A high-yield savings account is available to some 17-year-olds, but many banks require a parent or legal guardian to apply with you. As of, whether you can open one alone depends on your state's law, the bank's policy and the specific savings product.
Your Account Options at Age 17
| Account type | Can you open it at 17? | Who controls the money? | Best for |
|---|---|---|---|
| Joint high-yield savings account | Usually, with an adult | You and the adult co-owner | Saving money you need regular access to |
| Custodial UGMA or UTMA account | Usually, with an adult | The adult custodian | Long-term savings you do not need to withdraw immediately |
| Individual high-yield savings account | Sometimes | You alone | Teenagers whose bank and state allow individual accounts |
| Parent-owned youth savings account | Yes, at participating banks | The parent | Savings managed mainly by a parent |
The Easiest Option Is a Joint High-Yield Savings Account
A joint account usually lets you and a parent or legal guardian share ownership. Both owners may be able to deposit, withdraw and transfer money. That makes a joint account more flexible than a custodial account, but the adult can usually access the money too.
For example, Capital One allows a parent or legal guardian to open a Kids Savings Account jointly with a child. The account has no monthly fees, offers a high savings rate and gives both the adult and child account access. When the child turns 18, they can open a separate 360 Performance Savings account if they want to.
Choose a joint account only with an adult you completely trust. Capital One's joint-account disclosures state that either owner may withdraw funds, transfer money or close the account without the other owner's consent. Other banks may have similar rules.
A Custodial Account Gives the Adult More Control
A custodial account is opened for your benefit, but a parent or another adult manages it as the custodian. The custodian controls the account until you reach the age of majority set by state law.
You may not be able to withdraw money from a custodial account without the custodian's approval. These accounts also often do not give the minor a debit card or independent withdrawal access.
A custodial account may suit money set aside for college, a first car or another long-term goal. It is less suitable if you want to manage the savings yourself or make frequent withdrawals.
Can You Open a High-Yield Savings Account Without a Parent?
Sometimes, but do not assume you can.
Federal law does not generally prohibit minors from opening bank accounts. State contract law and each bank's account-opening policy determine whether a 17-year-old can open an individual account. Many banks still require a parent, guardian or other responsible adult.
Some banks allow teenagers to become the sole owners of certain accounts before age 18. Bank of America, for example, says teens age 16 and older may apply as the sole owner of its SafeBalance Banking account. That is a checking account, though. It does not mean every bank will let a 17-year-old open an individual high-yield savings account.
Before you apply, check the bank's rules for:
- The minimum age for an individual savings account
- Whether a parent or guardian must be a joint owner
- Whether the account is actually high yield
- The minimum opening deposit
- Monthly maintenance fees
- Minimum balance requirements
- Withdrawal and transfer rules
- FDIC insurance coverage
What You Usually Need to Open the Account
The exact requirements vary by bank. You and the adult applicant may need:
- Full legal name
- Date of birth
- Residential address
- Social Security number or ITIN
- Phone number and email address
- Government-issued identification
- An initial deposit, if required
Capital One, for example, asks for identifying and tax information for both the adult and child when opening its Kids Savings Account.
Is a High-Yield Savings Account Worth It at 17?
It can be useful if you have money from a job, allowance, gifts or a side business that you do not need to spend right away. The account may earn more interest than a standard savings account, but its rate is variable and can change.
Look for an account with:
- No monthly fee
- No minimum balance requirement
- A competitive variable APY
- FDIC insurance at an FDIC-insured bank
- Easy transfers and deposits
- Clear ownership rules
- Dependable access to your money
The FDIC says deposits at insured banks are generally protected up to the applicable insurance limits. Coverage for a custodial account may pass through the custodian to the minor who owns the funds, subject to the applicable rules and limits.
Best Choice for Most 17-Year-Olds
Choose a joint high-yield savings account if you need regular access to your money and have a parent or legal guardian you trust.
Choose a custodial account if the money is meant to stay saved until you reach the applicable transfer age and you are comfortable with the adult managing it.
Choose an individual high-yield savings account only after the bank confirms that it allows 17-year-olds to apply without an adult.
When you turn 18, compare individual high-yield savings accounts again. Banks that require account holders to be legal adults may then allow you to open an account in your own name.