Yes, minors can open savings accounts, but an adult must co-own it

A minor — someone under 18 — cannot open a savings account alone. Banks require a parent or legal guardian to open the account with them and stay on it. This adult is called a custodian or co-owner, depending on the account type. The custodian has full access to the money and can withdraw it at any time, even without the minor's permission.

The reason banks do this is legal: minors cannot sign binding contracts, and a savings account is a contract between you and the bank. A parent or guardian signs on your behalf. Once you turn 18, you can convert the account to your own name alone, or open a separate account that belongs only to you.

Most banks offer savings accounts for minors. Some have special features like limited withdrawal rights for the adult, or tools that help teens learn about money. Others are plain savings accounts with a parent attached. The choice depends on what you and your parent want the account to do.

Key Takeaways

  • A parent or legal guardian must open a minor's savings account and remain on it as a co-owner or custodian.
  • The adult on the account can withdraw money without permission, so choose someone you trust to respect the money as yours.
  • You will need a Social Security number, proof of identity, and proof of address to open an account.
  • At 18, you can remove the adult from the account or move your money to an account in your name alone.
  • Some banks offer teen savings accounts with features like spending limits or savings goals, while others are standard accounts with an adult added.

What documents you need to bring

Both the minor and the adult need to bring identification. For the minor, this is usually a birth certificate, school ID, or state ID card. For the adult, a driver's license or passport works. Some banks accept other forms — ask your bank what they take.

You will also need a Social Security number for the minor. If the minor does not have one yet, you can get one from the Social Security Administration before opening the account, or some banks can help you explore at the same time.

Proof of address is the third piece. This can be a utility bill, lease, mortgage statement, or government mail addressed to the adult. It must be recent — usually from the last 60 days. If you do not have one, ask the bank what other documents they accept.

The difference between custodial and joint accounts

Banks use two main structures for minor accounts. A custodial account (sometimes called a Uniform Transfers to Minors Act account, or UTMA) is owned by the minor, but the adult manages it until the minor turns 18 or 21, depending on state law. Once that age arrives, the account automatically becomes the minor's alone — the adult has no say in what happens next.

A joint account is owned equally by both people. The adult and the minor can both withdraw money, and the account does not automatically change when the minor turns 18. Both owners stay on it unless one person removes themselves. Joint accounts are simpler to set up and more common at banks.

For a young child, custodial accounts make sense because they teach that the money belongs to the child, even though a parent manages it. For a teenager, a joint account is often easier because the teen can use the debit card and withdraw money without asking permission each time. Ask your bank which type they offer and which one fits what you want to do.

What happens when the minor turns 18

At 18, the minor becomes a legal adult and can own accounts without a co-owner. What happens to the existing account depends on its type. With a custodial account, the money becomes fully the young adult's, and the parent's role ends automatically. With a joint account, both people stay on it unless one of them goes to the bank and removes the other.

Many young adults choose to keep the joint account open because it is already set up and working. Others move the money to a new account in their name alone. There is no penalty either way — it is a choice between the two people on the account.

If the young adult wants to remove the parent, they go to the bank with ID and ask to remove the co-owner. If the parent wants to remove themselves, they can do the same. The bank will tell you the exact steps when you ask.

How to choose a bank for a minor's account

Start by checking whether your current bank offers accounts for minors. If you already have a checking account there, opening a savings account for your child is usually faster because the bank already has your information on file.

If you do not have a bank yet, or want to compare, look at three things: whether the account has a monthly fee (many do not), what the minimum balance is to open it (often zero), and whether there is a debit card. A debit card lets the teen withdraw money from ATMs and pay at stores without asking the parent each time, which is useful for teenagers learning to manage money.

Some banks and credit unions have accounts designed for teens with features like spending limits, savings goals, or parental controls. Others are plain savings accounts. Neither is better — it depends on whether those features matter to you. Read the account details on the bank's website or ask in person.

How much money can go into the account

There is no legal limit on how much a minor can save. You can deposit as much as you want, and the bank will not stop you. The only limits are the ones the bank sets — for example, some banks cap how much you can deposit per day at an ATM, but this applies to all customers, not just minors.

If you are depositing cash regularly, the bank may ask questions if you deposit more than $10,000 in a single transaction. This is a federal rule that applies to everyone, not a rule about minors. The bank is not accusing you of anything — they are required by law to report large cash deposits. As long as the money is yours and you can explain where it came from, there is no problem.

Interest earned on the savings counts as the minor's income for tax purposes. If the minor earned other income that year (from a job, for example), the parent may need to file a tax return for them. Talk to a tax professional if you are unsure.

Frequently Asked Questions

Can a minor open a savings account without a parent knowing?

No. A parent or legal guardian must be present and sign documents to open the account. The bank will not open an account for a minor without an adult co-owner. If a minor is in foster care or has a court-appointed guardian, that person can open the account instead of a parent.

What if the parent and minor disagree about spending the money?

The parent has legal control of the account and can withdraw money without the minor's permission. This is why it matters who you choose as the co-owner — it should be someone you trust. If you are a teen worried about this, talk to your parent about what the account is for and agree on rules before opening it.

Can a minor have more than one savings account?

Yes. A minor can have multiple savings accounts at different banks, or multiple accounts at the same bank. Each one needs a parent or guardian as co-owner. Some teens open one account for saving and another for spending money, which can help them see the difference.

Do I need a Social Security number to open a minor's account?

Yes, the minor needs a Social Security number. If the minor does not have one, you can get one from the Social Security Administration office, or some banks can help you explore during the account opening. It takes a few weeks to receive the number, so plan ahead if you do not have one yet.

What happens if the parent passes away?

The account becomes part of the parent's estate and goes through probate or inheritance laws in your state. The minor should talk to the other parent, a guardian, or a lawyer about what happens next. The bank can tell you what documents they need to transfer the account to a new guardian.