The age requirement depends on whether you open it alone or with a parent

You must be at least 18 years old to open a high yield savings account by yourself. If you are under 18, you can open one with a parent or guardian as a joint account holder — meaning both of you own it together and can access the money.

A high yield savings account is a bank account that pays you interest on the money you keep in it. The interest rate is higher than what a regular savings account offers, so your money grows faster just by sitting there. Most high yield savings accounts are offered by online banks rather than brick-and-mortar branches.

The key difference between opening alone and opening with a parent is control: if you open it solo at 18, only you can withdraw money or close the account. If you open it as a minor with a parent, your parent can also access and move money, though many banks let you set it up so you manage it day-to-day.

Key Takeaways

  • You must be 18 to open a high yield savings account in your own name; under 18, you need a parent or guardian on the account.
  • Joint accounts with a parent let you earn interest on your money while your parent retains legal control until you turn 18.
  • Most online banks that offer high yield savings accounts do not have physical branches, so you open and manage everything online.
  • When you turn 18, you can convert a joint account to your own or open a separate account and transfer the money over.

Opening a high yield savings account as a minor with a parent

If you are under 18, you and your parent will open what is called a custodial account or joint account. The exact name varies by bank, but the concept is the same: your parent is the legal account holder, and you are listed as a minor on the account.

To open one, you will need your parent to gather their own documents (usually a government ID and Social Security number) and yours (your Social Security number and sometimes a birth certificate or school ID). Your parent will start the process online or in person, depending on the bank, and add you to it. Some banks let you sign in to the account yourself once it is open; others require your parent to manage it until you turn 18.

The interest rate you earn is the same whether you are 16 or 17 — the bank does not reduce it for minors. What changes is who can make decisions about the account. Your parent can typically withdraw money, close the account, or change settings without asking you, though many families use these accounts as a way for teens to learn to save while keeping parental oversight.

What happens when you turn 18

When you reach 18, the account does not automatically convert. Instead, you have options. Some banks let you remove your parent from the account and take full control yourself — you will need to contact the bank and provide proof of your age (usually a government ID). Other banks require you to close the joint account and open a new one in your name only.

If you want to keep the same account and the same interest rate, ask the bank about their process for converting a custodial account to an adult account before you turn 18. This way you are not scrambling on your birthday. If you decide to move your money to a different bank's high yield savings account, you can transfer the balance — the bank you are moving to can usually handle this for you.

Which online banks offer high yield savings for minors

Not every bank that offers high yield savings accounts accepts minors, and the ones that do have different rules. Some require a parent to be a joint owner; others let a parent open a custodial account where the teen is the sole owner but the parent has legal control. A few do not offer accounts for minors at all.

Banks that commonly offer accounts for minors include Ally Bank, Marcus by Goldman Sachs, and American Express Personal Savings, though you should check their current policies because these change. When you are comparing banks, look at three things: the interest rate (which changes frequently), whether they charge monthly fees (most do not), and whether they let you manage the account online or require your parent to do it.

Your parent's bank might also offer a high yield savings account for minors, even if it is not their main product. It is worth asking, because opening with a bank your parent already uses can make the process simpler.

How interest works in a high yield savings account

Interest is money the bank pays you for letting them hold your money. The amount depends on the annual percentage yield, or APY — this is the percentage of your balance the bank will pay you over one year. If you have $1,000 in an account with a 4.5% APY, the bank will pay you roughly $45 in interest over 12 months (the exact amount depends on how often they calculate it, usually daily or monthly).

The APY changes based on what the Federal Reserve does with interest rates, so the rate your bank offers today might be different in three months. This is not something you control — it happens automatically. What you do control is how much money you keep in the account, because more money earning interest means more interest paid to you.

Interest is added to your account automatically, usually monthly or daily depending on the bank. You do not have to do anything to earn it; it just happens as long as your money stays in the account.

Why a high yield savings account makes sense for teens

A regular savings account at a traditional bank might pay you 0.01% APY or less — meaning $1,000 would earn about 10 cents per year. A high yield savings account might pay 4% or higher, meaning the same $1,000 earns $40 per year. Over time, especially if you are saving for something specific like a car or college, that difference adds up.

High yield savings accounts are also safer than keeping money in cash or under a mattress. Your money is FDIC insured, which means if the bank fails, the government guarantees you will get your money back (up to $250,000 per account). You can also withdraw your money whenever you need it — there is no penalty for taking it out, unlike some other savings products.

The main trade-off is that your money is not as straightforward to spend. Because the account is online and separate from a checking account, you have to transfer money to your checking account first before you can use it. This built-in delay can actually help you avoid impulse purchases.

Frequently Asked Questions

Can I open a high yield savings account at 16 or 17?

No, not by yourself. You can open one with a parent or guardian as a joint or custodial account. The exact rules depend on the bank — some allow minors as young as 13 with a parent, while others require you to be 16 or older. Check with the specific bank you are interested in.

Will my parent be able to see how much money I have?

Yes, if you open a joint or custodial account, your parent will have access to the account and can see the balance. Some banks let you set up online access so you can check it yourself, but your parent retains the legal right to view and manage it. This is part of why these accounts are often used to teach teens about saving.

What is the difference between a joint account and a custodial account?

In a joint account, both you and your parent are listed as owners and can both access the money. In a custodial account, you are the owner but your parent is the custodian — they have legal control until you turn 18, even though it is technically your money. The practical difference varies by bank, so ask when you open the account.

Can I move my money to a different bank after I turn 18?

Yes. Once you convert the account to your own name or open a new account at 18, you can transfer your balance to any other bank. The process usually takes three to five business days. You do not lose any interest during the transfer.

Do I have to keep money in a high yield savings account, or can I withdraw it anytime?

You can withdraw it anytime without penalty. There is no minimum balance you have to keep, and no fee for taking money out. The only catch is that some banks limit how many withdrawals you can make per month (usually six), though most have removed this limit in recent years.