Can You Open a Bank Account for a Kid Who Is Under 18?

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Kids cannot open a bank account on their own, but you can open a custodial account or a joint account with their name on it. Read on to learn how. 

Opening a bank account is a great way to learn about money. As a result, many parents may want to open a savings account or even a checking account for their children so they can start saving money and learning how to work toward financial goals.

But, the big question is, can you open an account for a minor who is not yet 18?

The rules for opening a bank account for kids

Children who are under the age of 18 are not considered to have the legal authority to open a bank account of their own since they are classified as minors. However, this does not mean it is impossible to get a bank account for a child.

Parents, and even grandparents or other relatives in some cases, can open a bank account for a child. This could take the form of a custodial account with the parent managing and having legal authority over the child’s money. Or, parents could open a joint account with their child that is co-owned.

In many cases, banks actually offer special kids’ accounts that are linked to a parent’s account and are designed with child-friendly features in mind. These accounts are specifically designed to provide an introduction into the world of banking and personal finances, so kids can begin to develop responsible financial habits at a young age.

How to find a good bank account for your child

If you have decided to open a bank account for your child, you may be tempted to just open the account at the place where you have your current savings or checking account. But there may be better options out there.

A number of financial institutions offer dedicated bank accounts for kids and teens. These usually have features that are designed with this kind of account in mind. For example, they typically won’t charge any fees or have any specific requirements for maintaining a certain minimum daily balance — which is important, as kids may not have a ton of money to put in, and you don’t want them learning that putting cash into savings actually costs them.

A good bank account for kids will also allow parental monitoring or limits on when money can be withdrawn from an ATM; an easy and free way for parents to transfer money to kids; account alerts for parents; and even tools to help kids set savings goals, monitor their money, or receive financial education.

You will likely also want to be sure to choose a bank that has a mobile app kids can easily use so they can monitor their account independently as they get older. At the same time, though, you may also want to prioritize finding a bank that is convenient to you so your children can have the experience of physically depositing and withdrawing money sometimes rather than doing everything digitally. With so much of the financial world being done on the computer only, it’s good for kids to get to experience physically having cash once in a while.

Help your child learn financial responsibility

To find the right account for your kids, you’ll need to think about these and other features you want to prioritize and then shop around with different local and national banks to see which one is the best fit. You’ll need to help your child get their account open once you find the right one — and can then guide them in their journey of learning to manage their money wisely.

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