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

A minor — anyone under 18 — cannot open a bank account alone. Banks require a parent or legal guardian to open the account with them and remain on it. This adult is called a custodian or joint account holder, depending on the bank's structure. The custodian has full access to the account and legal responsibility for it, while the minor can deposit and withdraw money, usually through a debit card or in person at a branch.

The account itself works like any savings account: money sits there, earns a small amount of interest (the rate varies by bank), and the minor can access it when needed. The main difference from an adult account is that the custodian can see all transactions and can close the account if necessary. Once the minor turns 18, they can convert it to an account in their name alone, though some banks do this automatically.

Key Takeaways

  • A parent or legal guardian must open the account with the minor and stay on it as a co-owner.
  • Most banks allow minors to use a debit card to withdraw money and make purchases, though some set daily limits.
  • The adult on the account can see all transactions and has the right to close it at any time.
  • When the minor turns 18, the account can usually be converted to a standard adult account without closing it.
  • Some banks offer accounts specifically designed for teens with features like spending controls or financial education tools.

What you need to bring to open the account

The minor and the custodian must go to the bank together in person. Bring a government-issued photo ID for the adult — a driver's license or passport. For the minor, bring a birth certificate or school ID; some banks accept a state ID even if the minor is under 16. You will also need proof of address, usually a recent utility bill or lease in the custodian's name.

Some banks ask for a Social Security number for both the minor and the adult. If the minor does not have one yet, you can request one from the Social Security Administration before opening the account, or ask the bank whether they will open the account without it and add it later. A few banks will proceed without it, but most require it.

How the account works once it is open

The minor receives a debit card linked to the account. They can use it to buy things in stores, withdraw cash from ATMs, and make online purchases. The custodian receives statements or can check the account online and sees every transaction. Some banks set daily withdrawal limits for minors — for example, $500 per day — to reduce the risk of fraud or overspending.

The minor can deposit money by using the debit card at an ATM, handing cash to a teller at a branch, or having someone transfer money into the account. Interest accrues slowly; the rate depends on the bank and the account type, but most savings accounts for minors earn less than 1% per year. The custodian can add or remove money from the account at any time without the minor's permission.

Differences between custodial accounts and joint accounts

Banks structure minor accounts in two ways. A custodial account (sometimes called a UTMA or UGMA account) is legally owned by the minor, but the custodian manages it until the minor reaches the age of majority — usually 18, though it varies by state. Once that age is reached, the account and all money in it legally belong to the minor, and the custodian's control ends.

A joint account is owned equally by both the minor and the custodian. Both names appear on the account, and either person can withdraw all the money. The account does not automatically change when the minor turns 18; it remains a joint account unless one person removes themselves. Joint accounts are simpler to set up and more common at everyday banks, while custodial accounts are more formal and often used when larger sums are involved or when a grandparent or other relative is setting aside money for a child's future.

Ask the bank which type they offer. For a first savings account, a joint account is usually the right choice because it is straightforward and the minor can transition to a solo account easily.

What happens when the minor turns 18

The process depends on the account type and the bank. With a joint account, the minor can ask the bank to remove the custodian's name and convert it to a standard adult account. This usually takes a few days and requires the minor to sign paperwork in person or online. The custodian does not have to agree; the minor can do this unilaterally once they are 18.

With a custodial account, the money legally becomes the minor's property at the age of majority, but the bank may require paperwork to reflect that change. Some banks do this automatically; others ask the now-adult account holder to come in and sign new documents. Either way, the custodian's control ends, and the account is now the sole property of the young adult.

Banks and credit unions that offer accounts for minors

Most major banks offer savings accounts for minors, including Chase, Bank of America, Wells Fargo, and Citibank. Credit unions — member-owned financial institutions — often have accounts for minors as well and sometimes offer better interest rates or lower fees. To find a credit union near you, search the CO-OP network or the Alliant Credit Union locator online.

Some banks market accounts specifically to teens and include features like spending controls (the custodian can set limits on how much the minor can spend per day), financial education tools, or no monthly fees. Examples include Greenlight, Fidelity Youth Account, and accounts offered by some online banks. These are worth exploring if you want more oversight or if you want the minor to learn about budgeting, but a basic account at any bank works just as well.

Frequently Asked Questions

Can a minor open a savings account without a parent or guardian?

No. Banks require a parent, legal guardian, or sometimes a grandparent or other adult relative to open the account with the minor and remain on it. The adult must be present in person and provide identification.

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

The custodian has legal control of the account and can withdraw money or close it without the minor's permission. If the minor is old enough to understand, it is best to discuss spending rules beforehand. Once the minor turns 18, they have full control and the custodian cannot access it.

Does a minor's savings account affect their credit score?

No. Savings accounts do not appear on credit reports. Only loans, credit cards, and payment history affect credit scores. A savings account is a good way for a minor to build the habit of saving, but it does not build credit on its own.

Can a minor have more than one savings account?

Yes. A minor can have accounts at multiple banks, each with a different custodian if needed. However, the custodian on each account has full access to that account, so it is important to be clear about who controls what.

What happens if the custodian dies or becomes unable to manage the account?

The account does not automatically close. The bank will likely freeze it until a new legal guardian is named or until the minor turns 18. Contact the bank when ready if this happens; they can explain the steps to transfer control or manage the account during the transition.