Opening a bank account is one of the first things you should do when you become an adult. It’s important to understand the rules and regulations that apply so you can choose the right type of account for your needs. This guide explains how to open a bank account as an underage or non-resident, including what identification and tax information are required and what consequences there might be if you don’t meet these requirements.
Rules for Opening a Bank Account
In order to open a new bank account, you must be at least 18 and have identification. You will also need to provide your Social Security number.
1099/tax statement requirement: The IRS requires all banks to submit 1099 information to the federal government for any accounts opened by non-residents of the United States.
In addition, if you’re not a U.S. citizen, then you must provide proof that you are a legal U.S resident and may have to fill out additional paperwork with your local branch office before being allowed access to an account.
Opening an account before reaching the age of consent can come back around later in life when attempting future financial transactions (for example if trying to apply for a mortgage).
How old do you have to be to open a bank account? You can open a bank account at any age, but there are some restrictions depending on which state you’re in. In most states, the legal minimum age for opening a savings account is 18.
There are also a few states that allow minors to open savings accounts with their parents’ permission (such as New York) or have lower age minimums for minors and adults who have reached the “age of majority” (which varies by state).
To open a new bank account, you will need to provide the following documents:
- A government-issued photo ID (i.e., driver’s license or passport).
- An original birth certificate (or naturalization certificate, if applicable).
- A Social Security card.
- Proof of residence (i.e., utility bill or lease agreement).
1099/Tax Statement Requirement
Most banks will ask for your Social Security number and driver’s license number to open an account. The Social Security card is used as proof of identity, and the driver’s license is used as proof of address. Some banks may also require you to provide a birth certificate or other document that proves your identity.
The Consequences of Opening an Account Before You’re Old Enough
If you open an account before your stipulated age, there are some real consequences.
- You can’t get a credit card.
- You can’t get a loan.
- You can’t get overdraft protection on your checking or savings accounts. (But if you have the funds to cover your purchases and deposits, that’s okay.)
If you want to be able to use these services in the future when they become available, make sure that any new account has a parent or guardian as a cosigner until then!
According to SoFi professionals, “If you’re interested in opening an account and are unsure of age requirements, you may want to contact a few different financial institutions to ask if they have an account that suits your needs.”
As you can see, there are different criteria for opening a bank account. However, it’s important to be aware of these requirements and ensure that your bank complies with them before you open an account. Remember that if they aren’t, you may end up with fines or other penalties!