Yes, minors can open bank accounts in the United States, but almost every bank requires a parent or legal guardian to be on the account as a joint owner or custodian. People under 18 generally cannot enter binding contracts on their own, so the adult accepts legal responsibility for the account alongside the child. Once you decide which type of account fits your family, opening one is straightforward.
Types of Accounts a Minor Can Open
Joint Accounts
A joint account is the most common setup. You and your child are both listed as co-owners, and both of you can deposit, withdraw, and monitor activity. That gives parents real visibility into spending while the child gets a debit card and mobile app to practice with. The trade-off: you are equally liable for any negative balance, and either party can generally access the full balance at any time.
Custodial Accounts
Custodial accounts work differently. Under the Uniform Transfers to Minors Act (UTMA) or the older Uniform Gifts to Minors Act (UGMA), the money legally belongs to the child from the moment it enters the account.1Legal Information Institute (LII). Uniform Transfers to Minors Act A custodian, usually a parent, manages the funds until the child reaches the transfer age set by state law, typically 18 or 21. The child has no direct access until then, and the custodian is legally obligated to use the funds for the child’s benefit.
These accounts are popular for holding gifts from relatives, savings bonds, or investment assets. They also carry meaningful tax and financial aid consequences, covered below.
Teen and Student Checking Accounts
Many large banks offer checking accounts designed specifically for minors or students. They typically function like joint accounts with a parent but add perks aimed at younger customers: no monthly maintenance fees, no minimum balance requirements, and built-in spending controls. Some banks waive monthly fees for account holders under 25. Others waive fees for students enrolled in college for up to five years after opening. A few online banks and fintech companies offer teen accounts with zero monthly fees regardless of balance or enrollment.
What You Need to Open the Account
Federal banking regulations require every bank to run a Customer Identification Program before opening an account. At minimum, the bank must collect a name, date of birth, address, and taxpayer identification number for each person on the account.2eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks In practice, plan to bring:
- For the minor: a Social Security number and a birth certificate or unexpired passport. The birth certificate proves both identity and age.
- For the adult: an unexpired government-issued photo ID such as a driver’s license or passport.2eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks
- Proof of address. Minors rarely have utility bills or leases in their name. A recent bank statement, school enrollment letter, or mail addressed to the parent at the household address usually works. Some banks accept the parent’s address verification for both parties.
- An initial deposit. Most banks require between $25 and $100 to open the account, though some student-oriented accounts have no minimum.
The adult should also be ready to provide basic employment information and an estimate of annual income. Banks use this to comply with anti-money-laundering rules, not to judge account eligibility.
How to Open the Account
You can open most minor accounts either online or at a branch. Online applications walk you through a series of fields for both the adult and the child, with uploads for identifying documents. At a branch, a banker reviews physical documents, takes copies, and collects signatures from the adult, and sometimes the minor.
After submission, the bank verifies Social Security numbers and runs a background check on the adult. Approval usually takes a few business days. Once approved, the minor typically receives a debit card by mail within a week or two along with instructions to set up online banking. Monthly statements give both the parent and the child a full record of transactions.
Fees Worth Checking Before You Sign Up
Overdraft policies vary widely. Several major national banks have eliminated overdraft fees entirely, while others have cut them to $10 or $15 per incident. The national average for banks that still charge these fees sits around $27 per transaction, down from the $35 that was standard a few years ago. On a joint account, the adult co-owner is equally liable for any overdraft charges.
Monthly maintenance fees are the other line item to watch. Many teen and student accounts waive them automatically based on age, student enrollment, or a modest minimum balance. If the account does charge a monthly fee, ask what triggers the waiver. Common conditions include keeping a minimum daily balance of $500 or receiving one direct deposit per month.
Tax Rules on a Child’s Account Earnings
Any interest earned on your child’s account is reportable income. Banks file a Form 1099-INT with the IRS for any account that earns at least $10 in interest during the year.3Internal Revenue Service. About Form 1099-INT, Interest Income For a basic savings account, the tax consequences are minimal. For custodial accounts holding larger balances or investment assets, the numbers can add up.
The “kiddie tax” applies when a child’s unearned income (interest, dividends, and capital gains) exceeds $2,700 in a tax year. Above that threshold, the excess is taxed at the parent’s marginal rate instead of the child’s lower rate.4Internal Revenue Service. Topic No. 553, Tax on a Child’s Investment and Other Unearned Income (Kiddie Tax) The rule applies to children under 18, and it can extend to 18-year-olds and full-time students under 24 whose earned income does not cover more than half their support. If the kiddie tax applies, file Form 8615 with the child’s return.5Internal Revenue Service. 2025 Instructions for Form 8615
There is a simpler alternative if your child’s total gross income is under $13,500 and consists only of interest, dividends, and capital gain distributions. In that case, you can elect to report the child’s income on your own return using Form 8814, and the child does not need to file a separate return.4Internal Revenue Service. Topic No. 553, Tax on a Child’s Investment and Other Unearned Income (Kiddie Tax)
How the Account Affects College Financial Aid
Where the account sits matters on the FAFSA. The formula for calculating a family’s Student Aid Index treats parent-owned assets gently, assessing them at a maximum rate of 5.64%. Student-owned assets are assessed at 20%.6Federal Student Aid. 2025-26 Student Aid Index (SAI) and Pell Grant Eligibility Guide Every $10,000 in a custodial account reduces aid eligibility by up to $2,000. The same $10,000 in a parent’s account would reduce eligibility by up to $564.
This is the hidden cost of custodial accounts. A UTMA or UGMA account is legally the child’s asset, so it gets reported on the FAFSA at the higher 20% rate regardless of who deposited the money.6Federal Student Aid. 2025-26 Student Aid Index (SAI) and Pell Grant Eligibility Guide A joint account between parent and child is more complicated; its classification depends on how the FAFSA instructions treat joint ownership, and families should report it carefully. If financial aid is a concern and your child is years away from college, keeping larger savings in a parent-owned account or a 529 plan (which is assessed at the parent rate) preserves more aid eligibility.
What Changes When Your Child Turns 18
The transition depends on the type of account.
For joint accounts, turning 18 doesn’t automatically change anything. The parent remains a co-owner, and in most cases you cannot remove a co-owner without their consent.7Consumer Financial Protection Bureau. Can I Remove My Spouse From Our Joint Checking Account A common approach is to open a new individual account in the child’s name and close or draw down the joint account by agreement.
Custodial accounts follow a different path. Under the UTMA, the child automatically gains control of the assets when they reach the age of majority set by state law.8Social Security Administration. POMS SI 01120.205 – Uniform Transfers to Minors Act That age is typically 18 or 21, though some states allow the donor to extend the custodianship as late as 25. Once the transfer age arrives, the custodian’s authority ends and every dollar in the account belongs to the child outright. No approval process or court order is needed; the transfer happens automatically by operation of law.1Legal Information Institute (LII). Uniform Transfers to Minors Act The bank may require new account paperwork, but the money is legally the child’s from that moment forward.
Either way, the age-of-majority transition is a good moment to reassess. Your newly adult child may want a bank that fits their adult life, and student fee waivers won’t last forever.