You cannot open a savings account in someone else's name without their knowledge and permission
A savings account must be opened by the person whose name appears on it, or by someone with legal authority to act on their behalf. Banks require the account owner to sign documents and verify their identity in person or online. If you want to save money for someone else — a child, a relative, or someone you support — there are legal ways to do it, but they work differently than opening an account "in their name."
The reason banks enforce this rule is straightforward: they need to know who owns the money and who can withdraw it. Opening an account without the owner's knowledge creates legal problems for both you and the bank, and it can expose you to fraud charges.
Key Takeaways
- The person whose name is on the account must sign the paperwork and verify their identity — you cannot do this for them without legal authority.
- A custodial account lets you open and manage a savings account for a minor child, with the child as the owner and you as the custodian.
- A joint account with another adult requires both people to sign and both to provide identification, and both can withdraw money.
- If you want to save money for someone without their involvement, you must open an account in your own name — the money is legally yours.
- Power of attorney gives you legal authority to open accounts on someone's behalf, but it requires their signature and a lawyer's involvement.
Custodial accounts for children
If you want to open a savings account for a minor child you are raising or supporting, you can open a custodial account. The child is the owner, but you are the custodian — you manage the account and make deposits and withdrawals until the child reaches the age of majority (usually 18 or 21, depending on your state).
To open a custodial account, you will need the child's Social Security number, birth certificate, and proof of your relationship to them (adoption papers, birth certificate, or court custody order). You will also need to show your own identification. The child does not need to be present, and they do not sign anything. The bank will ask you to confirm that you have authority to act on the child's behalf.
When the child turns 18 or 21, the account becomes theirs to control. You lose the right to withdraw money without their permission. This is why custodial accounts are different from straightforward saving money in your own account — the money legally belongs to the child from the start.
Joint accounts with another adult
If you want to open a savings account with another adult — a spouse, partner, or family member — you can open a joint account. Both of you own the account equally, and both can deposit and withdraw money without asking permission.
Both account holders must be present (in person or online) to sign the paperwork and verify their identity. The bank will ask for both Social Security numbers and both IDs. Some banks allow one person to open the account online and send a link to the other person to sign remotely, but both signatures are required before the account is active.
A joint account is useful if you and another person share expenses or want to save together. It is not useful if you want to save money for someone who does not know about it or does not want to be involved — that person would have to sign the paperwork, and they would have equal access to the money.
Power of attorney for adults without capacity
If you need to manage finances for an adult who cannot do so themselves — because of illness, disability, or age — you may be able to open an account with power of attorney. This is a legal document that gives you authority to act on their behalf.
To use power of attorney, the other person must sign the document while they still have the mental capacity to understand what they are signing. A lawyer usually prepares the document, and it must be notarized. Once it is in place, you can open accounts in their name using the power of attorney as proof of your authority.
Power of attorney is not a quick process — it requires a lawyer and can cost several hundred dollars. It is also not the same as opening an account without permission. The person must knowingly grant you this authority, and the document is a legal record of that grant.
Saving money in your own name for someone else
If you want to save money for someone — a child you do not have custody of, an adult relative, or anyone else — but you do not want to involve them in opening the account, you can open a savings account in your own name. The money is legally yours, and you can do with it what you choose.
This approach has no legal barriers. You can deposit as much as you want, and you can withdraw it whenever you need to. The downside is that the money is not protected if you face legal trouble — creditors or a court could claim it — and if you die, it becomes part of your estate and may not go to the person you intended.
If you are saving for a child and want the money to go to them if something happens to you, talk to a lawyer about setting up a trust or naming them as a beneficiary on the account. These options cost less than power of attorney and give you more control over when and how the money is used.
What happens if you try to open an account without permission
Banks verify identity before opening any account. If you try to open an account in someone else's name without them present, the bank will ask for their signature and ID. If you forge their signature or use their information without consent, you have committed fraud — a crime that can result in criminal charges and civil liability.
Even if you succeed in opening the account, the person whose name is on it can report it to the bank and have it closed. They can also report you to law enforcement. Banks take identity fraud seriously and cooperate with investigations.
Frequently Asked Questions
Can I open a savings account for my grandchild without their parent's permission?
No. If the child is a minor, their parent or legal guardian must consent. You can ask the parent to open a custodial account with you as a co-signer, or you can open an account in your own name and give the money to the parent to deposit into the child's account. If the child is an adult, they must open the account themselves or grant you power of attorney.
What if I want to surprise someone with a savings account?
You can open an account in your own name and save money for them. When you are ready, you can transfer the money to an account they control, or you can tell them about the account and offer to add them as a joint owner (which requires their signature). The surprise is the money, not the account itself.
Can a parent open a savings account for an adult child?
Only if the adult child signs the paperwork and provides their ID. If the adult child lacks the mental capacity to consent, a parent can use power of attorney. Otherwise, the adult must be involved in opening their own account.
Is a custodial account the same as a trust?
No. A custodial account is simpler and requires no lawyer — you just open it at a bank. A trust is a legal document that gives you more control over how and when money is used, but it costs more to set up. Both let you save money for a child, but they work differently.
What if someone opened a savings account in my name without permission?
Contact the bank when ready and report it as fraud. Ask them to close the account and freeze it so no more withdrawals can happen. You can also file a report with your state's attorney general or the Consumer Financial Protection Bureau. If you know who opened the account, you can report them to law enforcement.