If you’re considering opening a bank account for your child, you may think that all the rules and requirements for minors have changed since you first opened yours back in the day, but that’s not the case. While the banking industry has gotten increasingly restrictive, kids can still open an account with their parent’s permission as long as they are ten years old or older and understand what it means to be responsible with money. We’ll take you through everything until you know how old to open a bank account a child has to be.
Yes, but with Restrictions
Children under the age of 18 usually can’t open a bank account on their own. But, if you have a parent or guardian willing to be a co-owner on the account, most banks will allow it.
What Is the Right Age to Open an Account?
The right age to open an account really depends on the child and the parent. Most banks have a minimum age requirement of 18, while others allow children as young as 10 to open an account with parental supervision. As per the experts at SoFi, “If you’re interested in opening an account and are unsure of age requirements, you may want to contact a few different financial institutions to ask if they have an account that suits your needs.”
Three Things to Consider:
1. Can your child understand the responsibility of maintaining their own money?
2. Can they create and maintain a budget for themselves, or do they need your help in this area?
3. Do you want them to access their money on the go, or is it better for them to have an account that limits them from withdrawing too much at once?
Federal law requires anyone under 18 years old to get parental consent before opening any type of bank account. However, these requirements may vary depending on what state you live in.
How Does a Child Access Their Money?
When your child is ready to start using their account, they can typically do so through an ATM, online banking or mobile app. If they need to speak with someone in person, most banks allow children to do so as long as they’re accompanied by a parent or guardian.
For an account with a debit card, your child can use it to make purchases or withdraw cash from an ATM. However, if you have overdraft protection, there is typically a limit to how much money they can withdraw at one time. Your bank will alert you to how much available funds your child has in their account.
When Does My Child Need Their Own Account?
Even if your child has savings and never plans on using them, it’s still important for them to get into good financial habits from a young age. Opening a checking account teaches them the importance of saving, budgeting and handling debt responsibly. It also teaches responsibility when it comes to credit cards. As soon as they are old enough, parents should teach kids the importance of understanding credit scores and how to build up theirs before applying for loans or cards.
What About Fees?
When it comes to fees, there are a few things you should know. First, some banks may charge a monthly fee for kids’ accounts. Second, if your child wants to use an ATM, he or she may be charged a fee.
It might surprise you that children as young as ten can open a bank account, but some restrictions exist. The child must have a Social Security number, and a parent or guardian must open the account.
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