Yes, you can open a savings account for a minor, but the account structure depends on the child's age and the bank's rules
A parent or legal guardian can open a savings account in a child's name at most banks and credit unions. The account belongs to the child, but you control it until they reach the age of majority—usually 18, though some states set it at 21. The bank will require your identification, the child's Social Security number, and proof of your relationship to the child, such as a birth certificate.
The specific rules vary by institution. Some banks allow you to open an account for a child of any age. Others have a minimum age, typically 13 or 14, and require the child to be present in person. A few banks let you open an account online for younger children if you're already a customer. The account type matters too: a standard savings account works differently from a custodial account, which has specific tax and control rules.
The main reason to open an account early is to let money grow over time and teach the child about saving. Money in the account earns interest, though rates are typically low—often less than 0.5 percent annually at traditional banks, though some online banks offer higher rates. The account also creates a banking history that can help later when the child applies for a credit card or loan.
Key Takeaways
- A parent or legal guardian can open a savings account for a minor in the child's name at most banks and credit unions, though some institutions have minimum age requirements.
- You will need your own identification, the child's Social Security number, and proof of your relationship, such as a birth certificate.
- You control the account until the child reaches the age of majority, at which point the account becomes theirs to manage.
- A custodial account has specific tax advantages if the child has earned income, but a standard savings account works for most situations.
- Interest rates on savings accounts are typically low, but opening an account early lets money grow and builds the child's banking history.
What you need to bring to the bank
Bring your government-issued photo ID—a driver's license or passport—and the child's Social Security number. If you don't have the child's Social Security number yet, you can request one from the Social Security Administration before opening the account, or some banks will let you open the account and add the number later.
You will also need proof of your relationship to the child. A birth certificate is the most common document, but an adoption decree, guardianship papers, or court order works too. If you are the child's legal guardian but not the biological parent, bring the guardianship document. Some banks also accept a custody agreement or a letter from the court.
A few banks require the child to be present in person, even for very young children. Others let you open the account without the child there. Call the bank ahead of time to ask what their specific requirement is, because policies differ even between branches of the same bank.
The difference between a standard account and a custodial account
A standard savings account in a minor's name is the simplest option. You open it, deposit money, and manage it. The account earns interest in the child's name. When the child turns 18 or 21, depending on your state, the account becomes theirs to control. You can withdraw money whenever you want, though some banks ask you to bring the child's ID or a birth certificate to prove your relationship.
A custodial account (also called a UTMA or UGMA account, depending on your state) is a legal structure that holds money or investments for a minor. The main advantage is tax treatment: if the child has earned income—from a job or modeling, for example—the first portion of that income is taxed at the child's rate, which is usually lower than yours. Once the child reaches the age of majority, the account automatically becomes theirs, and they can use the money for any purpose.
The trade-off is that custodial accounts are more restrictive. You cannot take the money back once you put it in—it belongs to the child legally. Some banks charge higher fees for custodial accounts. And when the child turns 18 or 21, they own the money outright, even if you intended it for college or another specific purpose.
For most families, a standard savings account is simpler and sufficient. A custodial account makes sense if the child has earned income and you want to reduce their tax burden, or if you want to set aside money that legally belongs to the child.
What happens when the child turns 18
When the child reaches the age of majority—18 in most states, 21 in a few—the account transitions to their control. The exact process depends on the bank. Some automatically convert the account and send the child a new debit card and online access. Others require you and the child to visit the branch together to sign new paperwork. A few require the child to come in alone and formally take over the account.
Contact your bank a few months before the child's 18th birthday to ask what their process is. Some banks send a notice automatically; others do not. If the account is not converted and the child tries to withdraw money or access it online, the bank may refuse because the account is still in the child's name but under your control.
If you and the child disagree about the money—for example, if you want them to use it for college and they want to spend it—you have no legal claim to it once they turn 18. The money is theirs. This is why a custodial account is worth considering if you want to may support the money is used for a specific purpose: you can discuss that intention with the child before they turn 18, but you cannot force it legally.
Banks and credit unions that accept minors
Most major banks accept savings accounts for minors, though their age minimums and requirements vary. Chase, Bank of America, Wells Fargo, and Citibank all offer accounts for minors, typically with a parent present. Credit unions often have more flexible policies and lower fees; many accept children as young as newborns if a parent is a member.
Online banks like Ally, Marcus, and Discover have different policies. Some do not offer accounts for minors at all. Others allow it only if you are already a customer and can open the account online. Call or check the bank's website before you visit, because the rules are specific to each institution and sometimes to each branch.
If you want a higher interest rate, some online banks and credit unions offer better rates on savings accounts than traditional banks, though the difference is usually small—perhaps 0.3 to 0.5 percent more per year. For a child's account, the difference in interest earned is usually a few dollars per year, so convenience and ease of access matter more than rate shopping.
What documents the bank will ask for
| Document | Why the bank needs it | Acceptable alternatives |
|---|---|---|
| Your government-issued photo ID | To verify your identity and that you are authorized to open an account | Driver's license, passport, state ID card |
| Child's Social Security number | To report interest earned and create a banking record in the child's name | Individual Taxpayer Identification Number (ITIN) if the child does not have an SSN yet; you can add it later |
| Proof of relationship (birth certificate, adoption decree, or guardianship papers) | To confirm you are authorized to open an account on the child's behalf | Court order, custody agreement, or letter from the court |
| Proof of address (utility bill, lease, or bank statement in your name) | Some banks require this; policies vary | Not always required; call ahead to confirm |
Frequently Asked Questions
Can I open a savings account for a newborn?
Yes, many credit unions and some banks allow it. You will need the child's Social Security number and proof of your relationship. Some institutions require you to be a member or existing customer. Call ahead to confirm the bank's policy, because age minimums vary widely.
What if the child's other parent objects to the account?
If you have legal custody or are the sole legal parent, you can open the account without the other parent's consent. If custody is shared, the other parent may have a claim to the money in the account. If you are unsure about your legal standing, consult a family law attorney before opening the account.
Can the child access the account before they turn 18?
That depends on the bank and the account type. Some banks let you add the child as an authorized user once they reach a certain age, usually 13 or 14, so they can see the balance and make deposits. Others keep the account under your control only. Ask the bank what options are available.
Do I have to put my own money in, or can I put the child's money in?
You can deposit either your money or the child's money. If the child has earned income from a job, that money can go into the account. Interest earned in the account is taxed in the child's name, not yours, which is one reason to open an account early.
What happens if I die before the child turns 18?
The account becomes part of your estate and is handled according to your will or your state's inheritance laws. If you want the money to go directly to the child, name them as a beneficiary on the account, or set up a trust. Talk to an estate planning attorney about the best way to protect money you are saving for a minor.