
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Updated . What changed?
Opening a bank account in your child’s name can help them learn how to save money and budget for big purchases. But minors will need a parent as a joint account holder.
Minors can’t open a bank account by themselves. They’ll need a parent or guardian listed on the account as a joint owner. Specific steps vary by institution, but this is generally how you can open a kids bank account:
Opening a bank account for your child is easy, but you will need to supply a couple of important pieces of documentation before your kid can start making deposits. What documents you’ll need may vary from bank to bank, but will likely include some combination of:
Generally, the parent or guardian must be at least 18 years old and the child must be under the age of 18 to open a kids bank account. But some banks may impose stricter age requirements for kids. For example, the Citizens Bank College Saver account is for children under the age of 12, while the Wells Fargo Teen Checking account is for kids age 13 to 17.
It depends on the bank. While some banks will let you open an account online, others will require you to visit your nearest branch in person to prove your identity. If you’re able to open an account online, you may be asked to upload photos proving yours and your child’s identity.
Even though a kids bank account is in the child’s name, the parent has full access to the account as a joint owner. This means that they can deposit and withdraw funds as they wish. The only exception is if the bank account is jointly owned by another family member — such as a grandparent or aunt or uncle.
Yes, there can be tax implications for any unearned income, including interest, dividends and capital gains. How taxes work will depend on what type of account you’re setting up.
Once your child’s bank account starts earning interest, their investment income is subject to what is referred to as the “kiddie tax.” Any investment earnings over $2,100 are taxed at the rates that apply to trusts and estates. This kiddie tax applies to investment income of children under 19 years old and full-time college students under the age of 24.
Here are the rates for 2019:
If taxable income is between: | The tax due is: |
---|---|
$0 – $2,600 | 10% |
$2,601 – $9,300 | 24% |
$9,301 – $12,750 | 35% |
$12,751 + | 37% |
It depends. If they make more than $10,500 a year in interest and other unearned income, the child will need to file an income tax return — or you’ll need to file one in their name — using form 8615. If they make less than $10,500 a year, you can either file in your child’s name or report it on your own income taxes using form 8814.
Unearned interest is subject to the Kiddie Tax if someone is:
Additional requirements can apply in some circumstances. To determine if you or your child needs to file a tax return, visit the IRS Kiddie Tax webpage.
As of 2019, if you gift more than $15,000 to a single person in a year, you’ll need to file a gift tax return with the IRS. If you have a spouse, they can also gift up to $15,000 per year before they need to file taxes.
There are several factors you should consider when comparing children’s bank accounts, including:
A kid’s bank account works pretty much the same as an adult’s bank account, but a parent will need to be listed as a joint account owner. Your child can make deposits and withdrawals into and from their account, and they can earn interest on money kept in a savings account. If they’re opening a checking account, they’ll likely have a much lower spending limit on their debit card, and some banks will allow you to track their purchases online.
Children’s bank accounts generally won’t charge any ongoing monthly fees, but you should always check with your bank to make sure.
There are both savings and checking accounts available for children, though checking accounts tend to have a higher minimum age. Many banks offer savings accounts for children of any age, including accounts for babies.
You can also open an account that your kid won’t have access to until they come of age, which is usually 18 or 21, depending on your state. A custodial account allows you to continue adding money as your kid grows up so that they can use it to pay for college or any other expense when they’re older.
Kids bank accounts are offered by a wide range of US banks and credit unions. Opening an account with your current financial institution can help save time, but it’s worth shopping around to see which account offers the best interest rates and features. Compare children’s bank accounts to find one that’s the right fit.
Acorns alternatives offer lower fees and more investment options. Learn more.
Help your child learn to spend and save wisely with a virtual, COPPA-compliant debit card.
A health savings account (HSA) can help you get prepared for your retirement. Learn more.
Invest in your child’s future and encourage others to do so, too. Learn about EarlyBird.
Traditional IRA or Roth IRA? Find which is best for you.
A Roth IRA is a retirement savings account with special tax benefits. Learn more.
Current Revolut users can get a free prepaid card for their kids between the ages of 12 and 17.
TAB Bank’s high-yield savings account has a competitive APY, but it’s probably best for truckers.
Earn 0.5% on your total account balance — no strings attached.
Coverdell ESAs are tax-advantaged accounts that help you save for your child’s college expenses.