tax return. Talk to your parent about this before you open the account so there are no surprises at tax time.
Can I move my money to a different bank after I turn 18?
Yes. Once the account converts to your name, you can transfer the money to any other bank, close the account, or keep it open. There's no penalty for moving your savings. If you want to switch banks, the new bank can usually handle the transfer for you.
What if the bank lowers the interest rate after I open the account?
Your rate will go down with it. High yield savings rates are not locked in — they change based on market conditions. You can move your money to a different bank if another one offers a better rate, but you'll want to compare the hassle of switching against the actual difference in earnings.