Opening a bank account is one of the most important things a young person can do, but how old do you have to be to open a bank account?
This article will cover the eligibility criteria, what you need to open a bank account for a minor, what happens when they turn 18, why you should open a bank account for your child, and essential things to note.
What Is the Bank Account Eligibility Criteria?
The bank account eligibility criteria in the United States generally requires the person opening the account to be the following:
- A US citizen.
- Have a government-issued ID.
- Be classed as an adult (be 18 years or older).
- Have a co-owner if the person opening the account is not of legal age yet.
What Do You Need to Open a Bank Account?
In addition to the criteria above, you also need to have a minimum opening deposit and maintain specific balance requirements stipulated by the bank.
How to Open an Account for a Minor
In the United States, anyone under 18 is classed as a minor. Therefore, it is possible to open a bank account for a minor, but a parent or legal guardian must open the account for them.
Can You Open a Bank Account at 16?
In the United States, you need to be 18 and above to open a bank account by yourself. Therefore, if you are 16, you can have a parent or legal guardian open an account for you.
Can I Open a Bank Account at 17 by Myself?
Unfortunately, if you are 17 and want to open a bank account, you will need an adult to open the joint account with you.
What Do I Need to Open a Bank Account For My Child?
When you are opening a bank account for your child, and they are classed as a minor, you will need to have the following:
- Your child's name, birth date, and social security number.
- Picture identification of yourself. For example, your driver's license or passport.
- Your social security number.
- Personal information, including email address, phone number, and home address.
- The initial deposit, such as cash or checks.
Remember that this can be useful if you want to help your child build credit.
Why Should You Open an Account for a Minor?
Opening a bank account for a child can teach them several lessons, including responsibility and independence. For example, you are teaching them to stay focused on financial goals.
In addition, in a financial sense, it can show how their money will grow in the bank accounts due to compound interest. If you are opening bank accounts for people under 18, this is one of the rites of passage of being an official adult in the United States.
What Happens When a Minor Turns 18?
When a minor becomes an adult, all the money in the account is theirs. If there were restrictions on what the minor could do with that bank account, the restrictions might get lifted. If the minor needs their own bank account, it is possible to remove the adult from the account or open a new account when the minor turns 18.
Things to Know Before Opening a Bank Account
Whether you are opening a bank account for your child, or you are a minor looking to get started, there are a few things everybody needs to know when opening up a bank account:
- Choose What Type of Account You Want: Choosing between standard checking or savings accounts is the best place to begin. However, there are also different types of bank accounts, including Certificate of Deposit Accounts (commonly abbreviated to CDs) and Money Market Accounts (MMAs).
- Decide How Much Money Needs to Go Into the Account: As banks need a minimum starting balance and may also have monthly service charges, it's important to decide how much money you can set aside to go into your bank account.
- Do You Need a Physical Location?: Many people choose to bank online. However, if you need a physical branch, this may be harder to come by, especially if you need to use their ATMs.
- Check the Interest Rates: One of the most distinguishing features of checking accounts is the interest rates. They can vary wildly, which is why you need to pay attention to the different interest rates banks offer.
Conclusion
Opening a bank account is something we all have to do, and even if you have a child under the age of 18, it's never too early to teach them the importance of financial management. With all the information we have provided, your child is ready to take a step towards independence and responsibility!
