What you need to open an account for a child

A parent or legal guardian opens the account by going to a bank or credit union in person with the child's Social Security number, proof of the child's identity (usually a birth certificate), and proof of the parent's identity (a driver's license works). The child does not have to be present, though many banks ask that they are. You will fill out an account application on the spot, and the account opens the same day or within a few business days.

The account is held in the child's name, but the parent or guardian has full control until the child reaches the age of majority — usually 18, though some states set it at 19 or 21. This is called a custodial account or UTMA account (Uniform Transfers to Minors Act). The bank will ask which parent or guardian is the custodian, and only that person can withdraw money or make changes to the account.

Different banks have different requirements. Some require a minimum deposit to open; others do not. Some charge monthly fees; others waive them for minors. Call ahead or check the bank's website to see what documents they need and what the terms are.

Key Takeaways

  • You need the child's Social Security number, birth certificate, and your own ID to open an account in person at a bank or credit union.
  • The account is in the child's name but under your control as custodian until they reach the age of majority, usually 18.
  • Many banks waive monthly fees for minor accounts and offer no-minimum or low-minimum opening deposits.
  • Some banks let you open an account online if you have a valid debit card or existing account, though most still require an in-person visit for minors.

Where to open the account

You can open a custodial account at any bank, credit union, or online bank that offers them. Traditional banks (Chase, Bank of America, Wells Fargo) have branches in most towns and let you walk in with your documents. Credit unions often have lower fees and higher interest rates on savings, but you have to be a member or live in their service area. Online banks (Ally, Marcus, Discover) usually have no monthly fees and higher interest rates, but they require you to open the account online and mail in documents or use a video call to verify identity.

If you already have an account at a bank, ask whether they let you open a minor account online or by phone. Some do; most still require you to come in person for a child's first account. Credit unions are worth checking if you belong to one — they often have youth accounts with perks like higher interest rates or no minimum balance.

What documents to bring

Bring the child's Social Security number (you will need the full nine digits), the child's birth certificate or passport, and your own government-issued photo ID. Some banks also ask for proof of address — a recent utility bill or lease in your name. A few banks ask for the child's Social Security card itself, though most accept the number written down.

If you are not the child's biological parent, bring legal proof of guardianship — a court order, adoption papers, or custody agreement. The bank will not open the account without it. If you are opening the account by mail or online, the bank will tell you which documents to photograph or scan and how to send them.

Types of accounts for minors

Most banks offer a basic savings account for minors, which earns a small amount of interest and lets you deposit and withdraw money. Some banks offer a checking account for teens, usually starting around age 13, which comes with a debit card. A few banks offer both in a bundle.

A 529 college savings plan is a separate product, not a bank account — it is a tax-advantaged investment account for education. You can open one at the same time as a savings account, but it is a different thing and works differently. A Roth IRA for a minor is also separate and requires the child to have earned income (from a job) to open one.

For most families, a basic savings account is the right start. It teaches the child about saving, earns a little interest, and has no strings attached.

Interest rates and fees

Interest rates on minor savings accounts vary widely. Some banks pay almost nothing (0.01% or less per year). Others, especially online banks and credit unions, pay 4% to 5% or higher. The difference matters: on $1,000, a 0.01% rate earns 10 cents a year, while a 4.5% rate earns $45. Check the current rate before you open the account — rates change, and banks publish them on their websites.

Monthly fees also vary. Many banks waive fees for minor accounts. Others charge $5 to $15 per month if the balance falls below a certain amount or if the account is inactive. A few charge no fees at all. Read the fee schedule before you open the account, or ask the bank directly.

What happens when the child turns 18

When the child reaches the age of majority, the account automatically converts to an adult account in their name. You lose custodial control, and the child can withdraw all the money or close the account. Some banks send a notice before this happens; others do not. If the child is still in school or living with you, talk to them about the account before their birthday so there are no surprises.

The money in the account belongs to the child legally, even though you put it there. If you want to set aside money for college or another goal, a 529 plan or a trust might be better options, because they have more restrictions on when the money can be withdrawn. A regular savings account is simpler and more flexible, but the child can spend it however they want once they turn 18.

How to add money to the account

Once the account is open, you can deposit money by transferring it from your own bank account online, by mailing a check to the bank, or by going to a branch in person. Most banks let you set up automatic transfers — for example, $25 per week from your checking account to the child's savings account. This is a good way to teach the child about regular saving without having to remember to deposit money each time.

If the child has a debit card (which some teen checking accounts include), they can make withdrawals at an ATM or in a store. If they only have a savings account, they can withdraw money by going to the bank in person, calling the bank, or using the bank's app or website if the bank offers online withdrawals.

Frequently Asked Questions

Can I open a savings account for a minor without going to the bank in person?

Most banks require at least one in-person visit to open a minor account, because they need to see the child's birth certificate and your ID. Some online banks let you open the account online and mail in copies of the documents, or use a video call to verify your identity. Call the bank first to ask whether they offer this option.

What if I don't have the child's birth certificate?

A passport works instead. If you have neither, you can order a birth certificate from the vital records office in the state or county where the child was born — this usually takes one to three weeks. Some banks may accept other documents like a school ID or medical records, but call ahead to ask.

Can the child access the money before they turn 18?

Yes, but only with your permission. As the custodian, you control the account. The child can ask you to withdraw money, but you decide whether to allow it. Once they turn 18, they can withdraw money without asking you.

Do I need to report the interest earned on my taxes?

Yes. Interest earned in a custodial account is taxable income to the child. If the interest is under $1,300 per year (this amount changes yearly), the child usually does not have to file a tax return. If it is more, the child or you will need to report it. Ask your tax preparer or the bank for details.

What is the difference between a custodial account and a trust?

A custodial account is simple and fast to set up — you just go to the bank. A trust is a legal document that gives you more control over when and how the child can spend the money, but it costs money to set up and requires a lawyer. For most families, a custodial account is enough.