Minor Account
What Is a Minor Account?
A minor account is a financial account opened for a child under the legal age of adulthood. Because minors cannot legally manage financial accounts on their own, an adult custodian or guardian typically oversees the account.
Minor accounts are commonly used for saving or investing money for a child’s future.
Why It Matters
Minor accounts help families build financial resources for children while teaching saving and investing habits early in life.
These accounts may be used to fund education, major life events, or long-term investments.
How Minor Accounts Work
A parent, guardian, or custodian opens and manages the account.
Typical features include:
- deposits made on behalf of the child
- investment or savings growth over time
- adult supervision until the child reaches adulthood
Once the minor reaches the legal age, control of the account may transfer to them.
Example
Parents opening a savings account in their child’s name to save money for college is an example of a minor account.
Minor Account vs Custodial Account
- Minor accounts refer broadly to accounts owned by minors.
- Custodial accounts are a specific structure used to manage those accounts.
FAQs About Minor Accounts
Can minors withdraw money from their accounts?
Usually only with approval from the account custodian.
Who manages a minor account?
A parent or legal guardian.
When does the minor gain control?
Typically when they reach legal adulthood.
Related Terms
