The minimum age to open a high yield savings account in your own name is 18 at almost every bank and credit union in the United States. Below 18, you can still earn the same interest rates, but the account has to be opened either as a custodial account managed by an adult or as a joint account you share with a parent or guardian.
Why 18 Is the Cutoff
Opening a savings account is a contract between you and the bank. Minors can generally walk away from contracts they’ve signed, so banks won’t take on that risk and require account holders to have full contract capacity. In most states, you get that capacity the day you turn 18.
A few states set their general age of majority higher, but each one carves out contracts as an exception. Alabama’s age of majority is 19, and the same statute allows any 18-year-old of sound mind to enter a binding contract that can’t be canceled on the basis of age alone.1Alabama Legislature. Alabama Code 26-1-1 – Age of Majority Designated as 19 Years Nebraska declares people under 19 to be minors, then explicitly permits 18-year-olds who are not wards of the state to enter binding contracts and leases.2Nebraska Legislature. Nebraska Revised Statutes 43-2101 – Persons Under Nineteen Years of Age Declared Minors Mississippi defines a minor as anyone under 21 for most purposes, but drops the cutoff to 18 for statutes involving contracts that affect property.3Justia. Mississippi Code 1-3-27 – Minor The end result is the same everywhere: an 18-year-old can sign for a savings account.
If You’ve Been Legally Emancipated
A court order of emancipation before your 18th birthday generally gives you the legal capacity to enter contracts on your own, including opening a bank account. Emancipation laws vary by state, and not every bank handles this the same way. Bring your emancipation order when you apply and be ready to explain it.
Savings Options If You’re Under 18
Two account structures let a minor earn high yield savings rates: a custodial account, or a joint account with an adult.
Custodial Accounts Under UGMA or UTMA
A custodial account holds money that legally belongs to the minor, but an adult custodian, usually a parent or grandparent, manages it. These accounts are set up under either the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act, depending on the state. The custodian controls deposits, withdrawals, and investment decisions until you reach the account’s termination age, at which point they’re required to hand the funds over.4FINRA.org. 2019 Report on Examination Findings and Observations – UTMA and UGMA
Termination ages vary widely. In most states, the custodian can end the account when you turn 18 or 21. Several states, including Florida, Ohio, Oregon, California, and Nevada, allow the custodian to set termination as late as 25. Wyoming allows up to 30. Once you hit the termination age, the custodian loses all authority and the assets are yours.
Joint Accounts With a Parent or Guardian
A joint account is simpler. You and an adult share ownership, and either of you can deposit or withdraw. The adult satisfies the bank’s requirement for a legally responsible party, and you get hands-on practice managing the money. The trade-off is that the adult stays legally responsible for everything that happens on the account, including any fees or overdrafts.
Taking Sole Ownership Later
When your custodial account terminates, the financial institution should transfer the assets into an account in your name alone. Many firms notify you as you approach the termination age, and some track it with automated systems.4FINRA.org. 2019 Report on Examination Findings and Observations – UTMA and UGMA If you haven’t heard from the bank by your termination date, call and start the transfer yourself.
Joint accounts don’t convert automatically. Once you turn 18, you can open your own individual high yield savings account and move your money over. Some banks let you drop the co-owner from the existing account; others require you to close the joint account and open a new one. Ask your bank which route it takes.
Taxes on a Minor’s Interest
Interest earned in a savings account is taxable income, even when the account belongs to a child. How it’s reported depends on how much the child earns.
If a child’s unearned income (interest, dividends, and similar earnings) exceeds $2,700, it may be taxed at the parent’s rate instead of the child’s. This is the so-called kiddie tax, and it applies to children under 18 and to certain older dependents who are full-time students under 24.5Internal Revenue Service. Topic No. 553, Tax on a Childs Investment and Other Unearned Income (Kiddie Tax) When the kiddie tax applies, it’s reported on Form 8615.
Parents get a shortcut when a child’s total gross income is under $13,500 and consists only of interest and dividends. Instead of filing a return for the child, the parent can report the child’s income on their own return using Form 8814. Under that election, the first $1,350 of the child’s interest income is not taxed.6Internal Revenue Service. Instructions for Form 8814 – Parents Election To Report Childs Interest and Dividends These thresholds are for the 2025 tax year, and the IRS adjusts them each year for inflation.
What You’ll Need to Open the Account
Federal law requires banks to verify the identity of every person opening an account.7Financial Crimes Enforcement Network. USA PATRIOT Act At a minimum, the bank collects four pieces of information before creating the account: your name, date of birth, address, and an identification number such as a Social Security number or Individual Taxpayer Identification Number. You’ll also need a government-issued photo ID, typically a driver’s license or passport.8FDIC. Customer Identification Program
For a custodial or joint account, the bank runs the same verification on the adult. The minor still needs a Social Security number in most cases, because the bank reports interest income to the IRS under that number.
You are not required to have a Social Security number to open a savings account. An Individual Taxpayer Identification Number works in its place, and some banks also accept a passport number with the country of issuance or an alien identification card number.9Consumer Financial Protection Bureau. Can I Get a Checking Account Without a Social Security Number or Drivers License Policies differ, so call ahead to confirm what the bank accepts.