- A kids' savings account usually must be opened alongside a person over the age of 18.
- Kids' or teens' checking accounts typically require the minor to be at least 13 years old.
- A bank account for a minor can be used to teach financial literacy and responsibility.
If you think your child is ready to manage money, setting up a bank account can be a great next step. Not only will it give them a safe place to store their cash, but it can be an opportunity for teaching kids financial literacy through banking.
Below, we'll guide you through the process of opening a bank account for your child, as well as provide tips and guidelines to help them manage it.
What is a kids' bank account?
A kids' bank account is a type of joint bank account where an adult and a minor both have access.
While there aren't any federal laws that prohibit a minor from opening a bank account on their own, state laws say a bank account for a minor must be opened by someone that is 18 or older.
If you live in a state that doesn't include a minimum age requirement in the state law, most financial institutions will still have a policy that says an adult is needed to open an account.
Types of bank accounts for minors
There are two primary joint bank account options: kids' savings accounts and teens' checking accounts. Depending on where you bank, you may need to open a traditional savings account or a specialized bank account tailored to children.
Savings accounts
A kids' savings account is available to minors of any age.
It will typically earn a bit of interest on money deposited, but the rate will depend on the specific financial institution. Online banks and credit unions usually offer a higher rate than brick-and-mortar banks.
Teens' checking accounts
Most banks require the child to be at least 13 years old to open a teen checking account.
Teens' checking accounts often include debit cards or ATM cards so they can make purchases and withdraw cash, but still give the adult the ability to set up parental controls and account monitoring.
Custodial accounts
At certain financial institutions, you may also see custodial accounts. A custodial bank account is not the same as a traditional kids' bank account. Custodial accounts are a type of investment account, and a child will obtain ownership of the account after the age of 18.
Required documentation
To open a bank account for a minor, one of the individuals signing up for the account must be over the age of 18. Below, are the documents needed for a child's bank account, whether you're applying online or at a branch:
- Identification for the minor (e.g. social security card, birth certificate, school ID, passport)
- Identification for the adult (e.g. driver's license or passport)
- Adult's Social Security number (if you don't have a U.S. ID, refer to our list of banks and credit unions that make it easy for immigrants and non-U.S. citizens)
- Adult's current bank account number (Banks usually connect kids' accounts to a parent's accounts)
Step-by-step process
1. Choosing the right bank and account type
Evaluate account features such as debit card or ATM access, parental controls, balance requirements, interest rates, common bank fees, and the quality of the bank's mobile app.
Determine what the purpose of the account is, such as giving your child the ability to pay with a debit card or a place for them to deposit birthday money. Some financial institutions require a parent to have a connected account, so consider whether you are willing to bank there as well.
Elaine King, a CFP professional and the founder of Family and Money Matters, suggests parents introduce savings accounts as a first step to teach children about how money can grow, then potentially transition to an investment account.
Check out the financial institution's age limits as well. Once your child reaches a certain age, they will have to transfer funds to a new account, or the bank will automatically enroll them in a traditional savings account.
2. Gather the necessary documents
In some cases you can apply for a kids' bank account online. Some banks, however, will require an in-person visit. Make sure you have everything listed above, from identification for yourself and the child to your current bank account number, handy.
3. Complete the application and make an initial deposit
You may be required to fund the account with an initial deposit after opening by linking an external account or making an ACH transfer. If the account comes with a debit card, you will likely need to wait several days for it to arrive in the mail.
In the meantime, explore the account and set up parental controls, balance alerts, and other important notifications.
Teaching financial responsibility
King recommends parents lead by example to teach financial literacy. "If a parent goes to the bank, teach your child to go to the bank. If the parent does online banking, then open online banking for the child," King says.
When parents set aside money for financial goals, she adds, they should have open communication with children so they can understand why money is being saved.
Parents could say, for example, "Look, we have a budget of $100 to go out. But, we're going to spend $80, so $20 we're going to put it in your savings account, and that is for you to go to college," King says. That way, a child recognizes the money is being used for a specific savings goal.
Make a habit of reviewing bank statements with the child too, so they can identify spending patterns and maintain a budget, and be sure they understand any fees associated with the account and how to avoid them.
Kid's banking FAQs
Minors can have access to savings accounts, checking accounts, and custodial accounts. They will need a person 18 or older to open the account with them. Checking accounts are usually only available to minors age 13 or older.
Identification for both the adult and the minor (e.g. a passport, driver's license, or birth certificate), the adult's bank account information and Social Security number are usually required.
Some national banks permit online applications when opening a bank account on behalf of a minor, but many require opening a minor's first bank account at a physical branch.
Regularly reviewing transaction activity can help children identify spending patterns and learn how to budget. Utilizing auto-save features in a savings account can help kids set and maintain financial goals.
There's typically no minimum age for minors opening a joint or custodial savings account. Banks often require a minor to be 13 or older to open a joint checking account.
