Washington, D.C. – The Conference of State Bank Supervisors (CSBS) has released an online, interactive map outlining the requirements in each state for opening a bank account for a minor.
The map, available at facts.csbs.org, provides information that banks can use to better understand state-specific laws on providing bank accounts to minors. Using this information, financial institutions can better determine whether, and to what extent, they are able to provide minor bank accounts. For instance, the map identifies which states explicitly permit youth accounts without conditions, states that permit these accounts but have conditions such as parental consent, and states that are silent on the matter.
Community banks across the country have expressed interest and excitement in new ways to encourage financial literacy. In interviews with their state regulators published in the 2016 Community Bank Research Conference publication, bankers shared how they are working with regulators to establish youth savings accounts, using marketing dollars for lessons on fiscal responsibility, and partnering with schools to teach students how to make their own budgets. This map provides one additional tool for banks looking to help their customers become more fiscally responsible.
John W. Ryan, President and CEO of CSBS, explained: “Financial literacy is the bedrock of money management. And we encourage banks to foster this learning through direct experience with young adults. Through our interactive map, banks can ensure that their programs are compliant with state laws, and young adults and their families can have confidence in using bank programs.”
While the map will be updated when more information is available, state law may change between updates. Depository institutions should consult with their legal counsel and state regulator for the latest applicable state law requirements.