Overview of Minor Accounts at Charles Schwab
Key Points
• For most Schwab account types, the minimum age to open an account is 18.
• Schwab offers several accounts designed for minors, which can provide a way around the usual adult age requirement.
• Minor-focused Schwab accounts generally require an adult parent, guardian, or custodian.
What Is the Minimum Age to Open a Schwab Account?
The standard age requirement to open a financial account at Charles Schwab is 18. This applies to
both banking and investing accounts. However, Schwab does offer some specialized account types that allow a minor to invest or save with help from an adult.
Other eligibility rules must be satisfied as well. For example, Schwab generally requires Social Security Numbers and U.S. residency details for minor-account applications. There can be exceptions to some rules, though. Schwab also has an international-account service for non-U.S. residents. The minimum age for those accounts is typically 18.
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Getting Around Schwab's Age Requirement
The main way to avoid Schwab’s standard age requirement is to use an account structure meant for minors. With these accounts, an adult is involved in opening or managing the account, and the minor is connected to the assets in a way that depends on the specific account type. For custodial accounts, the assets belong to the minor, while the adult manages the account until the minor reaches the applicable age under state law.
Schwab offers several account options for young investors and education savings, including custodial accounts, custodial IRAs,
education accounts, 529 plans, and the Schwab Teen Investor account. Schwab Bank accounts generally do not have the same juvenile-account structure. We will review these
investing and education accounts below.
529 Plan
The first minor-related account we’ll cover is the 529 plan. The Schwab 529 Education Savings Plan is
managed by TIAA-CREF Tuition Financing, Inc. This account is opened by an account owner, often a parent or another adult, for a beneficiary. Withdrawals can be tax-free at the federal level when the money is used for qualified education expenses.
A 529 beneficiary can be a child of any age, including an infant. The account owner keeps control of the account and can use the money for the beneficiary’s qualified education expenses, subject to the plan’s rules.
Custodial IRA
Next is the Custodial IRA. Like other minor accounts, this account is set up for a child by an adult custodian. Unlike a 529 plan, the minor must have earned income in order for contributions to be made. Another difference between the 529 and the Custodial IRA is that IRA funds are not limited to education expenses, although tax rules and possible penalties can apply to early withdrawals.
Custodial Account
Another minor account available through Schwab is the custodial brokerage account. It can be
opened in either UTMA or UGMA format, depending on the governing state. One benefit of this type of
custodial account is that it does not have a formal contribution limit, although gift-tax rules may apply.
Once the minor reaches the age at which the custodianship ends under state law, the assets belong to the former minor, and the custodial account must be converted into a standard taxable brokerage account. Before or after conversion, the funds can generally be used for the benefit of the minor or former minor.
Coverdell Account
Parents who want education-focused tax benefits and more control over how the funds are used may consider a Coverdell Education Savings Account. Withdrawals from a Coverdell account can generally be tax-free when used for qualified education expenses. This account is available at Schwab.
Schwab Teen Investor Account
Schwab now provides another minor-account choice: the Schwab Teen Investor account. This is a taxable joint brokerage account for a teen between the ages of 13 and 17 and one parent or legal guardian. Unlike a traditional custodial account, the teen can sign in, see the account, place trades, and take part in managing the money. The adult on the account continues to have full visibility and authority.
The parent or guardian must begin the application. After the adult enters the required information, the teen completes part of the process by creating login credentials and reviewing the details before the application is submitted. Each Schwab Teen Investor account is limited to one adult and one teen, so families with more than one eligible teen need separate accounts.
Both the adult and the teen must be U.S. residents. Schwab says eligibility includes residents of the 50 states, Puerto Rico, and the U.S. Virgin Islands. Standard personal information is required for both people, including Social Security Number, contact details, and employment status. To verify the teen’s identity, the parent or guardian may need to upload a document such as the teen’s birth certificate, driver’s license, state ID, or passport.
The account has no minimum balance requirement to open and no minimum trade requirement. Available investments include most U.S. equities, ETFs, mutual funds, fixed-income products, fractional shares, and Schwab Investing Themes. The account does not permit direct individual cryptocurrency trading, although some cryptocurrency-related exchange-traded products may be available.
A debit card can also be requested for the teen with parent or guardian approval. Schwab requires at least $100 in funding before the debit card is issued. Because there is no margin feature on the Teen Investor account, debit card use is limited to available cash in the account.
When the teen reaches 18, the assets can be moved to an individual brokerage account opened by the teen. If preferred, the parent or guardian and teen can continue using the Teen Investor account until the teen reaches 21. At age 21, the account becomes restricted until the former teen completes Schwab’s new account terms and conditions.
How to Open a Minor Account at Schwab
Schwab’s website makes it fairly simple to begin opening a minor account.
On the website, look for the orange button at the top to open an account. Scroll down to find the link for the full list of accounts, since minor-focused accounts may not appear right away. On the next page, click the tile for Education & Custodial. You will then see the non-retirement accounts discussed above. The Custodial IRA is listed under the Retirement section.
Some accounts can be opened online, while others require a pdf form. In either case, the proper link will be shown. Information for both the adult and the minor must be supplied.
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Education for Young Investors
Under the Learn tab on Schwab’s website, there is a large collection of educational materials that can be useful for beginners. Some of these resources are available without logging in.
Pricing on Juvenile Accounts
The minor accounts available at Schwab generally have no opening deposit requirements and no recurring maintenance fees. Many online stock and ETF trades have zero commissions, although some trades and account activities may still have fees.
Updated on 6/16/2026.
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