If you’re a parent who wants your child to have access to their own bank account, there are several things you should consider. In most cases, minors cannot open an account on their own because they don’t meet the requirements in terms of age or income level. However, parents can open accounts on behalf of their children (or even other family members) under certain circumstances. If you’re interested in knowing, “Can minors open bank accounts?”, read on!
Can a Minor Open an Account?
The answer is yes. Minors are permitted to open accounts at banks, credit unions and other financial institutions. However, it’s important to understand how these accounts differ from those that adults can open for themselves. When a minor creates an account in their own name, they have full control over all activity on the account up until they reach age 18 (or sometimes 21). As per the experts at SoFi, “After reaching legal adulthood, a minor may need parental or guardian consent before making any changes to their banking information or assets held within the account.”
Requirements for Opening a Minor’s Bank Account
You can open a bank account for your child when he or she is at least 16 years old. And it’s not necessary that the minor is in college; anyone who is under 18 can have his or her own savings account. However, minors are required to have a parent or legal guardian cosign on the account. The co-signer must be at least 18 years of age.
How to Open a Bank Account for a Minor
To open an account for your child, you must be the minor’s parent or legal guardian. If your child is married, their spouse can sign on as well. When you go to open the account in person, bring along the minor who will be using it and get them to come with you so they can sign off on it too.
The bank will have a form where both parents must consent for their children to have accounts and should also provide a copy of this form for each parent.
Is Joint Ownership Appropriate?
Joint ownership is when two or more people own a single account. Joint accounts can be opened by any two or more individuals and are often used by a parent and child or two siblings.
Joint accounts work well when you want to share the cost of an item with someone else, like if you’re buying furniture together as a couple.
If you have no credit history yet, it might make sense for your parent (or another family member) to add you as an authorized user on their account so that the lender can see your payment history. It also shows lenders that both parties will be responsible for repaying the debt—so if one party misses payments, the other party won’t be held liable for them either!
In the end, there are many ways minors can be account holders. Their parents or guardians can open an account for them, and their name on the account will be under their care. Many banks allow this option because it is easy to manage and keeps track of all of their money. It also allows parents to teach their children about how finances work early in life, so they will have a better understanding when they get older!