How to open a bank account for a minor online: a parent's checklist
You want to open an account for your 14-year-old tonight, from the couch. Often you can start online, but whether you can finish online depends on the bank and the type of account. No federal rule decides it.
No federal law prohibits minors from opening savings accounts, because a deposit account is a contract governed by state law, and states define "minor" differently. So the order that saves you phone calls is: pick the account type first, then ask the bank whether the whole process can happen online.
Five steps follow, with a table that settles joint versus custodial, the documents a bank must collect, and a four-week plan that turns the new account into a lesson.
Step 1: Choose joint or custodial
Three arrangements are worth knowing. Your bank may use different names for them, so ask which ownership type sits underneath.
| Type | Who owns the money | Who can withdraw | Debit card for the child | FDIC coverage | Ask the bank |
|---|---|---|---|---|---|
| Joint account (parent and child) | Both co-owners | Co-owners have equal withdrawal rights | Bank-specific | Each co-owner is insured up to $250,000 across joint accounts at that bank | Can I set alerts or limits? |
| Custodial account (state UTMA or UGMA) | The child | The custodian manages it; the child cannot withdraw without the custodian's approval | Federal guidance says a custodial minor should not get a card that permits withdrawals | Insured as the child's single account, up to $250,000 | When and how does it pass to my child under our state's law? |
| Teen or student account with a parent co-owner | Set by the bank's terms | Set by the bank's terms | Bank-specific | Depends on whether it is joint or custodial underneath | Is this joint or custodial underneath? |
Your child's age may limit the choices, and that varies by bank.
The rule of thumb: choose joint, or a teen account with a parent co-owner, when your child needs to spend and practice with a card. Choose custodial when the money is meant to sit in your child's name and stay put.
Each choice has a price. A joint account gives both owners equal withdrawal rights, which is what lets your child practice, and it also means your child can move the money. A custodial account fences the money off, but the money belongs to the child, not to you, and the arrangement is governed by each state's Uniform Transfers to Minors Act or Uniform Gifts to Minors Act (UTMA or UGMA). Ask the bank how and when the account passes to your child.
Step 2: Check whether the bank lets you finish online
The bank decides. Federal guidance on minors' accounts is silent on online versus in-branch opening, and some states may not allow minors to open their own accounts. In those states a parent can still open the account for the child, and the CFPB suggests a parent consider putting both names on it.
On a bank's account-opening page, look for the words "minor," "youth," "teen" or "custodial." If you do not see them, call and ask two questions. Can the whole process be done online, or does it need a branch visit? And which account types are open at your child's age?
This is general information, not legal advice, and the rules vary by state. The interagency guidance is dated February 2015 (citations updated November 2017) and the CFPB post is labeled archived content, so confirm the specifics with your bank before you sign.
Step 3: Gather the documents
The bank has to collect four things before it opens any account. The interagency guidance says an institution must obtain a name, date of birth, address and identification number from its customer before opening an account, and when a parent opens the account for a minor, the parent is the customer. The rest of the list is what banks commonly ask for.
| Item | Who provides it | Why |
|---|---|---|
| Name, date of birth, address and identification number | You, as the person opening the account | The federal customer identification rule requires the bank to collect these from its customer. Ask whether the bank also wants your child's details |
| Government photo ID | Parent | Many banks require one, such as a driver's license or passport |
| A second document, if asked | Parent | The same CFPB checklist lists a Social Security card, a bill with your name and address, or a birth certificate |
| Opening deposit | Parent | The CFPB checklist says you usually need an initial deposit between $25 and $100 |
| Minimum balance rule | Ask the bank | It may differ from the opening deposit and is what avoids or reduces fees |
For a U.S. person the identification number is a taxpayer identification number, and the CFPB checklist names a Social Security number or an ITIN among the numbers banks accept. Ask your bank which it takes for a child; do not assume.
Step 4: Read three things before you sign
- Fees and the minimum balance. Ask what you must keep in the account at all times to avoid or reduce fees, and look at monthly, ATM and transaction fees.
- The overdraft choice. For debit cards, Regulation E lets a bank require you to choose, as a step in opening the account, whether to opt in to overdraft payment of ATM and one-time debit card transactions. Decide on purpose rather than clicking through, because it is a teen's first brush with borrowing; teaching teens about credit picks up from there.
- FDIC insurance. Deposits are insured to at least $250,000 at each FDIC-insured bank, and the FDIC's BankFind Suite confirms whether your bank is one.
Step 5: Run the first 30 days as a lesson
A new account teaches nothing on its own. Treat the first month as a lesson, not paperwork.
| Week | What your child does | What you do |
|---|---|---|
| 1 | Opens the app and makes the first deposit | Set up alerts |
| 2 | Matches each purchase to the transaction list | Look together without correcting |
| 3 | Sets a savings goal and an automatic transfer | Help pick a goal worth waiting for |
| 4 | Reads the first statement | Check for fees together |
For conversation starters by age, the CFPB's Money as You Grow groups advice for parents by age, and it says it is not too early, or too late, to start talking about money. If your child is a teenager, how to teach teenagers about money goes further.
What comes after the account?
A bank account holds money. It does not teach investing, and putting real money into the market is a different account and a different decision for your family. For that, see custodial brokerage accounts for teens and 529 vs custodial accounts.
If you want your teen to practice buying and selling first, with none of the money at risk, Rapunzl's real-time simulator gives students a simulated $10,000 portfolio at live Nasdaq prices. A parent's guide to choosing a safe simulator covers what to look for.
Frequently Asked
Questions
We do not rank banks. Compare fees, the minimum balance, the overdraft choice, FDIC insurance and any parent controls, and read each bank's fee schedule before you decide.
The federal guidance covers savings accounts: no federal law prohibits minors from opening them, and state law and each bank's policy govern the rest. Whether a young child can have a checking account at all is the bank's decision, so ask. A parent can open a custodial or joint account for the child; ask which the bank offers.
No federal law prohibits a minor from opening a savings account, but the account contract is governed by state law, and the CFPB has said some states may not allow minors to open their own accounts. Ask the bank what it requires at 17.
Yes, at an FDIC-insured bank. Custodial (UTMA and UGMA) deposits are owned by the child and insured as single accounts, and each co-owner of a joint account is insured up to $250,000 across joint accounts at that bank. Accounts at federally insured credit unions are covered by NCUA share insurance instead, also up to $250,000, and the NCUA's Credit Union Locator confirms whether a credit union is federally insured.
The federal rule requires an identification number from the bank's customer, which is the parent when a parent opens the account for a child, and for a U.S. person it is a taxpayer identification number. Whether the bank also asks for your child's number is its own policy, so ask which numbers it accepts.
See how Rapunzl works for families once the account is open and your child is ready to practice investing.
By Myles Gage, CEO & Co-Founder at Rapunzl.