Yes, you can open a bank account in your son's name, but the rules depend on his age and what you plan to do with it
If your son is under 18, you will be the account owner and custodian—the bank account legally belongs to you, not him. You can deposit money, make withdrawals, and manage it entirely. Once he turns 18, the account becomes his to control, though you can keep access if he allows it. If your son is already 18 or older, he must open the account himself; you cannot open one in his name without his presence and signature, and you cannot access it without his permission.
The practical reason most parents open accounts for minors is to teach money management, save for their future, or hold money on their behalf. Banks make this straightforward because they understand the custodial relationship. What matters is knowing what you can legally do with the account before he turns 18, and what happens to it afterward.
Key Takeaways
- A minor's bank account is legally owned by the parent or guardian who opens it, and you can withdraw money and make decisions about it without the child's permission.
- Once your son turns 18, the account becomes his property, and you lose access unless he explicitly gives you permission to stay on the account.
- Most banks require the parent to be present with a valid ID and the child's Social Security number or tax ID to open a custodial account.
- Money in a custodial account may affect your son's financial aid may be able to access for college, because it is counted as his asset, not yours.
- If your son is already 18 or older, he must open the account himself and sign all paperwork; you cannot open it in his name without him present.
What happens to the account when your son turns 18
At age 18, the custodial account automatically becomes your son's sole property. The bank will send him notice that he is now the account owner. You will no longer have the legal right to withdraw money, see the balance, or make decisions about the account unless he adds you as an authorized user or gives you power of attorney.
Some banks allow you to stay on the account as a joint owner if your son agrees, but this requires him to sign new paperwork. If he does not want you on the account, you have no recourse—it is his money and his account. Plan for this transition by talking to your son before his 18th birthday about what will happen and whether he wants you to remain involved.
What you need to bring to the bank
To open a custodial account, bring your valid government-issued ID (driver's license, passport, or state ID) and your son's Social Security number. Some banks also ask for his birth certificate or a copy of it. If your son is old enough to come with you, the bank may ask him to be present and sign the paperwork, though this varies by bank and by your son's age.
Call the bank ahead of time and ask what documents they need for a custodial account. Different banks have different requirements, and some require the child to be present even for very young children. Having the right documents ready speeds up the process and avoids a wasted trip.
How a custodial account affects college financial aid
Money in a custodial account in your son's name is treated as his asset when he fills out the Free process for Federal Student Aid (FAFSA). This means it will reduce his financial aid may be able to access more than money in your name would. The federal formula counts student assets at a 20 percent rate, meaning for every dollar in the account, his aid drops by about 20 cents. Parent assets are counted at a much lower rate.
If college financial aid is a concern, talk to a financial advisor before opening a large custodial account. Some families use other savings vehicles—such as 529 plans in the parent's name or Coverdell Education Savings Accounts—to avoid this impact. This is not a reason to avoid saving for your son, but it is information worth having before you decide how much to put in a custodial account.
If your son is already 18 or older
Your son must open the account himself. He will need to go to the bank with a valid ID and his Social Security number. You cannot open an account in his name without him present and signing the paperwork. Banks are required by law to verify the identity of the account owner, and that means he must be there.
If you want to help manage his finances, you can ask him to add you as an authorized user or joint owner after the account is open. This requires his consent and his signature. If he refuses, you have no legal way to access or control the account, even if you are his parent.
Custodial accounts versus joint accounts
A custodial account is opened by a parent in the child's name. The parent is the legal owner until the child turns 18. A joint account is one where two people (usually parent and adult child) both own the account and both can withdraw money. The difference matters because a custodial account is yours to control now, but a joint account with an adult requires both people to agree on withdrawals—or at least, that is the legal theory, though in practice banks often allow either person to withdraw.
For a minor, a custodial account is the standard choice. For an adult son, a joint account is an option only if he agrees to it. Some parents and adult children use joint accounts to manage shared expenses or to give a parent visibility into spending. Others keep accounts separate. The choice is yours and his to make together.
What banks offer custodial accounts
Most banks and credit unions offer custodial checking or savings accounts. National banks like Chase, Bank of America, and Wells Fargo have them. Credit unions often have them too. Online banks like Ally and Marcus also offer custodial accounts, though some require you to open a parent account first.
Shop around by calling three or four banks and asking about their custodial account options, minimum balances, and fees. Some banks waive fees for accounts under a certain balance or if you set up direct deposit. Others charge monthly maintenance fees. The difference can add up over years, so it is worth a few phone calls.
Frequently Asked Questions
Can I withdraw money from my son's custodial account without asking him?
Yes, while he is a minor. You are the account owner and can withdraw money for any reason. Once he turns 18, the account is his, and you cannot withdraw without his permission. Some parents use custodial accounts to save money they intend to give to their child later; others use them to hold money the child has earned. Either way, the money is yours to manage until he reaches adulthood.
What if I want to close the account before my son turns 18?
You can close a custodial account at any time. The bank will give you the balance, and the account ends. If your son is old enough to understand, it is worth explaining why. If the account has a significant balance, consider whether closing it serves your goals or his.
Does my son have to use the account once he turns 18?
No. Once the account becomes his, he can leave it open, close it, or ignore it. If he closes it, the bank will send him the balance. If he leaves it open but does not use it, the bank may charge inactivity fees or close it after a period of no activity—usually one to three years, depending on the bank. Check your account agreement to see what the bank's policy is.
Can I open a custodial account if I do not have custody of my son?
This depends on your relationship to the child and your state's law. If you are the parent, you can usually open a custodial account. If you are a grandparent, aunt, uncle, or other relative, some banks will let you open one if you have legal guardianship or power of attorney. Call the bank and explain your situation; they can tell you what documents you need.
Will opening a custodial account affect my taxes?
The interest or earnings in the account may be taxable to your son, depending on the amount. The bank will send a 1099 form if the earnings exceed a certain threshold. Talk to a tax professional if the account will have a large balance, but for most small custodial accounts, the tax impact is minimal.