Bank accounts aren’t just for adults. Kids as young as 13 can often open one with a parent’s help—and doing so can be a great way to teach smart money habits early.
We’ll break down how old you need to be to open a bank account, the best account types for minors, and what parents should know before getting started. Whether you’re opening an account for a toddler or helping your teen set up their first debit card, the right setup can lay the groundwork for lifelong financial confidence.
Minimum Age to Open a Bank Account
You must be 18 in most states to open a bank account on your own.
In Alabama and Nebraska, the age of majority is 19. In Mississippi, it’s 21.
That said, many banks allow minors to open accounts as young as 13 with a parent or guardian as a joint owner. Some even offer savings accounts for babies, which parents can open and manage on their child’s behalf.
Always check the bank’s policy and your state laws—both can affect the minimum age requirement.
Best Account Options for Minors
Minors have several options when it comes to banking, and the right account depends on their age, maturity, and financial goals. Whether you’re helping a child save birthday money or giving a teen more financial independence, these are the most common account types to consider:
Joint Bank Accounts
A joint bank account is an account that is owned by two or more people. For minors, a joint account can be opened with a parent or guardian, allowing them to learn about financial management while still having the support and guidance of an adult.
Custodial Accounts
Custodial accounts are bank accounts that are managed by an adult on behalf of a minor. The adult, known as the custodian, has control over the account until the minor reaches a certain age, at which point they can take control of the account themselves. A custodial account can be a suitable option for parents who want to save money for their child’s future education or other expenses.
Prepaid Debit Cards
Prepaid cards are a great option for minors who want to access funds without risking overspending. Loaded with a predetermined amount of money, prepaid debit cards act just like regular debit cards. However, when the allocated funds on the debit card are used up, it cannot be utilized again until reloaded.
Don’t know which prepaid debit card to choose? Here are the top choices for 2025.
Kids’ Savings Accounts
Many banks offer savings accounts with no monthly fees and low or no minimum balance requirements. These accounts are designed for children under 13 and usually come with parental oversight. They’re a simple way to teach young kids how saving works, and some banks even offer features like automatic transfers or goal trackers to make it more engaging.
Educational Savings Accounts for Minors
When it comes to saving for your child’s education, there are specific accounts designed to help minors and their parents. These accounts come with tax benefits that can alleviate the burden of paying for school. Let’s take a closer look at a few of the most popular options:
529 College Savings Plans
529 college savings plans are popular among parents and grandparents who want to help fund a child’s education. These plans allow you to contribute to an account and spend the money tax-free on tuition expenses, assuming you satisfy the relevant tax laws. This can include higher education costs, as well as up to $10,000 per year for K-12 tuition.
These accounts have no income or age limits and can be used for trade schools, overseas institutions, room and board, and other expenses for college or graduate school. In addition, you can make significant contributions to these accounts, making them powerful ways to save for the future.
Coverdell ESA
A Coverdell Education Savings Account (ESA) is another option for those looking to save for education with tax-favored dollars. However, not everybody is eligible to contribute to an ESA. This account is sponsored by the federal government and can be used for educational expenses such as books, tuition, computers, supplies, and even transportation.
Funds can be used to pay for K-12 and higher education expenses. Contributions are made with after-tax dollars into investment vehicles like stocks, bonds, ETFs, and mutual funds. Growth and withdrawals are both tax-free, similar to a Roth IRA. However, there are some limitations to the Coverdell ESA.
For example, contributions are limited to $2,000 per beneficiary per year, no contributions can be made after the beneficiary turns 18, and you must make under $110,000 per year to make contributions ($220,000 if filing jointly). Despite these limitations, the Coverdell ESA can still be a great way to save for education expenses.
What to Look for in a Bank for Kids and Teens
Choosing the right bank or credit union for minors is an important decision that can impact their financial future. Here are some factors to consider when selecting a financial institution for your child:
- Age restrictions: Make sure to check the minimum age requirements for opening an account. Some financial institutions may only allow minors to open accounts if they are accompanied by a parent or legal guardian.
- Account options: Look for banks that offer a variety of account options specifically designed for minors. The goal is to find a bank that provides a safe and accessible way for minors to learn about money management, save for the future, and potentially even earn some interest along the way.
- Fees: Consider the fees associated with the account, such as monthly maintenance fees, transaction fees, and ATM fees. Some banks may waive fees for minors or offer special discounts.
- Annual percentage yields: Compare the APYs offered by different banks. Although savings account APYs may be low, finding the best rate will maximize your earnings.
- Accessibility: Consider the bank’s location and availability of ATMs. Look for banks with a large network of ATMs and branches to make it easier for your child to access their funds.
- Technology: Consider the bank’s online and mobile banking capabilities. This can be particularly important for older minors who may prefer the convenience of online banking.
- Reputation: Do some research on the bank’s reputation and customer service. Look for banks with a good track record of customer satisfaction and reliable financial services.
When comparing different banks and credit unions, consider these factors and prioritize the ones that are most relevant to you and your child’s needs. With the right bank, your child can learn valuable financial skills and build a strong foundation for their future financial success.
How to Open a Bank Account if You’re Under 18
Opening a bank account as a minor is pretty straightforward, but it does require a parent or guardian to be involved. Here’s what you’ll usually need:
- ID for both the child and parent – A driver’s license, state ID, or passport is typically required.
- Social Security numbers – Both the minor and adult will need to provide theirs.
- Parent or guardian present – Whether you’re opening the account in person or online, an adult must be listed on the account.
- Choose the right account type – Decide between a joint account for shared access or a custodial account for long-term savings.
Avoiding Bank Fees as a Minor
Fees can add up quickly, especially for new account holders. Here are a few simple ways to keep costs down:
- Use in-network ATMs to skip extra charges – Out-of-network ATM fees can hit both ways—your bank and the ATM operator may charge you. Stick to the bank’s own network whenever possible.
- Pick a bank with no monthly maintenance fees – Many banks waive these fees for minors or offer student accounts with no charges.
- Avoid overdraft options for teen accounts – Overdraft protection might sound helpful, but it can lead to steep fees if the account goes negative.
Do minors pay taxes on bank accounts?
If a minor’s account earns interest, it may be subject to taxes—even if the child isn’t working yet.
Custodial accounts follow “kiddie tax” rules, which apply a higher tax rate to investment income over $2,500. Joint accounts can also trigger taxes for the parent listed on the account.
If you’re contributing large amounts or the account is earning investment income, it’s a good idea to talk to a tax professional.
Final Thoughts
A bank account can help kids build smart money habits from a young age. With the right setup, they can learn how to manage savings, track spending, and avoid common banking mistakes.
For younger children, a simple savings account is a good place to start. Teens may benefit more from a joint account or prepaid debit card with parental oversight. Just make sure to compare fees, features, and account types before making a decision.
Frequently Asked Questions
What’s the youngest age to open a bank account?
Some banks allow kids as young as 13 to open an account with a parent or guardian. For younger children, parents can open a savings or custodial account on their behalf.
Can parents open a bank account for a baby?
Yes. As long as the baby has a Social Security number, parents can open a savings account and manage it until the child is older.
Can grandparents open accounts for grandchildren?
Yes. Grandparents can open custodial accounts or contribute to 529 plans to help save for a child’s future.
When should kids get a bank account?
If a child is receiving an allowance or earning money, it’s a good time to introduce banking and basic financial skills.
Can a 16-year-old open a bank account by themselves?
Not usually. Most banks require a parent or guardian to be a joint account holder until the teen turns 18.
Is there a minimum deposit for kids’ accounts?
Many kids’ accounts have no minimum deposit, but some banks may require $5 to $25 to get started.
Can minors use mobile banking apps?
Yes, if the bank offers it. Most teen accounts include app access with features like parental controls and spending alerts.
Do kids earn interest on their savings?
Some kids’ savings accounts do earn interest, but rates vary. It’s worth comparing APYs before opening an account.
