Many prudent parents are thinking about opening a deposit in the name of their own child, who has not yet turned eighteen years old. Such operations have gained popularity since the existence of the USSR. Every person born in the Soviet Union remembers savings books that were issued by caring mothers and fathers, grandparents.
As a rule, accounts were opened in the name of the child. This option of protecting the child from any financial problems in the future is still popular. The contribution allows you to provide a child who has not yet reached adulthood with a successful start in life. In this article you can learn how to open a bank account in the name of a minor.
At what age can you open a bank account?
This question will be answered by the current legislation, which divides all citizens into three categories, each of which has its own rights:
- Children under 14 years old. They cannot use financial products on their own. But their representatives can open accounts and deposits in their name, which generally happens quite often.
- Minors 14-18 years old. According to the law, these are still children, but their rights in terms of banking services are expanding. They can open an account on their own, but there is an important condition - closing a deposit is possible only with the permission of a legal representative. And to open an account, the bank may also require this consent. So, there is a possibility, but with some restrictions (we’ll look at how to get around them below).
- Adult citizens. As soon as a person turns 18, he opens accounts and makes any transactions with them.
That is, according to the law, citizens can open bank accounts registered in their name from the age of 14. But some banks still work with people over 18 years of age, as specified in the terms of service. Therefore, if you are 14-18 years old, when looking for a bank, call their hotlines and clarify the information.
How profitable are children's deposits - expert opinion
In Russia there are not many ways to provide reliable financial protection for children upon reaching adulthood. Existing tools today, according to financial consultant FCP (Financial Management Ltd) Isaac Becker, are not as flexible as in other countries and do not cope with the task.
According to specialist observations, many people are financially illiterate and do not trust banks.
President Nina Kozlova does not predict anything good, quite the opposite - rates could drop to 6.0% and even special promotions will not save the situation.
I would also like to go back to 1992 - the time when all citizens’ investments became worthless. Although the state tried to compensate for the payments, the compensation was so small that depositors began to seek protection of their interests in the escrow court in 1993.
As judicial practice shows, most of the claims were related to children's deposits at a high rate - 190% per annum (it's a shame to compare with today's rates - 7.5%). Almost 25 years have passed since then, but even today many citizens are fighting with Sberbank in the hope of protecting their rights.
A short video about banking products for children:
Opening accounts for children under 14 years of age
Usually we are talking about deposits. Parents or other close people thus contribute to the future of the minor. They open a special account and deposit funds into it one-time or regularly. The most common choice is savings deposit programs. Accounts can be replenished regularly, increasing the deposited amount and, ultimately, profit.
To close a child's deposit and withdraw funds from it, permission from the guardianship authorities is usually required.
Many banks offer children's deposits, but most often people choose Sberbank for this purpose. This is understandable: the bank is reliable, and an account of this type is opened for many years. Sber may not offer the most favorable rates, but it is stable.
What Sberbank offers in terms of opening a deposit in the name of a child:
- can be opened in foreign currency or rubles. The minimum amount is from 1000 rubles or 100 dollars;
- up to the age of 18, a child can withdraw funds from the deposit only with the permission of the guardianship authorities;
- not only parents, but also other people at will can replenish the deposit;
- the contract is concluded for a period of up to 3 years with the possibility of regular extension;
- Once the child reaches 14 years of age, he will be able to independently replenish the account, as well as withdraw interest from it. At 18 he will have full access to the account;
- opening is carried out only in the office, you can top up through Sberbank Online.
- The account will not be reflected in the parent’s online bank, but if a child, upon reaching 14 years of age, opens a Youth Card and connects to banking, he will see his contribution.
Approximately similar conditions apply in other banks offering this service. To open an account, the parent provides his/her passport and the child’s birth certificate/passport.
Children's deposits - a bright future for a child or parents' money thrown away?
Many loving parents and grandparents have not even heard of it: such investments are not very popular in Russia and are unlikely to be in demand in the near future.
There are several reasons:
- Low rates. For example, Sberbank pays only 3.7–3.8% per annum, provided that the deposit is opened for three years from 1,000 rubles. If you make an investment for 10 years or more, due to inflation there will be nothing left of it.
- The population has lost confidence in banks and is not ready to make long-term investments. They are not even attracted to investment insurance.
- Due to financial instability, banks are not ready to offer consumers long-term products.
The advantage of children's savings deposits is the possibility of early withdrawal and flexibility. When choosing deposits, it is better to give preference to a product for a period of 1 year with automatic renewal. This will allow you to use the money when needed and save interest.
Open an account for a child 14-18 years old
The law explains at what age you can open a bank account; this action is permissible when a citizen reaches 14 years of age. If the account is needed to receive a scholarship or salary, there are no difficulties; parents are not needed to conclude an agreement. If this is a regular account, their consent to open will be required. In this case, the minor and his representative go to the office of the bank of interest with identification documents.
Some banks allow people 14-18 years old to open an account without the consent of representatives. For example, even Sberbank is talking about this possibility.
The child himself can manage the proceeds: prizes for Olympiads and any victories in competitions, any financial assistance, salary, scholarship, income from third parties. In this case, the parent has every right to request an account statement.
Youth cards
We figured out how old you can be to open an account with Sberbank and other Russian banks. But now minors can open not only accounts, but also bank cards. And they can definitely order them without parents, so this is an excellent alternative to an invoice and an opportunity to get away from restrictions.
If you are over 14 years old and have a passport, you can go to the bank and get a simple debit card. Parental consent is definitely not required, but the plastic is standard and you can make any financial transactions with it:
- pay in regular stores;
- pay online wherever card payments are accepted;
- use online banking and make any payment transactions there;
- withdraw funds from ATMs, top up your card account.
Such cards are serviced by international payment systems, so they can be used throughout the country and around the world. They are practically no different from “adult” products, the only difference may be in the restrictions on cash out limits.
Youth cards are issued only in classic versions. It is noteworthy that the price of their service is usually less than standard ones. This is due to the fact that young people will still not actively use the card on a par with their parents.
Opinion and reflections
The main advantage of a child's deposit is the inability to easily withdraw funds, which many mistakenly consider to be a disadvantage. If you want to open a deposit into which you will periodically “get in”, then no one is stopping you from opening regular deposits, or, even easier, using bank cards with interest accrued on the balance.
It is precisely for the safety of money in the account and protecting it from “accidental” spending that this proposal from Sberbank was developed. For some reason, the bank’s official website does not provide sufficient arguments in favor of opening children’s deposits, but this does not prevent far-sighted parents from using this service.
Which banks issue cards from 14 years of age?
Of course, most citizens, having received a passport, go for a Sberbank Youth Card. This product is available to citizens 14-25 years old and is issued without the presence of parents. You can place your order online, and after receiving an SMS about delivery, come to the office with your passport to pick it up. Maintenance costs only 15 rubles per year.
Youth SberCard from Sberbank
| Cost from | 480R |
| Cashback | THANK YOU |
| % on balance | No |
| Withdrawal without % | RUB 500,000/month |
| Overdraft | No |
| Delivery | To the department |
Many young people order a Qiwi debit card; it has also been issued for years. The issue costs 300 rubles, after which there is no service fee. To order, you need to register on the Qiwi website and provide your passport details. After payment for the issue, the card arrives to the holder by mail approximately 7-14 days later.
Alfa-Bank issues children's cards for children of any age. But if the child is under 14 years old, the plastic is tied to the parent. Older children can apply for personal cards by providing a passport. Alfa-Bank services such payment instruments free of charge.
Russian Standard issues a special “Card for teenagers” aged 14-17. But he notes that in order to issue it, a citizen must provide certified parental consent, which can be issued right there at the bank. It is noteworthy that you can choose a stylish plastic design, and you can also connect a deposit to the card.
In general, it is much easier for teenagers to open bank cards, and they are more convenient in terms of functionality; money will always be at hand. The accounts are of more interest to parents who want to open a deposit for their child.
about the author
Irina Rusanova - higher education at the International East European University in the direction of "Banking". Graduated with honors from the Russian Economic Institute named after G.V. Plekhanov with a major in Finance and Credit. Ten years of experience in leading Russian banks: Alfa-Bank, Renaissance Credit, Home Credit Bank, Delta Credit, ATB, Svyaznoy (closed). He is an analyst and expert of the Brobank service on banking and financial stability. [email protected]
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Comments: 8
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Author of the article Irina Rusanova
Consultant, author Popovich Anna
Financial author Olga Pikhotskaya
- Evgeniya
09.30.2021 at 22:53 Remove the article or correct it.
Terrible ignorance. How can you trust the author if he writes “from how old,” where this madam studied. I won’t say anything about the avatar - it’s creepy! Reply ↓ - Gregory
06.26.2021 at 00:47It turns out that if I open a deposit for my daughter, she is 16 years old, for 1 year, then after a year I will be able to take the money only with the permission of the guardianship authorities?
Reply ↓
Anna Popovich
06.28.2021 at 16:32Dear Gregory, yes, if the depositor’s age is from 14 to 18 years, then he can obtain permission from the guardianship authorities and withdraw part of the accumulated funds.
Reply ↓
04/23/2021 at 22:25
How many years old is a scrooge account opened in a bank for a child?
Reply ↓
- Anna Popovich
04/25/2021 at 00:35
Dear Galina, from the age of 14 you can open an account in the name of a child.
Reply ↓
01/26/2021 at 16:11
Hello, everything seems clear, but I still have one small question. From 14 to 18 years old. Can the owner of the deposit independently manage the deposit on the day of majority? Or 2, 3 days, a week after 18 years, it’s not entirely clear
Reply ↓
- Anna Popovich
01/26/2021 at 16:50
Dear Maxim, upon reaching the 18th birthday, the client has the right to dispose of the deposit - that is, directly from birth.
Reply ↓
12/24/2020 at 11:02 pm
The article discusses the issues of opening a bank account or obtaining a card, but does not at all consider the issue of opening a fixed-term bank deposit by a person aged 14-18 years. Still, a deposit and just a current account are not exactly the same thing, although when you open a deposit, a bank account certainly opens. It would be nice to supplement the article with this information, what are the nuances when opening and closing a time deposit, whether parental permission is needed to open and close, etc.
Reply ↓
Providing compensation
The agreement is opened for a significant account and there is a possibility that the bank will go bankrupt. Therefore, you need to choose a lender with a long history.
If a financial institution’s license has been revoked, you can receive compensation in a special manner in the amount of up to 1,400,000 rubles. The refund applicant will be the parent, not the child.
If the contribution exceeds the established amount, then the person participates in bankruptcy proceedings on a general basis.
