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How to Open a Bank Account When You're Under 18 (And Why You Need One Yesterday)

Nobody taught you this. Not in school, not at home, and definitely not on social media, where everyone's talking about crypto and investing but nobody mentions that you don't even have a bank account yet. That's not your fault. The financial system wasn't designed to explain itself to you. But you need a bank account, and you need one before you start making any real money, because every dollar you earn without one is a dollar that's harder to keep, harder to grow, and harder to use. Here it is.

Here's How It Works

If you're keeping your money as cash right now, you're in a position that feels safe but isn't. Cash can be lost, stolen, or spent without any record. It can't earn interest. It doesn't build any financial history that helps you later. And in a world where most transactions happen online -- paying for college applications, buying textbooks, splitting costs with friends -- cash locks you out of entire systems. According to the FDIC's 2023 National Survey of Unbanked and Underbanked Households, approximately 4.5% of U.S. households are completely unbanked, and those households disproportionately face higher costs for basic financial services like cashing checks and paying bills. You don't want to be in that category any longer than you have to be.

Opening a bank account when you're under 18 requires what's called a custodial account or a joint account. That means an adult -- a parent, guardian, grandparent, aunt, uncle, or another trusted adult -- has to be on the account with you. Their name goes on it alongside yours. They'll need to be present when you open it, and they'll need their own ID. This is a legal requirement, not a suggestion, and it exists because minors can't enter into binding contracts in most states.

Here's what you'll need to bring: a government-issued ID (if you have one) or a school ID, your Social Security number, the adult co-signer's government-issued ID, and a small opening deposit. That deposit is often as low as $5 at a credit union or $25 at a larger bank. Some online banks require nothing to open. You walk in, fill out paperwork (or do it online), hand over the deposit, and you have a bank account. The whole process takes about 30 minutes in person, less if you do it online.

When you're choosing where to open that account, the only things that matter are these: no monthly maintenance fees, no minimum balance requirements, free ATM access (or ATM fee reimbursement), and a functional mobile app. That's it. Don't get distracted by promotional offers or brand recognition. Credit unions are often better than big banks for this because they're nonprofit institutions owned by their members, which means they're less likely to nickel-and-dime you with fees. The National Credit Union Administration (NCUA) insures credit union deposits the same way the FDIC insures bank deposits -- up to $250,000 per depositor. Online banks like Ally or Discover also tend to have no-fee accounts with higher interest rates than what you'll find at a Chase or Bank of America branch.

Speaking of insurance: when you put money in an FDIC-insured bank or an NCUA-insured credit union, that money is protected by the federal government up to $250,000. If the bank fails -- actually goes out of business -- you still get your money back. This isn't a scam and it isn't a marketing gimmick. It's been the law since 1933 when the FDIC was created after the bank failures of the Great Depression. Your money in a legitimate bank or credit union is safer than cash under your mattress by every measurable standard.

The Mistakes Everyone Makes

The first mistake is picking a bank because it's nearby or because your parents use it. Proximity matters less than it used to because you'll do most of your banking through an app. And your parents' bank might have fee structures that don't work for someone with a small, irregular income. A bank that waives the monthly fee when you maintain a $1,500 balance is fine for a working adult. It's a trap for a teenager who sometimes has $47 in their account.

The second mistake is not reading the fee schedule. Banks make a lot of money from fees: overdraft fees, monthly maintenance fees, out-of-network ATM fees, paper statement fees. According to the Consumer Financial Protection Bureau (CFPB), overdraft fees alone cost Americans billions of dollars annually. Before you open any account, ask or look up exactly what fees exist and how to avoid them. If the answer is complicated, that's not the right bank for you.

The third mistake involves the co-signer situation. If the adult on your account is someone who might access your money without your permission, you have a real problem. A custodial account gives the co-signing adult legal access to the funds. If you're in a situation where a parent or guardian isn't trustworthy with money -- and plenty of people are in that situation, no judgment -- you have a few options. You can ask a different trusted adult (a grandparent, an older sibling over 18, an aunt or uncle). You can wait until you're 18 and open your own account. Or you can use the bridge strategy below.

The fourth mistake is ignoring the account once you open it. Check your balance at least once a week through the app. Set up transaction alerts so you get a notification every time money moves. This takes five seconds and protects you from unauthorized charges, billing errors, and your own spending blind spots.

The Move

If you can open a bank account right now, do it this week. Call a local credit union, check their website for the requirements, and set up a time to go in with your co-signer. Open a checking account and a savings account at the same time, even if you're only putting $5 in each. The checking account is for spending. The savings account is for not spending. Having both from the start builds the habit of separating those two functions.

If you genuinely can't open a bank account -- if there's no trusted adult available, if your documentation situation is complicated, if you're in a living arrangement where this isn't possible right now -- you're not stuck. Prepaid debit cards like Greenlight or Current function as a bridge. They let you receive direct deposits, make purchases, and manage money through an app. They're not perfect: some charge monthly fees ($4.99-$9.99 is common), they don't build your banking history, and the FDIC protection depends on how the card company holds the funds. [VERIFY: Current FDIC insurance status for Greenlight and Current prepaid cards.] But they're better than cash-only, and they let you start building the habits you'll need when you do open a real account.

The point isn't perfection. The point is getting your money into a system where it's trackable, protected, and positioned to grow. Every financial move you'll make in the next five years -- getting paid, saving, building credit, paying for college -- starts with having somewhere for that money to live.

This is part 1 of the Money When You Have None series. Next: Your First Paycheck Is a Lie -- Taxes, Deductions, and Why You Got Less Than You Expected

Related reading: Your Credit Score at 18 | The $500 Emergency Fund That Changes Your Entire Life | How to Budget When Your Income Is Inconsistent