Can You Open A Bank Account At 16? (All You Need To Know!)

Open A Bank Account At 16

Although it may not be the typical way to imagine, you can open a bank account at 16. After all, there is no limit to the age one starts dealing with money. Even kids as young as age 5 can open a bank account. It differs from an adult bank account because the child is not the only signatory to the account. Since the child is below 18, they will need a parent to co-own the account

It does not mean that the money in the account belongs to the adult. No, all the money belongs to the child, just that the child is not the only signatory to the account. Most bank policies believe that anyone under age 18 still needs guidance when handling money. 

Now, you may be wondering what will happen when the child turns 18. There will be a change of signatory in such a case, and the child becomes the sole signatory to the account. It is important to remember that the bank has all the details of both the child and the adult. So, there will be no complications when it is time to make the change. All you need to do is get and fill a change of signatory form.

But, it is also important to note that some banks may have some additional requirements, although the steps will be familiar. 

Some people ask why anyone less than age 18 must open a bank account. But allow us to tell you that some parents open a bank account for their kids immediately after birth. 

Some Reasons Why Children Should Own Bank Accounts

Some Reasons Why Children Should Own Bank Accounts


There are different ways you can prove to a child that you trust them enough to be independent, and one of such is by opening a bank account for them. Through this, you let them have a sense of trust while also putting responsibility in their hands. 

Many teenagers will appreciate this opportunity and do everything possible to ensure that they do not breach that trust. So do not be surprised if you walk into their room one day and see them calculating their finances. It is also a way of bonding with your child. 

Some parents find it hard to start a conversation with their kids, but this can be helpful. For example, talking about running the bank account always makes an excellent conversation starter and helps in bonding. So, imagine starting this at an early age. 

You always let your child have a mature mindset when they know all that entails owning a bank account from an early age. 

Decision Making 

Many parents understand that they cannot always keep making decisions for their kids. So, they need to let them take the wheels from an early age. 

When a child owns a bank account, the parent is only the co-owner. However, the money in the bank account belongs to the child. So, the child is in charge of the decision-making process on how to spend the money. You will realize that the child becomes more conscious about decisions that deal with money. After all, no child will want the money in their bank account to finish.

If a child is dealing with money that is not theirs, they will lavish it without a second thought. But now, they weigh the pros and cons before making a choice. So, letting them own a bank account is an excellent way to help them build decision-making skills that aid their growth process. 

It helps them understand the value of money. 

There is a common saying that you do not know the value of something until you lose it. If you keep hoarding money from children, how do you want them to know the value of it? Parents need to let kids have experience with money to help them understand its value. 

Once your child owns a bank account and is in charge of their money, they understand that they must be careful and wise instead of being wasteful. They now know what they can get with money, and they will not want to be without it.

Now, they can understand what it means for someone to say that they do not have money. So, the child learns to adjust their reactions when they get no from others. If your child has been the wasteful type, they become more conservative when they learn and understand the value of money. And this comes as easy as opening a bank account for them. 

Financial Literacy 

Did you know that you do not need to be a financial analyst before you understand financial literacy? Understandably, the in-depth may be too technical, but one can learn the basics just by operating a bank account.

Of course, everyone strives to be financially independent in life, and it is only right to start from an early age. When a parent opens a bank account for their child, it is taken that they are equipping that child with a tool for greatness. The child begins to learn terms associated with money and banking, and they even begin to teach their friends. 

Learning can happen in many unexpected ways, and one way is by letting your child have a bank account. Imagine your child knowing how to deposit money as young as age 9. Of course, they will be above their peers. And some things are practical and not limited to the walls of a school or educational institution.

Learning the Savings Culture

Sometimes, someone at the age of 16 already has a steady inflow of money. So, it is only right that the teenager learns how to save and not squander the money. It is easy to say that you can build a piggy bank for the child. But, that only makes money easily accessible. Therefore, the right thing is to open a bank account. 

When the child gets money, they will remove some from it to put in their bank account. And, learning how to save will come in handy in the future, and they will be grateful that they learned about it from a young age. 

The table below shows financial institutions that give debit cards to kids and their limitations:

1.Greenlight Yes$1,000 daily 
2. FamZooYesTo be set by parents
3.CapitalOneYes $500 daily
4.Chase First BankingYes$500 daily
5. BusyKidYes$2,000 per transaction 


Here are some of the frequently asked questions about the feasibility of opening a bank account at age 16.

Can You Open A Bank Account At 16 Without A Parent?

While one can open and have a bank account at 16, it is impossible without a parent or guardian. It is the only limitation that comes with owning a bank account at 16. Understandably, some teens may not want their parents to access their bank account or statements regularly. But, it is something you have to cope with until you turn 18. You will always need a parent to open a bank account at 16, as you need an adult signatory to the account. 

So, it would be best to choose the super cool parent you would rather have as the co-owner of your bank account. 

What Bank Account Can A 16 Year Old Own?

A joint account is a bank account that a 16-year-old can own. It is almost similar to the type of account that spouses open. When you open a joint account, you are not the sole signatory to the account. But, you can change signatories once you become an adult at age 18. 

Some people think it cringy to have a joint account, but it is usually not always that bad. What matters is that you now have a place where you can secure your money. 

Most banks have the joint account option, so you can pick any bank you desire to open an account with as a 16-year-old. 

Can I Open A Teenage Bank Account Online?

Yes, you can open a teenage bank account online if it is your preference. Understandably, people love to do things from the comfort of their homes. But, keep in mind that it is not all banks that have this option. 

Suppose you would prefer to have a bank account with a specific bank. So, you need to carry out research and check if the bank has the option of opening a teenage bank account online. If it is not possible, you can check for other banks that have this option. But, we are sure that the majority of the banks will have the online option for teenage bank accounts. 


You can open a bank account at 16 with the help of your parent. We have highlighted the essence of owning a bank account at a young and some financial institutions that give debits cards and the limitations to expect. 

We hope you do not hesitate to open a bank account now as you are more than eligible. Happy banking!



Last Updated on February 9, 2022 by

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