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#2146465 - 09/18/17 04:38 PM Checking accounts for minors
MiMi Offline
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MiMi
Joined: Mar 2002
Posts: 365
How do other banks in Kentucky handle checking accounts for minors? I understand that a minor can't enter into a contract until they are 18; however, customers want to open DDA for their 16, 17 year olds and currently we do not. We have opened a joint account with parent and child. I realize it's the banks decision as to the amount of risk bank is willing to take, just looking for some quidelines/discussions, etc. Thanks

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#2146770 - 09/20/17 12:43 PM Checking accounts for minors MiMi
burkemi Offline
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Joined: Nov 2013
Posts: 549
We open the account if Mom and/or Dad is a joint owner. If the minor wants to change to an individual when (s)he is 18, we cross that bridge when we get there.
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#2148257 - 10/02/17 01:23 PM Re: Checking accounts for minors MiMi
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
While Kentucky law indicates that a contract with a minor for a bank account is enforceable, there aren't very many banks foolish enough to say, "Oh, terrific, we can sue a 12 year old! Let's open the account."

The simplest thing is to verify that your contract makes all parties to the account liable for an overdraft regardless of who wrote the check. (Contrary to popular belief the law does not say that.) If the contractual language is in place, require that any account on which a minor is a signatory have an adult (parent or otherwise) on the contract. If dad doesn't want to be responsible for the child's overdraft you gotta figure that he knows the kid better than you do and your bank is on notice that you do not want to open the account for this kid.

Just an observation: Children do not need checking accounts, debit cards, etc. Some banks make these offerings into the equivalent of a hobby and devote too much time to their administration.
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