What Age You Need to Be to Open a Savings Account

You can open a savings account at any age, but a minor needs a parent or guardian

There is no minimum age to open a savings account. Banks and credit unions will open accounts for children of any age — infants included. The catch is that anyone under 18 (the age of majority in most states) cannot sign contracts or manage money legally on their own, so a parent or guardian must open and control the account until the child reaches adulthood.

The account itself belongs to the child and earns interest in their name, but the parent or guardian has full access and decision-making power. This arrangement is called a custodial account or a minor account, depending on the bank's terminology. Once the child turns 18, they can take over the account, add their own authorized users, or move the money elsewhere.

Key Takeaways

A parent or guardian can open a savings account for a child at any age by providing their own ID and the child's Social Security number or tax ID.
The account is held in the child's name and earns interest for them, but the parent or guardian controls it until the child turns 18.
Some banks offer teen accounts designed for ages 13 and up, which give teenagers limited control over their own money while the parent retains oversight.
When a child turns 18, they become the sole owner and can manage the account independently, though some banks require a visit to convert it.

What you need to open an account for a minor

To open a custodial savings account, bring the parent or guardian's government-issued ID (driver's license, passport, or state ID) and the child's Social Security number. If the child does not have a Social Security number yet, you can apply for one at your local Social Security office or through an online application at ssa.gov. The process takes a few weeks.

Some banks also ask for proof of the parent-child relationship — a birth certificate works — though many waive this if you open the account in person. A few banks require both parents to sign if both are listed on the birth certificate, so call ahead if that applies to you. You do not need the child present to open the account, though some banks prefer it.

Custodial accounts versus teen accounts

A custodial account is the standard option at most banks. The parent or guardian has complete control: they can deposit, withdraw, and close the account without the child's permission. The child cannot access the account or make transactions on their own. This works well for saving money for a child's future or managing funds you are setting aside for them.

A teen account (sometimes called a youth account or student account) is offered by many large banks starting at age 13. It gives the teenager their own debit card and online access to check balances and make withdrawals, while the parent retains the ability to monitor activity and set spending limits. Examples include Chase First Banking, Bank of America Teen Checking, and Wells Fargo Teen Checking. Teen accounts typically have no monthly fees and no minimum balance, but they may have limits on how much can be withdrawn per day or per month.

Choose a custodial account if you want full control and the child is too young to understand money. Choose a teen account if the child is a teenager and you want them to learn to manage their own spending while you keep oversight.

What happens when your child turns 18

When a minor turns 18, they become a legal adult and the account automatically converts to a standard adult account in their sole name. The parent or guardian's access ends, and the young adult can now withdraw money, close the account, or change the account terms without permission.

Some banks handle this conversion automatically and notify both the account holder and the parent. Others require the young adult to visit a branch in person to sign new paperwork and confirm they want to take over the account. A few banks ask the parent to formally remove themselves. Check with your bank about their specific process a few months before the 18th birthday so there are no surprises.

Banks and credit unions that accept minors

Nearly every bank and credit union in the United States will open a custodial savings account. Large national banks like Chase, Bank of America, Wells Fargo, and Citibank all offer them. Credit unions, which are member-owned financial institutions, also accept minor accounts and often have lower fees and higher interest rates than banks.

If you belong to a credit union, start there — membership is often free or low-cost, and credit unions tend to be more flexible about documentation. If you use a bank, call ahead to confirm they offer custodial accounts and ask what documents you need to bring. Online banks like Ally and Marcus generally do not offer custodial accounts, so you will need to use a traditional bank or credit union with a physical branch or a full online application process.

Taxes on interest earned in a custodial account

Interest earned in a custodial account is taxable income to the child, not the parent. The bank will send a 1099-INT form (or 1099-OID for certain savings products) to the child's Social Security number at tax time. If the interest is small — under $1,200 per year for most children — the child usually does not have to file a tax return. If it exceeds that amount, a tax return is required.

The parent or guardian is responsible for reporting the income on the child's behalf if the child is too young to file. Keep records of all interest earned each year so you have the information ready when tax time comes. This is rarely a burden for savings accounts, since interest rates are low and most children's accounts earn minimal interest.

Frequently Asked Questions

Can I open a savings account for a newborn?

Yes. Bring your ID and the child's Social Security number (or apply for one first). The account will be in the child's name and earn interest for them, but you control it completely until they turn 18. This is a common way to start saving for a child's future.

What if my child is 16 and wants their own account?

Open a teen account if your bank offers one, which gives them a debit card and online access while you retain oversight. If your bank does not have a teen product, stick with a custodial account and let them practice managing money through an allowance or part-time job earnings instead.

Do I need the child's permission to withdraw money from their custodial account?

No. As the custodian, you have full legal authority to deposit and withdraw funds. The account belongs to the child, but you control it. This changes at age 18, when the child becomes the sole owner.

Can I move a custodial account to a different bank?

Yes. Contact the new bank to open a custodial account there, then ask your current bank to transfer the balance. The process usually takes 5 to 10 business days. The account stays in the child's name throughout the transfer.

What happens if I close the custodial account before my child turns 18?

You can close it anytime — you have full control. The funds go to you (or wherever you direct them). The child has no say in the decision. If you want to preserve the money for them, move it to a different account or investment instead of closing it.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.