What a youth savings account is and why banks offer them
A youth savings account is a bank account designed for minors, usually opened and managed by a parent or guardian until the child reaches a certain age—typically 18 or 21, depending on the bank. The account works like a regular savings account: your child deposits money, earns interest on the balance, and can withdraw funds when needed. The main difference is that a parent or guardian has legal control and visibility into the account until the child becomes an adult.
Banks offer these accounts because they want to build a relationship with young customers early. A teen who learns to save money in a youth account is more likely to open a checking account, apply for a credit card, or use other banking services later. For your family, a youth account gives your child a real place to watch money grow and learn how deposits, withdrawals, and interest work—without the risk of overdraft fees or credit decisions that could hurt their future.
Key Takeaways
- Most youth accounts require a parent or guardian to open the account and remain on it until the child reaches the bank's age limit, usually 18 or 21.
- You will need the child's Social Security number, proof of identity for both parent and child, and proof of address to open an account at most banks.
- Youth accounts typically earn little or no interest, so compare rates across banks before choosing—some credit unions and online banks pay slightly more.
- Many youth accounts convert automatically to adult accounts when the child reaches the age limit, though you may need to visit the bank or call to complete the switch.
What documents and information you need to bring
To open a youth savings account, you will need documents for both the parent or guardian and the child. Bring the child's Social Security number (or Individual Taxpayer Identification Number if they don't have a Social Security number), a government-issued ID for the child such as a passport or state ID, and a government-issued ID for the parent or guardian. If the child does not have a government ID, some banks will accept a school ID or birth certificate instead—call ahead to confirm what your bank accepts.
You will also need proof of address for at least one of you, usually a recent utility bill, lease, or mortgage statement. Some banks ask for both the parent's and child's addresses if they differ. A few banks now allow you to open youth accounts online without visiting a branch, though they may still require you to mail in copies of documents or verify identity through a video call. Check your bank's website or call their customer service line to see whether you can start the process online or must visit in person.
Where to open a youth account: banks, credit unions, and online options
Most large national banks—Chase, Bank of America, Wells Fargo, Citibank—offer youth savings accounts, and they are available at nearly every branch. The advantage is convenience: you likely already bank there, and your child can visit a local branch to deposit checks or cash. The drawback is that these accounts usually pay very little interest, often 0.01% or less on the balance.
Credit unions often pay slightly higher interest rates on youth accounts and may have lower or no minimum balance requirements. To join a credit union, you or your child usually must meet a membership requirement—living in a certain area, working for a specific employer, or belonging to an organization. If you are already a credit union member, ask whether your child can open a youth account there.
Online banks and fintech companies like Ally, Marcus, and Greenlight offer youth accounts with higher interest rates than traditional banks, though some require you to be an existing customer. Greenlight and similar apps are designed specifically for teens and include features like spending controls and chores tracking, but they charge a monthly subscription fee (usually $5 to $15). If your goal is simply to teach your child to save, a free account at your current bank or a local credit union may be enough.
The difference between custodial and joint accounts
Most youth savings accounts are custodial accounts, meaning the parent or guardian is the legal owner and the child's name is listed as a beneficiary or secondary account holder. You control all decisions—deposits, withdrawals, closing the account—until the child reaches the age of majority. The child can see the balance and may be able to make deposits, but cannot withdraw money or close the account without your permission.
Some banks offer joint accounts instead, where both parent and child are listed as owners with equal rights. Either of you can withdraw money or close the account. Joint accounts give your child more independence and responsibility, but they also mean your child could empty the account without your knowledge. For younger children, a custodial account is safer. For teens who are learning to manage money, a joint account can work if you trust them and are comfortable with that level of access.
Ask your bank which type they offer for youth accounts. Some banks use the term "youth account" for custodial accounts only and do not offer joint accounts to minors. Others let you choose. If teaching your teen financial responsibility is the goal, a custodial account with regular conversations about the balance is often more effective than a joint account.
Interest rates, fees, and account features to compare
Youth savings accounts at large banks typically pay 0.01% annual percentage yield (APY) or less, meaning a $1,000 balance earns less than $1 per year in interest. Credit unions and online banks may pay 0.05% to 0.25% APY, which is still modest but noticeably more. Before you open an account, check the current rate on the bank's website or call and ask what rate they are paying on youth savings accounts right now—rates change frequently.
Most youth accounts have no monthly maintenance fee, but some banks charge a fee if the balance falls below a minimum (often $25 or $100). A few charge a fee for paper statements or if you do not log in for a certain period. Read the account terms carefully or ask the bank directly: "Are there any monthly fees, and if so, what would waive them?" Avoid accounts with fees that would eat into your child's small balance.
Some youth accounts include features like automatic transfers (you can set up a weekly deposit from your checking account to your child's savings), mobile banking so your child can check the balance on a phone, and alerts when money is deposited or withdrawn. These features are nice to have but not essential. The most important thing is that the account is free or nearly free and pays a rate that is not actively working against your child's savings.
What happens when your child turns 18 or 21
When your child reaches the age limit set by the bank—usually 18, sometimes 21—the youth account automatically converts to an adult account, or the bank sends you a notice that you need to convert it. In most cases, the conversion is automatic and seamless: the account stays open, the money stays in it, and your child simply gains full control. You will no longer be able to see the balance or make decisions about the account without your child's permission.
Some banks require you to visit a branch or call to complete the conversion. A few banks close the youth account and ask your child to open a new adult account, though they usually waive any opening fees. Check your bank's policy before your child's 18th birthday so you are not surprised. If your child is moving to a different bank or wants to close the account and move the money, do that before the conversion happens—it is easier to manage while you are still listed as the account owner.
How to teach your child to use the account
Opening the account is the first step; using it consistently is what builds the habit. Help your child set a specific savings goal—a video game, a laptop, a trip—and calculate how much they need to save each week or month to reach it. Let them deposit money themselves (in person at a branch or through a mobile app if the bank offers it) so they see the balance grow. Many children find it motivating to watch a number increase over time.
Review the account together once a month. Show your child how interest is being added, even if it is only a few cents. Talk about why saving matters: what they are saving for, what they could do with the money, and how waiting to spend it changes what they can afford. If your child earns money from chores, a part-time job, or gifts, encourage them to put a portion into savings rather than spending it all. The account is a tool for learning; your involvement and conversation are what make it work.
Frequently Asked Questions
Can I open a youth account if my child does not have a Social Security number?
Yes. If your child does not have a Social Security number, you can use an Individual Taxpayer Identification Number (ITIN) instead. Some banks may ask additional questions about why your child does not have a Social Security number. Call your bank ahead of time to confirm they will accept an ITIN and what other documents they need.
What is the minimum age to open a youth account?
Most banks do not set a minimum age—you can open an account for a newborn if you want. However, your child will not be able to use the account independently (make deposits, check the balance online) until they are old enough to understand how it works, usually around age 8 or older. For very young children, the account is mainly a place for you to save money on their behalf.
Can my child have more than one youth account?
Yes. Your child can have accounts at multiple banks. Some families open one account for regular savings and another for a specific goal like college. However, each account requires paperwork to open, and managing multiple accounts can be confusing. For most children, one account is enough to learn the basics.
Will opening a youth account affect my child's credit score?
No. A savings account does not appear on a credit report and does not affect credit scores. Credit scores are based on borrowing and repaying loans, not on saving money. Your child can have a savings account for years without building any credit history.
What happens to the money if I close the account?
The money belongs to your child (or to you, if it is a custodial account where you are the legal owner). If you close the account, the bank will give you the balance as a check or transfer it to another account you specify. The money does not go to the bank or disappear.