Question from Bob, At What Age Can You Open a Bank and Brokerage Account in the USA?
Answer from AI:
In the United States, the age at which you can open a bank account or a brokerage account varies depending on the type of account and the specific policies of the financial institution. However, there are general age requirements that apply in most cases.
Opening a Bank Account
Typically, you must be at least 18 years old to open a bank account on your own. This is because, under contract law, you must be of legal age to enter into a binding agreement, which is what a bank account essentially is. However, there are exceptions:
- Joint Accounts: If a parent or guardian is also on the account, a minor can be a joint owner.
- Custodial Accounts: These are accounts set up by an adult for the benefit of a minor. The adult has control over the account until the minor reaches a certain age, usually 18 or 21, depending on the state.
Opening a Brokerage Account
Similar to bank accounts, you generally need to be 18 to open a brokerage account on your own. However, there are also options for minors:
- Custodial Accounts: An adult can open a custodial brokerage account for a minor. The adult controls the account until the minor reaches the age of majority.
- Joint Accounts: Some brokerage firms allow minors to open joint accounts with an adult.
State Variations
While these general rules apply across the United States, there can be variations from state to state, particularly when it comes to the age of majority and the rules for custodial accounts. For example, in some states, the age of majority is 21 instead of 18.
Consulting a Legal Professional
If you’re considering opening a bank or brokerage account and you’re under 18, it’s a good idea to consult with a legal professional. They can provide personalized advice based on your situation and the laws in your state.
For more information, you can refer to the Consumer Financial Protection Bureau or the Financial Industry Regulatory Authority.
The answer is written by AI.
The text above is written by AI, i.e., a computer.
Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.
Related Posts
Please comment in the comment section below if something is incorrect.