Banks That Allow Minors to Open Accounts
Short answer
Many U.S. banks and credit unions allow minors to open bank accounts with a parent or guardian as a joint owner or custodian. These accounts help minors learn money management while keeping control with an adult. Examples include big banks like Chase, Wells Fargo, and Bank of America, plus local credit unions that offer youth accounts tailored for young savers.
What does it mean for a minor to open a bank account?
A minor bank account is a deposit account—often a savings or checking account—opened for someone under 18 years old, typically with an adult co-owner or custodian involved. Since minors cannot legally enter contracts, banks require a parent or guardian to co-sign or manage the account until the child reaches legal adulthood. This arrangement allows the minor to deposit money, make transactions, and learn financial responsibility with adult oversight.
For example, imagine a 13-year-old receives money from birthday gifts and wants to save it. The parent accompanies the child to the bank, where they open a joint savings account. The child can deposit money earned from chores, track the balance online, and gradually learn how to budget. The parent monitors activity and guides decisions. When the child turns 18, the account converts to a standard individual account, giving full control to the young adult.
This setup balances safety and learning by protecting the minor’s money while encouraging financial literacy.
How do banks typically allow minors to open accounts?
Banks offer special youth or minor accounts with features tailored for young customers. These accounts often have lower fees, reduced or no minimum balance requirements, and parental controls. To open one, the parent or guardian usually must provide identification, Social Security numbers for both themselves and the minor, and sometimes proof of address.
The process generally involves:
- Visiting a bank branch or applying online with the minor present.
- Providing required documents for both adult and minor.
- Signing the account agreement as a joint owner or custodian.
- Depositing the initial amount, which may be as low as $5 or $25 depending on the bank.
- Receiving access to online banking, mobile apps, and sometimes a debit card with spending limits.
For example, a 16-year-old wants a checking account to manage a part-time job paycheck. The parent goes with the teen to their local bank, and the bank opens a joint checking account with a teen debit card. The teen learns how to write checks, use the card, and set alerts, while the parent monitors spending.
This hands-on process builds understanding of banking fundamentals and adult money habits.
Which banks allow minors to open accounts?
Many banks, credit unions, and online financial institutions offer accounts for minors, but options vary widely. Some of the most popular include:
| Bank Type | Examples | Account Type | Notes |
|---|---|---|---|
| Large National Banks | Chase, Wells Fargo, Bank of America | Joint savings or checking accounts | Often require parent co-owner; some offer teen debit cards with parental controls |
| Regional Banks | PNC Bank, U.S. Bank | Youth savings or checking | Typically lower fees; some offer financial education resources |
| Credit Unions | Local credit unions | Custodial or joint accounts | May offer personalized service and lower costs; membership may be required |
| Online Banks | Some online banks | Teen or minor accounts | Require adult co-owner; limited branch access, but often strong digital tools |
For example, Chase allows minors to open a “Chase High School Checking” with a parent co-owner, including a debit card with spending limits. Meanwhile, local credit unions may offer savings accounts with no monthly fees and small minimum deposits to encourage early saving.
Before choosing, parents and minors should check bank websites or call branches to verify account features, fees, minimum deposits, and identification requirements.
Why is it important for minors to have bank accounts?
Opening a bank account early offers several benefits for minors and their families:
- Builds financial literacy: Handling a bank account helps minors understand saving, budgeting, and responsible spending.
- Provides safety and security: Funds are held securely, reducing risks of lost cash or theft.
- Establishes banking history: A positive banking record can ease future credit applications and financial independence.
- Access to financial tools: Many minor accounts come with debit cards (with parental controls), online banking, and mobile apps.
- Encourages saving habits: Having a dedicated account motivates minors to save for goals like education, hobbies, or emergencies.
- Facilitates parental oversight: Parents can monitor transactions, help teach money management, and prevent misuse.
For example, a parent might open a savings account for a 10-year-old who receives weekly allowance money. The parent explains how to track deposits and interest earned, showing how small amounts grow over time. This early experience builds confidence and understanding before the teen begins earning wages.
What terms are often confused with minor bank accounts?
Understanding related terms helps families choose the right financial product for minors:
- Custodial accounts: These are accounts where an adult manages funds for a minor’s benefit, but the money legally belongs to the child. When the child reaches adulthood, control transfers fully to them. Custodial accounts can include bank accounts or investment accounts under laws like the Uniform Transfers to Minors Act (UTMA).
- Teen or youth accounts: These bank accounts require an adult co-owner and often include debit cards with parental controls. Designed for minors, they focus on learning and safety.
- Prepaid debit cards for kids: Rechargeable cards parents can load with money, featuring spending limits and parental monitoring. These are not bank accounts and do not earn interest or have FDIC insurance.
- Uniform Transfers to Minors Act (UTMA) accounts: Investment accounts controlled by an adult custodian for a minor’s benefit, typically used for stocks or mutual funds rather than everyday banking.
Clarifying these differences helps avoid confusion. For example, a prepaid card might seem easier to get, but a minor bank account offers interest and a path to full banking independence.
What steps should you take to open a minor bank account?
To open a minor bank account, follow these practical steps:
- Research local banks and credit unions: Look for institutions with minor or youth account options, low fees, and convenient locations or online access.
- Check age requirements and documents: Verify the minimum age to open an account and what IDs are needed for both minor and adult (e.g., birth certificate, Social Security card, driver’s license).
- Compare features: Consider fees, minimum deposits, online banking tools, debit card options, and parental controls.
- Visit the branch or apply online: Bring the minor with you if required. Both minor and adult will need to sign documents.
- Make the initial deposit: Often a small amount like $5 to $25.
- Set up account access: Enroll in online banking, download the mobile app, and request a debit card if available.
- Discuss account rules: Explain how to use the account responsibly, including deposits, withdrawals, and tracking balances.
- Monitor the account together: Parents should regularly review activity and set spending limits if possible.
For example, a parent and 15-year-old might visit a local credit union, bring IDs, open a joint checking account with a teen debit card, deposit $20, and set up mobile alerts to monitor spending.
These steps make the experience educational and safe.
How do you transition a minor account when the child turns 18?
When the minor reaches the legally defined age of majority—usually 18—the bank requires the account be converted to an individual adult account. This transition typically involves:
- The now-adult account holder visiting the bank to update identification.
- Removing the parent or guardian’s name from the account.
- Signing new account agreements reflecting adult ownership.
- Possibly upgrading services, such as applying for credit cards, loans, or overdraft protection.
- Reviewing and updating contact information and account preferences.
For example, a 18-year-old who had a joint account with a parent visits the bank with a driver’s license. The bank removes the parent as co-owner, making the young adult the sole owner. The bank may offer additional products suitable for adults.
This process ensures the young adult gains full control and responsibility for their financial affairs.
Frequently asked questions
Can a minor open a bank account without a parent?
No, federal law requires minors to have a parent or guardian as a joint owner or custodian because minors cannot legally enter contracts on their own. Exceptions may exist for emancipated minors, but these are rare and require legal documentation.
What documents are needed to open a minor account?
Typically, you need the minor’s Social Security number, valid identification for both the minor and adult co-owner (such as birth certificate, passport, or driver’s license), and proof of address. Requirements vary by bank, so check ahead.
Can minors get debit cards with their accounts?
Yes, many banks offer debit cards linked to minor or teen accounts with parental controls limiting spending, ATM withdrawals, and merchant types. These cards help teach responsible money use while keeping parents informed.
What happens if the minor withdraws money without the parent’s permission?
Because the account is jointly owned or custodial, parents or guardians can monitor transactions and set limits. Clear communication and supervision are essential to prevent misuse. Some banks offer alerts to notify parents of account activity.
Are funds in minor accounts insured?
Yes, deposits in bank accounts for minors are insured by the FDIC (or the NCUA for credit unions) up to applicable limits, protecting funds in case of bank failure.
Can minors open accounts online?
Some banks allow minors to start the application online but usually require an in-person visit with a parent or guardian to verify identity and sign documents. Always check with the specific bank for their process.