Minors are an important chunk of the world, and as such, they must be able to open a bank account on their own. As a parent or legal guardian, you may want to assist your child in opening an account, but this is not necessary. Can minors open a bank account? Yes, they can. The process for opening an account for minors is the same as it would be for anyone else.
Advantages of Having a Bank Account for Minors
- It is a good way to teach your child about money management.
- It helps teach them how to save.
- It teaches them financial literacy.
- It helps them learn how to make smart financial decisions.
How to Open a Bank Account for Your Minor?
If you are not yet 18 years old, then your parents or guardians will have to act as the legal representatives and sign up for the account on your behalf. A parent or guardian must be present when opening an account at any branch of the bank in order for their child under 18 years old to open an account.
The parent or guardian should bring along their valid identity card (passport/driver’s license/other form of photo ID) as well as their own proof of address document (e.g., utility bill).
Types of Accounts for Minors
There are several types of accounts that minors can open. As per SoFi, “It can also be worth comparing accounts to see which institution offers the best fees, rates, and other features specifically for minor accounts.” Here is a comprehensive list:
- Savings account. A savings account is an account where the minor can park his or her money, often with the intent to save it for later use (e.g., college tuition). Many banks offer monthly interest rates on these accounts, so minors need to check out all the details before making their decision
- Checking account. A checking account allows you to write checks and make withdrawals from an ATM machine as long as you have enough funds in your balance, which can be posted either through direct deposit or through a cash deposit at the bank branch.
- College savings account (CSA). These types of accounts allow parents and guardians to set aside money for their children’s future education needs by placing funds into CDs at specific rates based on length of investment term; however, CSA’s are typically not available until after high school graduation day has passed!
Minimum Requirements
- You must be at least 12 years old to open a bank account.
- You need to provide your social security number.
- You need to have a valid ID and proof of address (if you don’t live in the U.S., you’ll also need proof of citizenship).
Documents Required
When you are opening an account for your minor child, you need to provide the following documents:
- A valid government-issued ID of the parent or guardian signing the application form. It could be a driver’s license, passport, or state-issued ID card.
- A birth certificate which shows your child’s name and date of birth. You will also need a copy if it’s not in English.
- A social security card for each minor listed on the application form (this can be obtained from their school).
Remember that you do not need to open a savings account for your minor child. There is no legal obligation to open an account unless you are required by law or want to set up an automatic transfer of funds into the account.
