Overview of Minor Accounts at Charles Schwab
Key Points
• The minimum age at Schwab to open most account types is 18.
• Schwab does have a few accounts for minors, which make it possible to get around the standard age requirement.
• All accounts for minors at Schwab must have an adult guardian.
What Is the Minimum Age to Open a Schwab Account?
The normal age to open an account at Charles Schwab is 18. This applies to both banking and investing accounts. Some special account types let a minor open an account with the help of an adult guardian.
In every case, other rules must be met. For example, Schwab requires U.S. residential addresses and Social Security Numbers for both minors and guardians. There can be exceptions. Schwab’s international account service lets non-U.S. residents open accounts, but the minimum age is usually 18.
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Getting Around Schwab's Age Requirement
The way to bypass the age rule at Schwab is to open an account made for minors. These accounts include both an adult guardian and a legal minor. The money belongs to the minor, but the guardian manages the account until the minor reaches adulthood, which depends on state law.
Schwab has four investing accounts set up this way. Schwab Bank does not offer these account types for minors. Let’s look at the four investing accounts.
529 Plan
The first account for minors is the 529. Schwab’s 529 is a Kansas plan run by American Century Investment Management, Inc. Like other minor accounts, it is opened by a guardian for a child. When the child becomes an adult, the account belongs to them, and qualified withdrawals for education are tax free at the federal level. The legal age of adulthood depends on the state.
At opening, the minor can be any age as long as they have a Social Security Number and a U.S. address. Even a newborn can be the beneficiary of a 529.
Custodial IRA
Another option is the Custodial IRA. Like the 529, it is opened for a minor by a guardian. Unlike the 529, the minor must have earned income or no contributions can be made. Funds in a Custodial IRA can be used for any purpose, while 529 funds must go toward education if you want the tax benefits.
Custodial Account
Schwab also offers custodial (non-IRA) accounts for minors. These accounts can be opened as either UTMA or UGMA depending on the state. The main benefit is that there are no contribution limits, though large gifts may face gift taxes.
When the minor becomes an adult, the assets transfer to them, and the account becomes a regular taxable brokerage account. Money in the account can be used for any purpose before or after this change.
Coverdell Account
Parents who want more control over how money is used can choose a Coverdell Education Savings Account. Withdrawals are only allowed for approved education costs. Schwab offers this account type.
How to Open a Minor Account at Schwab
With Schwab’s simple online tools, opening an account for a minor is quick.
On the website, look for the orange button at the top to start. Scroll down to the full account list (minor accounts aren’t shown right away). On the next page, click Education & Custodial. This shows the non-retirement accounts. The Custodial IRA is listed under Retirement.
Some accounts can be opened online, while others require filling out a pdf form. In both cases, information about the guardian and the minor must be provided.
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Education for Youngsters
Under the Learn tab on Schwab’s website, there is a large set of resources that beginners may find useful. Some of these don’t require logging in.
Pricing on Juvenile Accounts
Schwab’s minor accounts don’t have deposit minimums or ongoing fees. Many trades cost nothing, and those that do usually have small charges.
Updated on 12/2/2025.
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