Yes, you can open a savings account for a minor — and most banks make it straightforward

You can open a savings account in your child's name at nearly every bank and credit union in the country. The account belongs to your child, but you control it as the parent or legal guardian until they reach the age of majority — usually 18, though some states set it at 19 or 21. The bank will require your identification and your child's Social Security number, and you'll both need to be present at the bank or complete the process online, depending on the institution.

The main reason to open an account for a minor is to start building their financial habits early. Money deposited into the account earns interest (though the rate is usually small), and your child can watch their balance grow. Some accounts also come with a debit card once your child is old enough, which teaches them how to spend from their own money rather than asking you for cash.

The process varies slightly by bank, but the basic requirements are the same everywhere: proof of your identity, your child's Social Security number, and an initial deposit (which can be as small as $1 at many institutions). Some banks waive the minimum deposit for minors' accounts.

Key Takeaways

  • You can open a savings account for your child at any bank or credit union, and you'll control the account until they reach the age of majority in your state.
  • You'll need your own government-issued ID, your child's Social Security number, and usually a small initial deposit to open the account.
  • Many banks offer accounts designed specifically for minors, often with lower or no monthly fees and educational tools to teach money management.
  • Once your child turns 18 or reaches the age of majority in your state, the account transitions to their sole control, though you can remain as a co-owner if the bank allows it.
  • Interest rates on minor savings accounts are typically low, but the account teaches your child how savings work before they manage larger amounts as adults.

What you'll need to bring or provide

To open an account, bring a government-issued photo ID (a driver's license or passport works) and your child's Social Security number. If your child doesn't have a Social Security number yet, you can request one from the Social Security Administration before opening the account, or some banks will help you explore for one during the account-opening process.

You'll also need to decide on an initial deposit. Most banks require a minimum — often $25 to $100 — but many waive this requirement for minors' accounts. A few banks let you open with $1 or no deposit at all. If you're opening the account online, you can usually transfer money from your own account when ready after the account is created.

Some banks ask for your child's school information or date of birth to confirm their age, but this is optional information and not required to open the account. If you're opening the account in person at a branch, bring your child along; most banks require the minor to be present, though a few allow parents to open accounts remotely.

Different account types for minors

Most banks offer a standard minor savings account, which works like any other savings account but with features designed for children. These accounts typically have no monthly maintenance fees, no minimum balance requirements, and no overdraft fees (since minors usually can't overdraw). Interest rates are the same as adult accounts — usually between 0.01% and 0.05% annually, depending on the bank and current economic conditions.

Some banks offer teen checking accounts that come with a debit card, online banking access, and sometimes a small monthly allowance feature that lets you set up automatic transfers. These accounts teach your teen how to manage a checking account before they open one on their own. A few banks pair checking accounts with savings accounts in a bundle.

Custodial accounts are a different structure, sometimes called UTMA or UGMA accounts (Uniform Transfers to Minors Act or Uniform Gifts to Minors Act). These are less common at regular banks but available at investment firms and some credit unions. They're designed for larger amounts of money — gifts from relatives, inheritance, or money you want to set aside for college — and they have tax advantages. However, the money legally belongs to your child once they reach the age of majority, even if you contributed it. A regular savings account gives you more control over when your child can access the money.

How the account works while your child is a minor

You have full control of the account. You can deposit money, withdraw money, set up automatic transfers, and monitor the balance online or through the bank's app. Your child can see the account balance if they have online access, and some banks let minors make deposits at ATMs or through mobile apps, but they cannot withdraw money or close the account without your permission.

The account earns interest, though the amount is small. If your child's account earns $10 in interest over a year, that interest is taxable income on your child's tax return. For most minors, this amount is so small that no tax is owed, but if your child has other income (from a job, for example), you may need to file a return. The bank will send you a 1099-INT form if the interest exceeds $10.

You can add money to the account whenever you want, and you can set up automatic transfers from your own account if you want to deposit a set amount each month. Some parents use this as a way to teach their child about saving — for example, depositing a portion of their allowance or birthday money into the account.

What happens when your child turns 18

At the age of majority in your state — 18 in most places, but 19 or 21 in a few — the account legally becomes your child's sole property. You no longer have the right to withdraw money or control the account, even if you opened it and funded it. Your child can close the account, spend the money, or leave it alone.

Before this happens, talk to your child about the account and what the money is for. If you want to remain involved after they turn 18, you can ask the bank to add you as a co-owner, but this requires your child's consent and signature. Some banks allow this; others do not. Check with your bank about their policy.

If you want to set aside money for a specific purpose — college, a car, a first apartment — and you want to may support your child can't spend it before then, a custodial investment account or a 529 college savings plan may be better options. These have legal restrictions on when the money can be withdrawn. A regular savings account has no such restrictions once your child reaches the age of majority.

Choosing between banks and credit unions

Banks and credit unions both offer minor savings accounts, and the process is nearly identical. The main differences are in fees, interest rates, and convenience. Large national banks like Chase, Bank of America, and Wells Fargo offer minor accounts at most branches, so you can open in person if you prefer. Online banks like Ally and Marcus offer accounts entirely through their websites, which can be faster but requires you to fund the account by transfer.

Credit unions often have lower fees and sometimes higher interest rates, but you have to be a member to open an account. Membership usually requires living or working in a specific area or belonging to a particular group (teachers, military members, employees of certain companies). If you're already a credit union member, their minor account may be a good choice.

Compare a few options by checking their websites for the interest rate, any monthly fees, minimum balance requirements, and whether they offer a debit card for teens. Most banks publish this information clearly. The difference in interest earned is usually small — a few dollars per year — so convenience and fees matter more than the rate.

Teaching your child about the account

Opening an account is only useful if your child understands what it is and why you opened it. Explain that the account is theirs, that money in it earns a small amount of extra money (interest) over time, and that they can watch the balance grow. Show them how to check the balance online or through an app, if the bank offers this.

If your child is old enough to understand, explain that money in a savings account is separate from money you spend on everyday things. You might set a goal together — "Let's save $100 by the end of the year" — and deposit money regularly to reach it. Some parents give their child a portion of their allowance or birthday money to deposit themselves, which makes the account feel more real.

As your child gets older, you can explain interest, how banks work, and why saving money matters. By the time they turn 18, they should understand that the account is theirs and what they can do with it.

Frequently Asked Questions

Can I open a savings account for my child if they don't have a Social Security number yet?

Yes. You can request a Social Security number from the Social Security Administration before opening the account, or you can ask the bank if they'll help you explore during the account-opening process. Some banks can issue a temporary number or allow you to add it later. Call your bank or visit their website to ask about their specific process.

What if I want to save money for my child but keep it separate from their control?

A regular savings account in your child's name gives them legal ownership once they turn 18. If you want to set aside money for a specific purpose and keep control of it longer, consider a custodial investment account (UTMA or UGMA), a 529 college savings plan, or straightforward keeping the money in your own account. Talk to your bank or a tax professional about which option fits your situation.

Can my child have more than one savings account?

Yes. Your child can have accounts at multiple banks, and you can open them all as the parent or guardian. Some families open one account for everyday savings and another for a specific goal like college or a car. There's no legal limit, though managing multiple accounts can become complicated.

Will opening a savings account for my child affect their credit score?

No. A savings account does not appear on a credit report and does not affect credit scores. Credit scores are based on borrowing and repaying loans, not on savings. Your child will build credit later when they take out their first loan or credit card.

What happens to the account if I pass away?

The account belongs to your child, so it becomes part of their assets. If your child is still a minor, a court-appointed guardian or the executor of your estate will manage it until your child reaches the age of majority. Name a guardian in your will to make this process clearer. Talk to a lawyer about how to structure your child's finances if you want to leave them money.