Yes, but the account will be in your name until they turn 18
Most banks let you open a custodial account online for a teenager under 18, but the account legally belongs to you as the parent or guardian until they reach the age of majority in your state—usually 18, sometimes 21. You control the account, you see all transactions, and you can set spending limits. The teenager gets a debit card and online access to check their balance, but they cannot close the account or move money without your permission.
The process is faster online than in a branch. You typically need your Social Security number, a valid ID, and your teenager's Social Security number. Some banks ask for their birth certificate or school ID as well. The whole thing usually takes 10 to 15 minutes, and the debit card arrives in the mail within 5 to 10 business days.
Not every bank offers custodial accounts online. Chase, Bank of America, Wells Fargo, and most credit unions do. Some online-only banks like Ally and Charles Schwab do not. Before you start, check the bank's website or call to confirm they have an online custodial account option.
Key Takeaways
- You open and control the account; your teenager gets a debit card and read-only access until they turn 18.
- You need your ID and Social Security number, your teenager's Social Security number, and sometimes their birth certificate.
- The process takes 10 to 15 minutes online, and the debit card arrives in 5 to 10 business days.
- Major banks like Chase, Bank of America, and Wells Fargo offer custodial accounts online, but some online-only banks do not.
- When your teenager turns 18, the account automatically converts to a standard account in their name, or you can close it and let them open their own.
What information you need to have ready
Gather these documents before you start the online process. Having them in front of you speeds up the process and prevents you from having to stop and search for something halfway through.
You will need your government-issued ID (driver's license, passport, or state ID), your Social Security number, and your current address. The bank will verify your identity by checking your credit report or asking security questions based on your financial history.
For your teenager, you need their full legal name, date of birth, and Social Security number. Some banks ask for a copy of their birth certificate or school ID, though many do not require it for online applications. A few banks ask whether your teenager has ever had a bank account before, so know that answer going in.
How the online process works, step by step
Start on the bank's website and look for "open an account" or "custodial account." You will land on a form that asks for your information first. Enter your name, address, phone number, email, and Social Security number. The bank will run a soft credit check—this does not lower your credit score and takes seconds.
Next, the form asks for your teenager's information: full legal name, date of birth, and Social Security number. Some banks ask you to confirm your relationship to the teenager (parent, legal guardian, or custodian). You will also choose the account type—usually a checking account, sometimes with a savings component.
Then you set initial preferences: whether to link a funding source (a transfer from your existing account), whether to order a debit card, and whether to turn on online and mobile banking. Most banks let you fund the account when ready with a transfer, or you can leave it empty and fund it later.
Finally, you review and sign electronically. The bank sends a confirmation email to you and sometimes a separate welcome email to your teenager's email address if you provided one. The account is active when ready, though the debit card takes 5 to 10 business days to arrive by mail.
What happens when your teenager turns 18
The custodial account does not automatically close or convert on their 18th birthday. Instead, the bank sends you a notice that the account is about to change status. You have a few options: let it convert to a standard account in their name (the most common choice), close it and have them open their own account, or transfer the balance to a new account.
If you do nothing, most banks automatically convert the account to a standard account in your teenager's name. They keep the same account number and debit card. You lose access to the account—you can no longer see transactions or set limits. Your teenager now owns it fully.
Some parents choose to close the custodial account and have their teenager open a new account in their own name at the same bank or a different one. This is useful if you want to start fresh or if your teenager wants to move to a bank with better features for young adults. The bank will tell you how much notice to give and whether there are any fees for closing.
Spending controls and monitoring tools
Most banks let you set daily spending limits on the debit card—for example, $50 per day or $200 per week. You can usually change these limits anytime through your online banking portal. Some banks let you turn the card on and off remotely, which is useful if it is lost or if you want to pause spending temporarily.
You can see all transactions in real time through your online account. Many banks send you alerts when the card is used, either by email or text message. Some let you set alerts for transactions over a certain amount—for example, notify you if your teenager spends more than $25 in a single transaction.
A few banks offer apps designed specifically for teen accounts, like Greenlight or FamZoo, which let you set chores, automate allowance, and control spending from your phone. These are separate from traditional bank accounts but work similarly. If your bank does not offer these features built in, you can use a third-party app alongside the bank account.
Fees and minimum balance requirements
Most custodial checking accounts have no monthly maintenance fee. Some banks waive fees only if you meet certain conditions—for example, if you set up direct deposit or keep a minimum balance. A few banks charge $5 to $10 per month, though this is less common.
Minimum balance requirements vary. Many banks have no minimum for custodial accounts. Others require $25 to $100 to keep the account open. Check the bank's fee schedule before you open the account—it is usually listed on the account details page or in the terms and conditions.
Overdraft fees explore if your teenager spends more than the account balance. Most banks charge $30 to $35 per overdraft. Some banks let you turn off overdraft protection, which means the card straightforward declines if there is not enough money. This is often the default for teen accounts, which is safer than allowing overdrafts.
Banks that offer custodial accounts online
| Bank | Online Custodial Account | Debit Card | Monthly Fee |
|---|---|---|---|
| Chase | Yes | Yes | No |
| Bank of America | Yes | Yes | No |
| Wells Fargo | Yes | Yes | No |
| Citibank | Yes | Yes | No |
| Most credit unions | Yes (varies by union) | Yes | No |
| Ally Bank | No | N/A | N/A |
| Charles Schwab | No | N/A | N/A |
Call your bank or check their website to confirm current offerings, as products change. If your bank does not offer custodial accounts, you can open one at a different bank while keeping your own account where it is.
Credit unions often have lower fees and more flexible policies than large national banks. If you are a member of a credit union, start there—many offer custodial accounts with no monthly fee and no minimum balance.
Frequently Asked Questions
Can my teenager use the account without me knowing?
No. You see all transactions in real time through your online banking portal. You can also set up alerts so you receive a notification every time the card is used. Your teenager cannot hide spending or transfer money without your knowledge.
What if my teenager loses the debit card?
Call the bank when ready to report it lost or stolen. The bank will cancel the card and mail a replacement, which usually arrives in 5 to 10 business days. Most banks do not charge a replacement fee. In the meantime, your teenager can still access the account online to check their balance, but they cannot make purchases.
Can I add money to the account after I open it?
Yes. You can transfer money from your own bank account anytime through online banking. You can also set up automatic transfers—for example, to deposit allowance on a specific day each week or month. Some employers let you split your direct deposit between accounts, so you can send a portion of your paycheck directly to your teenager's account.
What if my teenager is under 13?
Most banks require the teenager to be at least 13 years old to have a custodial account with a debit card. Some banks allow younger children but do not issue a debit card until age 13. A few banks have no age minimum for the account itself but restrict card access. Check with your bank about their specific age policy.
Does opening a custodial account affect my credit score?
No. The bank runs a soft credit check, which does not lower your credit score. A soft check is used only to verify your identity and does not appear on your credit report. Your teenager's credit is not affected either, since they are not the account owner.