Yes, minors can have bank accounts in their own name, but an adult must open and manage it

A minor — someone under 18 in most states — can own a bank account that belongs to them alone. The account is in their name, their Social Security number, and their credit history (if the bank reports it). But here is the catch: a parent or legal guardian must be the one to open it, and they have legal access to the account until the minor turns 18.

This is different from a joint account where both names appear on the paperwork. A custodial account or minor account is solely the child's property, but the adult acts as custodian — they can see the balance, make deposits and withdrawals, and manage it on the child's behalf. Once the minor reaches 18, the account converts to a standard adult account and the parent's access ends.

Banks offer these accounts because they serve a real purpose: they let young people build a banking history, learn to manage money, and have a safe place to keep earnings from a job or gifts. The account also keeps money separate from the parent's finances, which matters for financial aid calculations later and for teaching independence.

Key Takeaways

  • A minor's bank account is owned by the child but opened and managed by a parent or legal guardian until age 18.
  • The account appears on the minor's credit history if the bank reports it, which can help build credit early.
  • Most banks require the adult to bring identification and the minor's Social Security number to open the account in person.
  • The account automatically converts to a standard adult account when the minor turns 18, and the parent's access ends.
  • Some banks offer teen checking accounts with features like spending limits or parental controls, while others offer basic savings accounts.

What you need to bring to open a minor's account

The parent or guardian brings their own government-issued ID — a driver's license or passport — plus the minor's Social Security number. Some banks also ask to see the minor's birth certificate or school ID, though this varies. You do not need to bring the minor with you to open the account, though some banks prefer it.

If you do not have the minor's Social Security number yet, you can request one from the Social Security Administration before you go to the bank. The process takes a few weeks by mail or can be faster in person at a local Social Security office.

Types of accounts available for minors

Banks offer two main kinds of accounts for minors. A custodial savings account is the simpler option — it is a basic savings account with a low or no minimum balance, and it earns a small amount of interest. The focus is on saving rather than spending.

A teen checking account (or youth checking account) includes a debit card and check-writing ability, so the minor can make purchases and withdraw cash. Many teen checking accounts come with parental controls — the parent can set daily spending limits, get alerts when the card is used, or block certain types of transactions. Some banks charge a monthly fee for teen accounts; others waive the fee if the account stays above a certain balance or if the parent has an account at the same bank.

A few banks also offer custodial investment accounts (called Uniform Transfers to Minors Act accounts, or UTMA accounts), which let parents or guardians invest money on behalf of the minor. These are less common and are usually opened at investment firms rather than traditional banks. They have tax implications and are typically used for larger sums meant for long-term goals like college.

How the account works once it is opened

The minor can deposit money into the account — from a job, birthday gifts, or allowance — and withdraw it using the debit card (if it is a checking account) or by visiting the bank. The parent can also deposit money and make withdrawals on the minor's behalf. Both the parent and the minor can see the balance and transaction history, though the details depend on the bank's online banking setup.

If the account earns interest, it is taxed as the minor's income, not the parent's. This is actually an advantage for tax purposes in some cases, because the minor's tax bracket is usually lower. The bank will send a 1099 form (or similar tax document) to the minor's Social Security number at tax time.

The parent remains the legal owner of the money until the minor turns 18, which means the parent can prevent withdrawals or close the account if needed. However, the account is still the minor's property — the parent cannot legally use the money for their own expenses, even though they have access to it.

What happens when the minor turns 18

On the minor's 18th birthday, the account automatically converts to a standard adult account. The parent's name is removed, and the parent loses access. The young adult now has full control and responsibility for the account. Some banks send a notice before this happens; others do it automatically.

If the account has been reported to the credit bureaus, the minor will have a credit history by age 18. This can be helpful when they later explore for a credit card, car loan, or apartment lease — lenders see that they have a track record of managing an account responsibly.

Accounts for minors without a Social Security number

If the minor is a non-citizen or does not yet have a Social Security number, some banks will open an account using an Individual Taxpayer Identification Number (ITIN) instead. An ITIN is a nine-digit number issued by the IRS to people who need to file taxes but do not have a Social Security number. You can request an ITIN from the IRS by mail.

Not all banks accept ITINs, so you may need to call ahead or visit a few banks to find one that does. Community banks and credit unions are sometimes more flexible than large national banks on this point.

Common reasons parents open accounts for minors

Parents often open accounts to teach money management — the minor can see their balance grow, practice budgeting, and learn the difference between saving and spending. An account also gives a young person a safe place to keep earnings from a part-time job or money from relatives, rather than keeping cash at home.

For teenagers, a checking account with a debit card can be safer than carrying large amounts of cash, and it gives parents visibility into spending without having to hand over cash each time. For younger children, a savings account teaches the concept of saving toward a goal.

Some parents also open accounts early to build the child's credit history. If the bank reports the account to the credit bureaus, the minor will have a longer credit history by the time they turn 18, which can help them get better interest rates on loans later.

Frequently Asked Questions

Can a minor open a bank account without a parent?

No. A parent or legal guardian must open the account. Some banks allow minors to open accounts online with a parent's consent, but the parent must still verify their identity and sign the paperwork. A minor cannot walk into a bank alone and open an account.

Will the minor's bank account affect their financial aid for college?

Yes, it may. Money in a minor's own account is counted as the minor's asset on the Free process for Federal Student Aid (FAFSA), which can reduce the amount of aid they receive. Money in a parent's account is counted differently. If you are concerned about this, speak with a financial aid advisor at the college before opening the account.

Can the parent use the money in the minor's account for their own bills?

Legally, no. The money belongs to the minor, even though the parent has access. Using it for the parent's own expenses is a misuse of the custodial relationship. However, the parent can use the money for expenses directly related to the minor's care — food, clothing, education — without violating the arrangement.

What happens if the minor's account goes negative?

If the minor overdrafts the account (spends more than the balance), the bank will charge an overdraft fee, usually between $25 and $35. Some teen checking accounts have overdraft protection, which prevents the account from going negative by declining the transaction instead. Ask the bank about this feature when you open the account.

Can a minor have more than one bank account?

Yes. A minor can have multiple accounts at different banks, or multiple accounts at the same bank (for example, a checking account and a savings account). Each account is separate and appears on the minor's credit history. There is no legal limit, though the parent should manage them to avoid confusion.