You cannot open a savings account in someone else's name without their permission and involvement
Banks require the account owner to be present, provide identification, and sign the account agreement themselves. You cannot walk into a branch, hand over someone else's Social Security number, and create an account they do not know about. That would be fraud, and banks have systems designed to catch it.
What you can do depends on the person's age and your relationship to them. For a minor child, you can open a custodial account where you control the money until they reach a certain age. For an adult, you can open a joint account where both of you own the money equally and both can withdraw it. For someone unable to manage their own finances, you can become their legal representative through a power of attorney or guardianship, but that requires court involvement or their signed consent.
The key difference: the person must either be present, or you must have legal authority over their finances. Banks will not accept a phone call or a note from you saying someone else wants an account opened.
Key Takeaways
- A custodial account lets you open and manage a savings account for a minor child in your care, and the money transfers to them when they reach age 18 or 21 depending on the state and bank.
- A joint account requires both account owners to be present with ID and to sign the account agreement, and both owners can withdraw money at any time.
- A power of attorney document, signed by the other person, lets you open accounts and manage money on their behalf without going to court.
- Banks verify identity and ownership through government ID and Social Security number, so you cannot open an account for someone else without their knowledge or legal authority.
Custodial accounts for minors
If you are a parent, grandparent, or legal guardian of a child, you can open a custodial savings account (also called an UGMA or UTMA account, depending on your state). You control the account and make all decisions about the money while the child is under 18 or 21. The child's Social Security number goes on the account, but you are the custodian.
The bank will ask you to bring your ID and the child's Social Security number or tax ID. Some banks require the child to be present; others do not. You will sign as the custodian, and the account will be titled something like "John Smith, as custodian for Sarah Smith." The money in the account belongs to the child legally, even though you control it.
When the child reaches the age of majority in your state—usually 18, sometimes 21—the account automatically transfers to them. They then own it outright and you have no further control. Some banks let you choose the transfer age within a range; ask before you open the account if the timing matters to you.
Joint accounts with another adult
A joint account is owned equally by two or more people. Both owners can deposit and withdraw money without asking permission. Both names appear on the account, and both people receive statements. If you want to open a joint account with another adult, that person must come to the bank with you, bring their own ID, and sign the account agreement.
Joint accounts are common between spouses, partners, or adult family members who share finances. They are not a way to open an account "for" someone else—you are both opening it together, and you both have equal rights to the money in it. If you die, the money in a joint account typically passes to the surviving owner automatically, outside of probate.
Be aware that a joint account gives the other person full access. They can withdraw all the money without your permission. If you want to save money for someone else but keep control of it, a joint account is not the right tool.
Power of attorney for managing someone else's finances
A power of attorney is a legal document that lets you manage someone else's money and accounts with their permission. The person signs the document in front of a notary, naming you as their "attorney-in-fact" or agent. You then have the legal right to open accounts, make withdrawals, and handle financial decisions on their behalf.
This is different from a custodial account because the other person is an adult and has signed a document giving you authority. You do not need to go to court. You bring the signed power of attorney document to the bank, along with your ID and the other person's ID, and the bank will let you open an account in their name.
Power of attorney documents vary by state. Some are limited to specific tasks (like paying bills while someone is out of the country), and some are broad (giving you authority over all finances). A durable power of attorney stays in effect even if the person becomes unable to make decisions. You can write one yourself using a template, but having a lawyer review it costs $100 to $300 and reduces the chance a bank will reject it.
Guardianship for adults who cannot manage their own finances
If an adult cannot manage their own finances due to illness, disability, or cognitive decline, and they have not signed a power of attorney, you may need to go to court to become their legal guardian. A guardianship gives you the same authority as a power of attorney, but it requires a court order and is more formal and expensive.
You file a petition in the probate or family court in the county where the person lives. The court may require a doctor's statement that the person cannot manage their finances. The person may have a right to an attorney and to object. If the court approves, you receive a guardianship order that you bring to the bank to open accounts on their behalf.
Guardianship is slower and more costly than power of attorney—expect several months and $1,000 to $5,000 in legal fees—but it is the only option if the person cannot or will not sign a power of attorney document.
What banks ask for when you open an account for someone else
The documents you need depend on which type of account you are opening. For a custodial account, bring your ID and the child's Social Security number. For a joint account, both owners bring ID. For a power of attorney or guardianship, bring the signed legal document, your ID, and the other person's ID.
Banks verify identity using a government-issued ID (driver's license, passport, or state ID card) and cross-check the Social Security number against their fraud-detection systems. If the name, number, or ID do not match, or if the bank suspects fraud, they will ask questions or refuse to open the account. Some banks also run a ChexSystems report, which is a banking history check similar to a credit report.
If you are opening an account for someone else and the bank asks why, be straightforward: "This is a custodial account for my daughter" or "I have power of attorney for my mother." Banks handle these situations regularly and have procedures in place.
Frequently Asked Questions
Can I open a savings account for my grandchild without their parent's permission?
No. If the child's parent or legal guardian objects, the bank will not open a custodial account. If you are the legal guardian, you can open one. If you are not, you need the parent's consent. Some grandparents open a custodial account jointly with the parent to avoid conflict.
What happens if I open a joint account and then the other person empties it?
They have the legal right to do so. A joint account gives both owners equal access to all the money. If you want to protect savings from being withdrawn by the other person, use a custodial account (if they are a minor) or keep the money in an account in your name only.
Can I open a savings account for my spouse without them being there?
No. Even spouses must be present with ID to open a joint account or an account in their own name. If your spouse is out of the country or unable to come to the bank, you can open an account in your own name and add them later, or you can use a power of attorney if they have signed one.
Do I need a lawyer to set up a power of attorney?
Not always. Many states let you use a template form, and some banks provide their own power of attorney forms. However, a lawyer review costs $100 to $300 and can catch mistakes that might cause a bank to reject the document later. If the person's finances are complex, a lawyer is worth the cost.
If I have power of attorney, can I take money out of the account for myself?
Legally, no. A power of attorney is a fiduciary duty, meaning you must act in the other person's interest, not your own. You can be sued or prosecuted for taking money for yourself. If you need to be reimbursed for expenses you paid on their behalf, keep receipts and document it clearly.