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Bank Accounts for Minors: A Comprehensive Guide

Whether you’re a parent wanting to teach your child the basics of banking or a teen looking to deposit your first paycheck, a bank account is an essential tool for managing finances independently. But how young is too young to get started, and what do you need to know? Here’s a comprehensive guide to help you navigate the process.

How Old Do You Have to Be to Open a Bank Account?

Generally, you need to be 18 to open a bank account, although the exact age may vary by state. Fortunately, there are ways for kids younger than 18 to open a bank account with the help of a parent or guardian.

Bank Account Options for Minors

Several account options are available for minors, but they require an adult to either sign on as a co-owner or open the account on behalf of the child. Here are a few to consider:

Custodial Accounts

Custodial accounts, such as UGMA and UTMA accounts, allow adults to save on behalf of a minor. Only the custodian can access the account until it is transferred to the child, usually at the age of majority in their state.

Joint Accounts

A joint bank account lists both the parent or guardian and the minor, allowing both to make deposits and withdrawals. This setup enables the adult to monitor the minor’s activity and provide guidance.

Savings Accounts

You can typically open a savings account for a minor at any age, but an adult must be the co-owner until the child turns 18. Savings accounts are a great way to teach kids about interest and saving for larger expenses.

Checking Accounts

Checking accounts are generally more suitable for older children who have jobs and are responsible for some of their own purchases. These accounts often come with a debit card, teaching kids how to budget and track their expenses.

What Do You Need to Open a Bank Account?

Account opening requirements may vary by institution but typically include:

• The child’s name, date of birth, and Social Security number
• Identification, such as a birth certificate or photo ID
• Parent/guardian’s contact information and Social Security number
• Parent/guardian’s photo ID

Depending on the account and financial institution, you may also need to make an initial deposit.

What to Look for in a Bank Account for Minors

When shopping around, it’s important to look for accounts that will set your child up for success. Consider the following factors:

• Minimum deposit requirements
• Minimum balance requirements
• Interest rates
• Fees
• Online and mobile banking
• Account alerts
• Debit card availability

The Bottom Line

With the help of a parent or trusted adult, a minor doesn’t have to wait until they’re 18 to open a bank account. Opening an account for your child when they’re young can help them establish solid money management skills like tracking their spending, balancing their account, and saving up for what they want. Forming these habits early can help them prevent money mistakes when they’re older.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial journey!

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