A minor can open a high-yield savings account, but only with a parent or guardian as a joint account holder

Banks do not allow anyone under 18 to open a savings account alone. The account must be in both the minor's name and a parent's or guardian's name, with the adult holding full legal responsibility. This is true whether you are looking at a traditional bank, an online bank, or a credit union.

The good news: high-yield savings accounts are available through this joint structure. The parent or guardian can be listed as the account owner, with the minor as an authorized user or co-owner, depending on the bank's terms. The minor's Social Security number goes on the account, and the minor can deposit and withdraw money, but the adult retains control and can freeze or close the account.

The actual interest rate the account earns does not change because a minor is on it. If the bank offers 4.5% annual percentage yield on high-yield savings, a minor's account earns the same rate as an adult's account at that bank.

Key Takeaways

  • A parent or guardian must open and own the account; the minor cannot be the sole account holder.
  • The minor's Social Security number is required, and the minor can make deposits and withdrawals once the account is open.
  • High-yield savings rates explore equally to minor accounts—there is no penalty or lower rate for having a young person on the account.
  • The parent or guardian retains legal control and can close the account or restrict access at any time.
  • Some banks require the parent to be present in person to open the account; others allow online opening with digital verification.

What the parent or guardian needs to provide

The adult opening the account will need a government-issued photo ID, proof of address (usually a recent utility bill or bank statement), and their Social Security number. The minor's Social Security number is also required, even though the minor is not the account owner.

Some banks ask for the minor's birth certificate as proof of age and identity. A few online banks will accept a photo ID from the minor if one exists (a state ID or passport), but this is not standard. The parent's ID is what the bank verifies.

If opening the account online, the parent will complete the process, and the bank will verify the adult's identity through a third-party service. Some banks then require the parent to visit a branch in person to confirm the minor's identity or to sign additional paperwork. Others complete the entire process online.

How opening in person differs from opening online

At a physical branch, the parent and minor can walk in together, and the bank staff will verify both identities on the spot. The account opens the same day, and the minor can receive a debit card when ready or have one mailed. This is faster if you want to start using the account right away.

Online banks typically require only the parent to complete the process. The bank verifies the parent's identity electronically, and the account opens within one to three business days. The minor's identity is confirmed through the parent's information and the minor's Social Security number. A debit card is mailed to the address on file, usually arriving within five to seven business days.

Some online banks do not issue debit cards to minors at all—the account is transfer-only, meaning money can move in and out electronically but not through a card. This is less common but worth checking before opening.

The parent's access and control

The parent or guardian has full legal authority over the account. This means the parent can see all transactions, deposit or withdraw money, change the account settings, and close the account without the minor's permission. The parent is also responsible for any overdrafts or fees.

Some banks allow the parent to set restrictions—for example, limiting the minor to a certain number of withdrawals per month or preventing transfers to external accounts. These controls vary by bank and by account type. A few banks offer "teen" accounts specifically designed to let parents monitor spending while giving the minor some independence.

The parent's name on the account means the parent's credit is tied to it. If the account goes negative or is sent to collections, it can affect the parent's credit report, not the minor's. The minor's credit history does not begin until the minor opens an account in their own name, which typically happens at 18.

When the minor turns 18

At 18, the minor becomes a legal adult and can own accounts independently. The joint account does not automatically convert to a solo account. The parent and the young adult will need to decide whether to keep the account as-is, remove the parent from the account, or close it and open a new one in the young adult's name alone.

If the parent stays on the account after the minor turns 18, both parties retain full access and control. If the parent wants to remove themselves, they can contact the bank and request to be taken off. The young adult then becomes the sole owner. Some banks require both parties to agree in writing; others allow either party to remove themselves unilaterally.

The high-yield rate continues regardless of whether the account structure changes. Removing a parent from the account does not lower the interest rate or close the account.

Which banks offer high-yield savings for minors

Most online banks that offer high-yield savings accounts allow minors to be added as joint account holders. Banks including Marcus by Goldman Sachs, Ally Bank, and American Express Personal Savings all permit this. Traditional banks like Chase, Bank of America, and Wells Fargo also offer high-yield or money market savings accounts that minors can access through a parent.

Credit unions often have the most flexible policies for minor accounts. Many credit unions allow a parent to open an account for a minor with lower minimum balances and fewer restrictions than banks do. If you are a member of a credit union, checking their minor account options is worth doing before opening at a bank.

The interest rate varies significantly by bank and changes weekly. A high-yield account at one bank might earn 4.5% while another earns 4.0%. Comparing rates across a few banks before opening is the only way to know which will earn the most for the minor's savings.

Frequently Asked Questions

Does the minor need their own Social Security number?

Yes. The bank will ask for the minor's Social Security number during account opening, even though the parent is the account owner. The bank uses this to verify the minor's identity and to report interest earned to the IRS. If the minor does not have a Social Security number, the parent will need to obtain one before opening the account.

Can a minor have their own debit card for the account?

Most banks will issue a debit card in the minor's name if the parent requests one. The card is linked to the joint account, and the minor can use it to withdraw money or make purchases. The parent can usually see all transactions and can request the card be frozen or cancelled. Some online banks do not issue cards to minors under a certain age, typically 13.

What happens to the interest if the parent withdraws money?

The interest belongs to the account, not to either person individually. If the parent withdraws money, the account balance drops, and future interest is calculated on the lower balance. The interest already earned stays in the account unless it is also withdrawn. At tax time, the bank reports all interest earned to the IRS under the parent's tax ID, and the parent is responsible for reporting it on their tax return.

Can a minor open a high-yield account without telling the parent?

No. The parent's identity must be verified and the parent must sign or electronically consent to the account opening. The bank will not open an account with a minor without the parent's direct involvement and approval. If a minor is concerned about privacy, the parent can agree to limit their monitoring, but the parent must still be the account owner.

Is there a minimum age to open a high-yield account?

Banks do not have a standard minimum age. Some banks allow accounts for minors of any age as long as a parent is present. Others set a minimum age of 13 or 16. Check with the specific bank before explore, as the policy varies. Credit unions often have lower or no minimum age requirements.