What you need to open an account for a child

A parent or legal guardian opens the account. The bank will ask for the child's Social Security number, date of birth, and address. You'll also need to show your own ID — a driver's license, passport, or state ID card. Some banks ask for a second form of ID from you as well.

The child does not need to be present. Many banks let you open the account online or by phone using just the documents you have at home. If you go in person, bring the child or not — the bank's requirement is your ID and the child's information, not the child's physical presence.

You do not need a minimum deposit to open most accounts for minors, though some banks set one. That amount is usually small — $25 to $100 — and you can withdraw it when ready after opening if you want. A few banks waive the minimum if you set up direct deposit.

Key Takeaways

  • You need your ID, the child's Social Security number, and the child's date of birth; the child does not have to be present.
  • Most banks offer custodial accounts where you control the money until the child reaches the age of majority, usually 18 or 21.
  • You can open an account online, by phone, or in person, and the process usually takes 10 to 20 minutes.
  • Some accounts come with a debit card for the child; others require you to request one separately or do not offer one at all.
  • The account type — custodial, joint, or savings-only — determines what the child can do with the money and when control transfers to them.

Custodial accounts versus joint accounts

A custodial account is the standard choice. You are the custodian, meaning you control all deposits, withdrawals, and spending until the child reaches the age of majority — usually 18, sometimes 21 depending on your state and the bank. The child's name is on the account, but they cannot withdraw money or close it without your permission. The account is held in the child's name for tax purposes, so interest earned is reported on their Social Security number.

A joint account has both names on it with equal rights. Either of you can withdraw money or close the account. Joint accounts are less common for young children because they give the child full control before they may be ready for it. Banks sometimes use "joint" and "custodial" interchangeably in their marketing, so ask directly: can the child withdraw money without your permission?

Some banks also offer teen accounts — a middle ground where the child gets a debit card and can make purchases, but you can set spending limits and see all transactions. The child still cannot withdraw cash or close the account. These accounts are designed for children around 13 and up who are ready to spend money but not manage it entirely on their own.

What happens when the child turns 18

At the age of majority — 18 in most states, 21 in a few — the custodial account automatically converts to a regular account in the child's name alone. You lose access. The child now owns the money and can withdraw it, spend it, or close the account without asking you.

Some banks send a notice before the conversion happens, giving you time to discuss what comes next. Others convert silently. Contact your bank now to ask what their process is, so you are not surprised when your child turns 18 and you suddenly cannot see the account.

If you want to keep some control after 18 — for instance, if the child is still in school or not yet financially independent — you have options. You can move the money to a new joint account that requires both signatures for large withdrawals. You can also straightforward talk to your child about how to manage the money. But legally, once the account converts, the decision is theirs alone.

Debit cards and spending controls

Not all accounts for minors come with a debit card. Some banks issue one automatically; others require you to request it. A few savings-only accounts do not offer debit cards at all — the child can only access money through you or at a teller window.

If the account does include a debit card, you can usually set limits on how much the child can spend per day or per transaction. You can also turn the card on and off from your phone or online banking. Some banks let you block certain types of purchases — for instance, no gas station charges or no online shopping — though this varies by bank.

The debit card is tied to the account you opened, so it draws from the same balance you control. The child cannot overdraft unless you explicitly allow overdraft protection, which most banks do not enable by default for minors.

Where to open the account

You can open an account at a traditional bank, a credit union, or an online bank. Each has trade-offs. Traditional banks have physical branches where you can deposit cash and speak to someone in person. Credit unions often have lower fees and better rates, but you must be a member — membership is usually free but requires living or working in a certain area or having a family member who is already a member. Online banks have no branches but often have no monthly fees and higher interest rates on savings.

For a minor's account, the choice often depends on whether you want the child to visit a branch. If your child is young, you may prefer a bank with branches so you can deposit cash without going online. If your child is a teenager and you want them to learn to use ATMs and talk to tellers, a branch-based bank teaches that. If you are comfortable managing everything online, an online bank works just as well.

Compare the monthly fee (many accounts for minors have none), the interest rate on savings, whether a debit card is included, and what spending controls are available. A few banks market accounts specifically for minors with features like automatic savings or financial literacy tools, but these are not necessary — a basic savings account works fine.

The process process step by step

If you are opening the account online, go to the bank's website and look for "open an account" or "minors' accounts." You will enter your information, the child's name and Social Security number, and the child's date of birth. You will upload a photo of your ID or answer security questions to verify your identity. The bank will ask how you want to fund the account — by transferring money from another bank account, mailing a check, or depositing cash at a branch.

If you are opening the account in person, bring your ID and the child's Social Security number (or a document showing it, like a birth certificate). Tell the bank representative you want to open a custodial account for a minor. They will fill out a form, verify your ID, and ask how much you want to deposit to start. The account is usually open within 10 to 20 minutes, and you can use it when ready.

If you are opening by phone, call the bank's customer service number and ask to open a minor's account. They will verify your identity by asking security questions or requesting you to upload your ID later. They will take the child's information over the phone and ask how you want to fund the account. You will receive a confirmation number and can usually start using the account the same day.

Frequently Asked Questions

Can I open an account for someone else's child?

No. Only a parent or legal guardian can open a custodial account. If you are a grandparent, aunt, or other relative, you can ask the parent to open the account and then give you access, or you can open a joint account if the parent consents. Some banks allow a legal guardian who is not a parent — for instance, if you have guardianship through the court — but you will need to show the guardianship paperwork.

What if the child does not have a Social Security number yet?

You can explore for one at the Social Security Administration office or online at ssa.gov. The process takes about two weeks. Some banks will let you open an account without a Social Security number if you provide an Individual Taxpayer Identification Number (ITIN) instead, but this is rare. It is easier to get the Social Security number first.

Do I need to report the account to the IRS?

No, you do not file anything with the IRS to open the account. The bank reports interest earned on the account to the IRS using the child's Social Security number. If the interest is under $1,500 per year, you may not owe taxes on it. If it is higher, you may need to file a tax return for the child. Ask a tax professional about your specific situation.

Can the child use the account to build credit?

No. A custodial savings account does not build credit because it is not a loan or line of credit. The child's credit history does not start until they open a credit card, take out a loan, or become an authorized user on someone else's credit card account. A savings account teaches money management but does not affect credit scores.

What if I want to close the account before the child turns 18?

You can close it anytime. The bank will give you the balance as a check or transfer it to another account. If the child is old enough to understand, it is worth explaining why — for instance, if you are moving the money to a different bank or consolidating accounts. The child cannot stop you from closing a custodial account.