To open a bank account for a minor online, choose between a joint account and a custodial account, then complete the bank’s application with identification and a Social Security number for both you and your child. Because minors generally cannot enter binding contracts, an adult parent or legal guardian must be on the account. With documents ready, the form itself usually takes under 15 minutes.
Joint or Custodial: Pick the Structure First
The account type shapes who owns the money, who can move it, and what happens when your child grows up. Decide before you start the application, because the two structures live on different pages of the bank’s site.
A joint account treats you and your child as co-owners. Either of you can deposit or withdraw, which gives your child hands-on practice while you keep full visibility. Because both names are on the account, the funds could be subject to claims from creditors of either owner.
A custodial account operates under the Uniform Transfers to Minors Act (UTMA) or the older Uniform Gifts to Minors Act (UGMA). The child is the legal owner; you manage the money as custodian until the child reaches the transfer age set by your state, typically between 18 and 25.1Legal Information Institute (LII) / Cornell Law School. Uniform Transfers to Minors Act As custodian, you have a fiduciary duty to use the funds for the child’s benefit, and only you can authorize transactions until the account transfers. Custodial accounts fit savings and investing. Joint accounts fit everyday spending and debit card use.
What You Need Before You Start
Federal rules require the bank to collect four pieces of identifying information from every customer before opening an account: name, date of birth, address, and a taxpayer identification number.2eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements For U.S. individuals that number is a Social Security number, and the bank must collect the full SSN directly from the customer before the account can be opened.3FDIC. Collecting Identifying Information Required Under the Customer Identification Program (CIP) Rule You’ll need both SSNs on hand.
Have the following ready for yourself:
- A government-issued photo ID, such as a driver’s license or passport, with the document number, issue date, and expiration date.
- Your Social Security number.
- Your residential address, phone number, email address, and basic employment information.
For your child:
- Legal name and date of birth, matching official records exactly.
- Social Security number. Interest earned on the account is reported to the IRS under this number.
- Birth certificate number or state-issued ID. Some banks ask for one of these as an added verification step; others don’t.
Many bank websites include an upload feature for scanned copies or clear photos of the ID documents, which the bank uses to cross-check against government databases.
The Application Step by Step
Go to the bank’s website and look for a section labeled Personal Banking, Student Banking, or Youth Accounts. An “Open an Account” link will lead to a selection screen where you choose the specific product designed for minors. The form has separate sections for the adult and the child.
Fill in your section first: name, address, employment details, date of birth, and SSN. Then move to your child’s section: legal name, date of birth, and SSN. Slow down here. A small discrepancy between what you type and what’s in government records can flag the application for manual review or cause a rejection.
Once every field is complete, the application moves to disclosures and a digital signature. You’ll review the account’s terms of service, fee schedule, and privacy policy, then click to give electronic consent. Federal law gives an electronic signature the same legal weight as a handwritten one, so agreeing is binding.4Office of the Law Revision Counsel. 15 USC 7001 – General Rule of Validity
Funding the Account and Approval Timing
Most banks ask you to fund the new account right after you submit. The common method is an ACH transfer from an existing account at another bank, using that account’s routing number and account number. Some platforms accept debit card transfers for faster funding, sometimes with a small processing fee. Minimum opening deposits for youth accounts are generally modest, often around $25.
The bank’s compliance team then reviews the information. Approval typically comes within one to three business days, and a confirmation email will follow with the new account number and instructions for setting up online banking. If a debit card is issued for your child, it’s usually mailed separately and arrives in seven to ten business days. The card has to be activated through the bank’s app, website, or an automated phone line before your child can use it.
Age Rules for the Child and the Adult
Banks set their own minimum age for minor accounts, and the threshold varies by institution and account type. Some banks offer accounts for children as young as six. Others require the minor to be at least 13 for a checking account with a debit card. Savings-only custodial accounts can often be opened at any age, including for newborns, because the adult handles all transactions.
The adult on the account has to clear the bank’s own checks too. Most institutions require the co-owner or custodian to be at least 18, hold a valid Social Security number, and pass identity verification. A negative history in banking databases like ChexSystems, such as a previously overdrawn and closed account, can cause a denial even though the account is for your child.
Parental Controls You Can Set
Most youth-account platforms build in supervision tools that let your child practice while you keep guardrails on. Common features:
- Real-time transaction alerts by push notification, showing amount, merchant, and time.
- Per-transaction or weekly spending limits, plus daily ATM withdrawal caps that are often lower than standard adult limits.
- Merchant category blocks that stop transactions at certain types of businesses, including stores selling age-restricted products.
- An in-app card lock that freezes the debit card instantly if it’s lost or you want to pause spending.
Teen accounts usually restrict or eliminate overdraft capability. Instead of letting a transaction go negative and charging a fee, the bank declines the purchase. At some institutions, certain pending transactions or fees can still bring the balance slightly below zero.
Fees Worth Checking
Many banks waive monthly maintenance fees on youth and student accounts as long as an owner is under a certain age, often 25. After that birthday, the account converts to a standard product with its regular fee structure, so read the terms before the waiver expires. Also look at charges for out-of-network ATM use, paper statement delivery, replacement debit cards, and wire transfers. Youth accounts at online-only banks tend to carry fewer of these than accounts at traditional brick-and-mortar institutions.
Interest and Taxes in Brief
Interest earned in your child’s account is unearned income, reported to the IRS under the child’s SSN. For a normal youth savings balance, the standard deduction for dependents absorbs it. If your child’s total unearned income (interest, dividends, and capital gains combined) exceeds $2,700, the “kiddie tax” may apply, taxing a portion at the parent’s marginal rate instead of the child’s.5Internal Revenue Service. Topic No. 553, Tax on a Child’s Investment and Other Unearned Income (Kiddie Tax) That threshold rarely matters for a plain savings account, but it can come into play if you’ve also set up custodial investments.
What Changes When Your Child Turns 18
The transition depends on the account type, and this catches parents off guard.
A joint account doesn’t automatically convert at 18. Both owners stay on it. If your now-adult child wants sole control, the cleanest path is usually a new individual account and closing the old joint one. Some banks will remove a co-owner with both parties’ consent, but policies vary.
A custodial UTMA or UGMA account transfers on a schedule set by state law. In many states the termination age is 18; in others it’s 21 or 25, and the terms specified when you opened the account matter.1Legal Information Institute (LII) / Cornell Law School. Uniform Transfers to Minors Act Once that age hits, the custodian must hand over full control. The young adult becomes sole owner and can use the funds however they choose. If you’re worried about unrestricted access to a large balance, some states let you name a later transfer age at the time you open the account, so check your state’s rules before you set one up.