What you need to do it, and what happens next
To open a bank account for a child under 18, you will go to a bank or credit union with the child, bring proof of identity for both of you, and sign paperwork that makes you the account owner or co-owner. The child's Social Security number goes on the account. Most banks let you open an account for a child as young as newborn, though some have a minimum age of 13 if the child will use a debit card. The whole process takes 15 to 30 minutes in person, or you can do it online with some banks if you already have an account there.
What happens after opening depends on the account type. A custodial account (also called a UTMA or UGMA account) is owned by you as the parent until the child reaches the age of majority — usually 18 or 21, depending on your state. A joint account is owned by both of you from the start, and the child can use it when ready. A teen account is designed for older children and usually comes with a debit card and spending limits you can set. The money in the account belongs to the child, but you control it until they are old enough to manage it themselves.
Key Takeaways
- You will need your ID, the child's Social Security number, and proof of address to open an account at most banks.
- Custodial accounts transfer to the child automatically when they reach the age of majority in your state, usually 18 or 21.
- Joint accounts let you and the child both access the money, but you remain responsible for any overdrafts or fees.
- Teen accounts come with debit cards and let you set daily spending limits, making them useful for teaching money management.
- Opening an account online is faster if your bank offers it, but you may need to verify identity in person first.
Documents you will bring to the bank
Bring a government-issued photo ID for yourself — a driver's license, passport, or state ID card. Bring the child's Social Security number (you can look it up on their Social Security card or birth certificate). Bring proof of your current address, which can be a utility bill, lease, mortgage statement, or recent bank statement dated within the last 60 days. Some banks also ask for the child's birth certificate, though not all do.
If you are opening the account online, you will upload photos of these documents instead of showing them in person. Some banks let you complete the whole process on your phone; others require you to verify your identity in a video call with a bank employee. Check your bank's website before you go to see what they need.
The difference between custodial, joint, and teen accounts
A custodial account is held in your name as the custodian, with the child named as the beneficiary. You control all the money and make all the decisions about it. When the child reaches the age of majority in your state — 18 in most states, 21 in a few — the account automatically transfers to them. They then own it outright and you have no further control. This type of account is useful if you want to set money aside for the child but do not want them to touch it yet.
A joint account is owned by both you and the child from the start. Either of you can withdraw money, make deposits, or close the account. The bank treats you both as owners, so if the account goes negative, the bank can pursue either of you for the overdraft. Joint accounts do not automatically transfer at any age — you would need to change the account structure when the child is older. This type works well if you want the child to learn to use banking services while you keep an eye on the account.
A teen account is a joint account designed specifically for teenagers, usually ages 13 and up. It comes with a debit card and online banking access. You can set daily spending limits, turn the card on or off, and see every transaction. When the child turns 18, you can convert it to a regular account or remove yourself as a co-owner. Teen accounts are the most hands-on option for teaching money management.
What banks and credit unions offer for children
Most major banks — Chase, Bank of America, Wells Fargo, Citibank — offer custodial or joint savings accounts with no minimum balance. Some charge a monthly fee ($5 to $10) unless you keep a certain amount in the account or set up direct deposit. A few waive fees for accounts under $500. Credit unions often have lower or no fees and may offer slightly higher interest rates on savings, though the difference is usually small.
Teen accounts are more common now than they were five years ago. Banks like Chase, Bank of America, and Ally offer them, as do many credit unions. These accounts usually come with a debit card, online banking, and parental controls. Some let you set spending limits by category (groceries, entertainment, gas) rather than just a daily total. Interest rates on teen savings accounts are typically 0.01% to 0.05%, which is low but better than keeping cash at home.
If you already bank somewhere, check what they offer before you go. Many banks let you open a child's account online if you already have an account with them, which is faster than starting from scratch.
When the account transfers to the child
If you open a custodial account, it transfers automatically on a specific date set by your state law. In most states, that date is the child's 18th birthday. In California, Delaware, and a few others, it is 21. You do not have to do anything — the bank handles the transfer. The child will own the account outright and you will have no access to it.
This can be a surprise if you were not expecting it. Some parents open custodial accounts thinking they will have control until the child is older, then find out the account is no longer theirs on the child's 18th birthday. If you want to keep control longer, open a joint account instead, or plan to move the money before the transfer date. You can also talk to the bank about converting the account to a different type before the child reaches the age of majority.
How to teach your child to use the account
Start by explaining what the account is for. If it is a savings account, explain that money in the bank earns a tiny bit of interest (though you can be honest that it is not much). If it is a checking account with a debit card, show them how to use the card, how to check their balance online, and what happens if they spend more than they have. Let them make small deposits and withdrawals so they see how it works.
If you have set spending limits on a teen account, explain why. Show them their transaction history so they can see where their money went. Let them make mistakes with small amounts — a $5 overdraft fee teaches a lesson that a $50 one does not. If the account is a joint account, let them know you can see all their transactions, and explain why you are watching.
As they get older, gradually give them more control. By age 16 or 17, they should be able to manage the account mostly on their own, with you checking in occasionally. By 18, if the account is joint, you can remove yourself as a co-owner and let them take over completely.
Frequently Asked Questions
Can I open a bank account for a newborn?
Yes. Most banks let you open a custodial savings account for a child of any age. You will need the child's Social Security number, which you can get from their Social Security card or birth certificate. The account will be in your name as custodian until the child reaches the age of majority.
What if I do not have a Social Security number for the child yet?
You can get one from the Social Security Administration before you open the account, or you can ask the bank if they will let you add it later. Some banks will open an account with an ITIN (Individual Taxpayer Identification Number) if the child does not have a Social Security number yet. Call your bank to ask what they accept.
Can my child use the debit card if I open a teen account?
Yes, that is the main point of a teen account. The child gets a debit card and can use it to make purchases or withdraw cash. You can set daily spending limits and turn the card off if needed. The child can also use online banking to check their balance and see their transactions.
What happens to the account if I die?
If you have a custodial account, the money belongs to the child, not to your estate. It will not go through probate. If you have a joint account, the money usually passes to the child automatically, though this depends on how the account is titled. Talk to your bank about what happens in your specific situation, and consider naming a guardian for the child in your will in case they are still a minor.
Can I move the account to a different bank later?
Yes. You can close the account at one bank and open it at another. The process is the same as opening a new account — bring your ID, the child's Social Security number, and proof of address. If the account has money in it, you can transfer it electronically (usually takes 3 to 5 business days) or withdraw it and deposit it at the new bank.