Yes, you can have a savings account before you turn 18

Most banks and credit unions let you open a savings account while you're still a minor, usually starting around age 13 or 14. The account works the same way as an adult's — you deposit money, earn a small amount of interest, and can withdraw when you need it. The main difference is that a parent or guardian has to co-own the account with you, which means they can see what's in it and make transactions too.

Some banks have accounts specifically designed for teens, with features like no monthly fees and tools to help you learn about money. Others let you open a regular savings account with a parent as a co-owner. Either way, having an account now builds the habit of saving and gives you a place to keep money that's separate from your checking account.

Key Takeaways

  • You can open a savings account as a minor, but a parent or guardian must co-own it with you until you turn 18.
  • Many banks offer teen savings accounts with no monthly fees and educational tools, while others let you open a regular account with a parent as co-owner.
  • You'll need to bring a parent or guardian to the bank in person, along with their ID and proof of your identity and address.
  • Once you turn 18, you can convert the account to your name alone or open your own account without a co-owner.
  • Interest rates on savings accounts are low but vary by bank, so comparing a few options can help you find the best rate.

What you need to open a teen savings account

To open an account, you and a parent or guardian need to go to a bank or credit union branch together. Bring your parent's government-issued ID (driver's license or passport), your birth certificate or state ID, and a piece of mail showing your current address — a utility bill or lease in your parent's name usually works. Some banks accept a school ID as proof of identity for minors.

Call ahead to confirm what documents the specific bank needs, since requirements vary. Some banks let you start the process online, but you'll still need to visit in person to finish it. A few online banks now offer teen accounts without requiring a branch visit, though this is still less common.

How a co-owned account works

When your parent is a co-owner, you both have full access to the account. That means your parent can deposit money, withdraw money, and see every transaction. It also means the bank can contact either of you about the account. This setup protects the bank because a minor can't sign a legal contract on their own, so the co-owner takes legal responsibility.

The co-owner doesn't have to be your parent — it can be a grandparent, aunt, uncle, or other guardian. The person you choose should be someone you trust and who supports you saving money. Some teens worry about privacy, but most parents respect that the account is for learning, not for monitoring every purchase.

Teen savings accounts versus regular accounts

Banks market teen accounts with features designed for younger savers: no monthly maintenance fees, no minimum balance requirement, and sometimes educational resources about budgeting or saving goals. A few offer debit cards linked to the savings account so you can practice managing money.

A regular savings account with a parent as co-owner works just as well, but may have a monthly fee if you don't keep a minimum balance. The interest rate — the money the bank pays you for keeping your money there — is usually the same either way. Compare what a few banks near you offer before deciding, since rates and fees vary.

Interest rates and how savings accounts grow

Banks pay you interest on the money you keep in a savings account. The rate changes based on what the Federal Reserve does with interest rates, so it's different at different times. Right now, rates range from nearly zero at some large banks to around 4 or 5 percent at online banks and credit unions, but these numbers shift regularly.

Even a low rate adds up over time if you keep money in the account. If you save $500 at a 4 percent rate, you'd earn about $20 in a year. That's not a fortune, but it's money you didn't have to work for, and it teaches you how compound interest works. The longer money sits in the account, the more interest it earns.

What happens when you turn 18

When you reach 18, you have choices. You can keep the account as-is with your parent still as co-owner, or you can ask the bank to remove them and make it your account alone. Some banks do this automatically; others require you to visit in person or sign paperwork. You can also close the account and open a new one in just your name if you want a fresh start.

Many teens keep the co-owned account for a while even after turning 18, especially if they're still living at home or in school. There's no rush to change it. When you do want your own account, the process is straightforward — the bank has handled thousands of these transitions.

How to start saving money as a teen

Once your account is open, the hardest part is actually putting money in it. Set a specific goal — a laptop, a trip, a car down payment — and decide how much you can save each month. Even $10 or $20 adds up. If you have a job, consider putting a percentage of each paycheck directly into savings before you spend anything else.

Some banks let you set up automatic transfers from a checking account to savings, which makes saving easier because the money moves without you having to think about it. Treat your savings account like a bill you have to pay yourself — it's a habit that gets easier the longer you do it.

Frequently Asked Questions

Can I open a savings account without a parent?

No, you need a parent or legal guardian to co-own the account until you turn 18. A few banks have exceptions for older teens (usually 16 or 17) if you have a job and can show income, but this is rare. Your best option is to ask a parent, grandparent, or other guardian to help you open one.

What if my parent won't let me open an account?

Talk to them about why they're hesitant — they might worry about fees, or they might not realize teen accounts exist. Offer to go to the bank together and ask questions. If a parent truly won't help, a trusted adult like a grandparent or school counselor might be able to co-own the account instead.

Can I have more than one savings account?

Yes. Some teens open one account for everyday savings and another for a specific goal like a car or college. Having two accounts can help you organize your money, but you'll need your co-owner's permission and both accounts will show up on their records.

Do I have to use the bank where my parent banks?

No. You can choose any bank or credit union. Your parent doesn't have to have an account there. That said, if you both bank at the same place, it's easier to move money between accounts and handle the account together.

What if I want to withdraw all my money before I turn 18?

You can withdraw your money anytime, though your co-owner may need to approve it depending on the bank's rules. There's no penalty for taking money out of a savings account. If you're thinking about closing the account, talk to your co-owner first — they might have questions about why.