A child can have a bank account at almost any age, as long as a parent or legal guardian is on the account with them. Most banks set no minimum age for a savings account, so you can open one for a newborn. Checking accounts with a debit card generally require the child to be at least 13. Until 18, an adult co-owner is almost always required, because minors can legally walk away from contracts and banks want someone they can hold responsible.
Age Rules by Account Type
No federal law sets a minimum age for a bank account. The barrier is contract law: in virtually every state, anyone under 18 can void a contract, which is why banks are reluctant to open an account with a minor as the sole owner. Adding an adult co-owner solves that problem by giving the bank an enforceable agreement and a person on the hook for fees or negative balances.
Savings accounts are the most flexible. Many major banks let a parent open one for a child of any age, including infants. Checking accounts with a debit card usually start at 13, in part because online and mobile features trigger the Children’s Online Privacy Protection Act, which requires verifiable parental consent before a site or app collects personal information from children under 13.1Federal Trade Commission. Complying with COPPA: Frequently Asked Questions Banks building teen banking tools have to comply, and it’s simpler to set the minimum age at 13 than to build a COPPA-compliant experience for younger kids.
When a Teen Can Bank Without a Parent
At 18, a young adult has full contractual capacity and can open any account on their own. Some banks drop that threshold to 16 for basic checking or savings, allowing the teen to be the sole owner. There’s no federal standard here, so policies vary by institution. If your teenager wants an account without you on it, call ahead and ask.
What You’ll Need to Open It
Federal anti-money-laundering rules require every bank to run a Customer Identification Program at account opening. The bank must collect four data points for each person on the account: legal name, date of birth, address, and a taxpayer identification number.2eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks For U.S. persons, that means a Social Security number or an Individual Taxpayer Identification Number. An SSN is not strictly required; an ITIN works.3Consumer Financial Protection Bureau. Can I Get a Checking Account Without a Social Security Number or Driver’s License?
Banks layer their own verification on top. Common requests:
- For the child: a birth certificate or passport to confirm identity and age.
- For the adult co-owner: a government-issued photo ID such as a driver’s license or passport, plus proof of address like a recent utility bill or bank statement.
These extra documents are bank policy, not federal law, so the exact list shifts by institution. Gather everything before you start. Most banks let you upload scans through an online portal, though a savings account for a very young child sometimes requires an in-person visit.
Joint Account or Custodial Account?
Parents usually choose between two structures, and the difference matters more than the paperwork suggests. They look alike on the surface but split sharply on who owns the money.
Joint Accounts
A joint account lists both parent and child as co-owners. Both can deposit and withdraw, and either can see the transaction history. This works well for everyday banking: the child deposits allowance or earnings, learns to track a balance, and the parent stays in the loop. Because the child’s signature is voidable, the parent is effectively responsible for any fees or overdrafts.
Custodial Accounts (UTMA and UGMA)
Custodial accounts work differently. Under the Uniform Transfers to Minors Act or the older Uniform Gifts to Minors Act, the money belongs to the child from the moment it’s deposited, but an adult custodian controls it until the child hits a termination age set by state law. In most states that’s 21, though some set it at 18 or 25. The custodian can spend the money only for the child’s benefit, not for personal use.
Custodial accounts are built for transferring wealth, not for teaching a kid to swipe a debit card. Once you deposit money, the gift is irrevocable. You cannot take it back. When the child reaches the termination age, the whole balance transfers to them with no strings attached. A 21-year-old inheriting a sizable balance has no legal obligation to use it wisely, which is worth thinking about before funding one heavily.
Taxes on Your Child’s Account
Interest and investment income in a child’s account are taxable, and the rules catch a lot of parents off guard. The child is the taxpayer, even if the parent controls the account. Who actually pays depends on how much unearned income the account throws off.
The IRS applies the “kiddie tax” to a child’s unearned income above $2,700.4Internal Revenue Service. Topic No. 553, Tax on a Child’s Investment and Other Unearned Income (Kiddie Tax) The tiers work like this:
- A first portion, roughly equal to the dependent standard deduction, is sheltered entirely.
- The next slice, up to $2,700 total, is taxed at the child’s own rate, which is usually very low.
- Anything above $2,700 is taxed at the parent’s marginal rate. This requires filing IRS Form 8615 with the child’s return.
The kiddie tax applies to children under 18, to 18-year-olds who don’t earn more than half their own support, and to full-time students aged 19 through 23 who don’t earn more than half their own support.4Internal Revenue Service. Topic No. 553, Tax on a Child’s Investment and Other Unearned Income (Kiddie Tax)
For a basic savings account earning small amounts of interest, the practical impact is minimal. A bank must issue a Form 1099-INT when it pays at least $10 in interest during the year.5Internal Revenue Service. About Form 1099-INT, Interest Income If your child’s total unearned income stays under the dependent standard deduction, no return is needed. Custodial accounts invested in stocks or funds can generate enough dividends and capital gains to trip the kiddie tax, so watch the year-end statements. Parents may also elect to report a child’s unearned income on their own return if the child’s gross income is under $13,500 for the year, which simplifies filing but may raise the parent’s bill.4Internal Revenue Service. Topic No. 553, Tax on a Child’s Investment and Other Unearned Income (Kiddie Tax)
Debit Card Fraud Liability
Once your child has a debit card, unauthorized transactions become a real risk. Federal law caps what you can lose, but the cap depends on how fast you report the problem.
- Reported within 2 business days: liability is capped at $50, or the amount of unauthorized transfers before you notified the bank, whichever is less.
- Reported after 2 business days but before 60 days: liability can rise to $500.
- Not reported within 60 days of receiving a statement: you could be on the hook for the full amount of unauthorized transfers that occur after that 60-day window.
These limits come from Regulation E, which governs electronic fund transfers. If circumstances like hospitalization prevent timely reporting, the bank must extend the deadlines to a reasonable period.6Consumer Financial Protection Bureau. Liability of Consumer for Unauthorized Transfers (Regulation E)
The practical move: turn on transaction alerts and go through statements with your child every month. The clock starts when the statement is sent, not when you get around to reading it. Teaching a kid to flag charges they don’t recognize is one of the more useful habits a first account can build.
Fees to Watch
Most banks waive monthly maintenance fees on accounts designed for minors or students. Banks want young customers who stick around for adult checking, credit cards, and loans, so a child’s savings account at a major bank usually costs nothing to hold.
Fees still surface elsewhere. Overdraft charges on a teen checking account, paper statement fees, out-of-network ATM fees, and wire transfer fees generally track the adult schedule. As co-owner, you’re liable for those. Before you open, ask specifically about overdrafts. Some teen accounts decline transactions that would overdraw the balance instead of charging a fee, which is exactly what you want when a 14-year-old is learning to use a debit card.
Opening the Account
The process is quick once your documents are ready. Most joint checking and savings accounts can be opened online, though savings accounts for children under 13 sometimes require a branch visit. Bring the child’s birth certificate or passport, the child’s Social Security number or ITIN, your government-issued photo ID, and proof of your address. Initial deposits usually run from $25 to $100 for a minor’s savings account, and some banks have dropped the minimum to zero.
Digital access is generally live within a day or two after the bank verifies identities. If a debit card is part of the account, expect it by mail within a week or so. Before handing it over, walk your child through the basics: how to check the balance, what an overdraft means, and why they should tell you the moment they see a charge they don’t recognize.