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#1910147 - 03/31/14 07:49 PM Minor Open Checking Account
Banker Kathy Offline
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Is there some sort of law or statute that says a minor cannot open a checking account in their name only?

I thought that I had read in the PA Banking Code that a minor can open an account in their name only.

Would that apply to transaction accounts?
Thanks

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#1910197 - 03/31/14 08:39 PM Re: Minor Open Checking Account Banker Kathy
rlcarey Online
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Galveston, TX
Refer to Section 603 of the PA banking code
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#1910416 - 04/01/14 03:39 PM Re: Minor Open Checking Account rlcarey
Banker Kathy Offline
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Thanks, Does anyone out there open checking accounts for minors in their name only?

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#1910426 - 04/01/14 03:53 PM Re: Minor Open Checking Account Banker Kathy
Beachbum, CRCM Offline
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We will only open a savings account for a minor, not a checking account and only if the minor has income (read- teenager with a job).
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#1911295 - 04/03/14 04:52 PM Re: Minor Open Checking Account Beachbum, CRCM
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We do permit minors to open checking accounts individually, but do require joint with adult if debit card is issued for account.
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#1911341 - 04/03/14 05:58 PM Re: Minor Open Checking Account Banker Kathy
Beachbum, CRCM Offline
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Knee Deep in Regs
we will not issue a debit card to a minor either. Visa does not issue cards to minors.
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#1913948 - 04/11/14 07:26 PM Re: Minor Open Checking Account Banker Kathy
Banker Kathy Offline
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Does anyone open joint accounts with a minor who is too young to sign the signature card? I heard some banks are doing away with UTMA accounts and opening them as joint accounts instead.

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#1914084 - 04/14/14 02:54 AM Re: Minor Open Checking Account Banker Kathy
Deputy Dawn Offline
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Pennsylvania
Originally Posted By: bankerkathy
Does anyone open joint accounts with a minor who is too young to sign the signature card? I heard some banks are doing away with UTMA accounts and opening them as joint accounts instead.


I'm shocked that parents would do this. We have parents that still want to set up custodial accounts for children that aren't minors because they don't trust them with money. With a joint account, a 10 year old could ride their scooter to the branch and withdraw all their money.

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#1914119 - 04/14/14 02:00 PM Re: Minor Open Checking Account Banker Kathy
NotDoneYet Offline
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PA
Something like that happened at a bank I used to work for. A minor withdrew a good amount of money and bought a dirt bike. The mother gave us h___. The account was changed to 2 signatures required for withdrawal. But it didn't work well when the mom tried to withdraw money on her own. : )

We still open UTMA accounts, and more of them now than in the past.

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#1914696 - 04/15/14 07:29 PM Re: Minor Open Checking Account Banker Kathy
Banker Kathy Offline
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Thanks everyone!

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#1924252 - 05/16/14 10:57 PM Re: Minor Open Checking Account rlcarey
Michelle III Offline
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PA
I've read Section 603 of the PA banking code and it's a giant loop. It states (a) "An institution may receive deposits by or in the name of a minor"... (c) "Dealings with minor--An institution may deal with a minor with respect to a deposit account or safe-deposit agreement covered by subsections (a) or (b) of this section without the consent of a parent or guardian and with the same effect as though the minor were an adult. A parent or guardian shall not have any right in that capacity to interfere with any such transaction. Any action of the minor with respect to such deposit account or safe-deposit agreement shall be binding on the minor with the same effect as though an adult."

1. It makes it look like the parent cannot come back to the bank and claim the child was a minor and therefore did not have the capacity to open or control the account.
2. BUT Section (a) only talks about receiving deposits. NO WHERE does it mention or refer to withdrawals. So, can the bank be liable for the withdrawn funds out of a minor account based on Section 603 of the PA banking code?

Michelle

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#1924271 - 05/17/14 07:27 PM Re: Minor Open Checking Account Banker Kathy
rlcarey Online
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Galveston, TX
An institution may deal with a minor with respect to a deposit account or safe-deposit agreement covered by subsections (a) or (b) of this section without the consent of a parent or guardian and with the same effect as though the minor were an adult.

So you are saying you don't let adults withdraw money from their accounts???
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#1924434 - 05/19/14 06:08 PM Re: Minor Open Checking Account rlcarey
Michelle III Offline
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no. I'm getting hung up on section a. Which states: (a) "An institution may receive deposits by or in the name of a minor"...

It doesn't address withdrawal rights; just deposits. I understand we must treat the minor as if they were an adult. That protects the bank from the parent coming back and saying the bank shouldn't have allowed the minor to deposit a check, etc. But does it protect the bank if the minor withdrawals all of the funds?

I think it's too vague to say yes or no. How is everyone else reading this? Do you allow minors to withdrawal from a joint account?

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#1924454 - 05/19/14 06:28 PM Re: Minor Open Checking Account Banker Kathy
Kathleen O. Blanchard Offline

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It also goes on to say that you can deal with that minor just as if they were an adult in handling the account.
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#1924468 - 05/19/14 06:38 PM Re: Minor Open Checking Account Michelle III
kw004h Offline
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Chicagoland, IL
Originally Posted By: Michelle III
"An institution may receive deposits by or in the name of a minor"...


I think you're overthinking it. You have to "recieve" the deposit to open the account. But, once the account is opened, it's handled the same way as you would any other account with adult owners.

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