Everyone should have a savings account – regardless of their age. For those that have kids, every parent should open a savings account for their child. Banks actually restrict who can and can’t have a savings account. Typically, a minor won’t be able to open their own separate savings account. Some banks won’t let anyone under the age of 16 have a savings account, but it just depends upon the banks. Anyways, almost every bank will require the parent to open the minor’s savings account and have it be a joint account between the minor and parent. Let’s take a look at the whole process.
What You’ll Need
Obviously, you can’t just go down to the bank and get handed a savings account. You’ll need a few things to open up the account, which will include information from both you and your minor child. Don’t leave anything at home or you might not be able to open the account. So then, here’s a list of what you’ll need to open this savings account for your child:
* Personal information for both of you.
* Social security numbers for both of you.
* Photo I.D. of the minor (and possibly yourself)
* Your account information (your bank card at the very least)
* Money for an opening deposit.
It should also be noted that you usually have to have an account with the bank, so you might as well head to your bank to open the account. Also, some banks might require more information than previously listed. Just make sure you have the previously listed items at the very least when you head down to the banks. Oh, and you should probably bring your child too.
At the Bank
When you get to the bank, you’ll simply need to ask to speak to an account representative. Quickly and smoothly, they’ll run you and your minor through the account opening process. They will explain any of your questions and open the account for you. Obviously, you should consider asking some of the following questions:
* How much access does my child have to this bank account?
* What happens if they overdraw the account?
* What happens if someone steals the card and manages to take money out of the account?
* Can I set daily withdrawal limits for this account?
Just ask anything that happens to be on your mind. Also, you can let your child ask any questions they might have. The account should be opened the day you go into the bank or the following business day. Once that happens, you and your child will have access to the account, but you can set different limitations on it that you see fit. Make sure that you keep the account fully funded so that it doesn’t get closed on you and your child. Obviously, the account should always have money in it because it’s your child’s savings account.
Other Information
Once your child turns 18, the account will convert to their name completely. You will no longer have any control over the account, and they will be responsible for it in its entirety. At that point, your child can change their daily withdrawal limits and do anything with the account that they want to.
Opening a savings account for your minor is a great idea. Unfortunately, only a few major banks will allow you to open an account for a child. They will all require that it be a joint account between you and them too. It is still a great idea to open this account because all children should have some form of savings building up as they age. So then, head down to your bank and get your minor child a savings account for the future.
