Overview of Minor Accounts at Charles Schwab
Key Points
• For
most Schwab account types, the minimum age to open an account is
18.
• Schwab does offer several accounts for minors, and these can provide a way around the usual age requirement.
• For youth accounts at Schwab, an adult parent, guardian, custodian, or responsible individual is needed, depending on the account type.
What Is the Minimum Age to Open a Schwab Account?
For most standard financial accounts at Charles Schwab, the minimum age is 18. This generally applies to
both bank and investing accounts. There are some youth-focused account types, however, where a minor can have an account with help from an adult.
In all cases, other requirements must be met as well. For example, Schwab generally asks for identifying information for both the minor and the adult on U.S.-based youth accounts. There can be exceptions, though. Schwab also has an international-account service for non-U.S. residents, and the minimum age on those accounts is typically 18.
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Getting Around Schwab's Age Requirement
The main way to get around the usual age requirement at Schwab is to open an account made for minors. With custodial-style accounts, an adult and a legal minor are both connected to the account. The assets belong to the minor, although the adult stays responsible for the account until the minor reaches the age of majority, which varies by state.
Schwab offers several youth-oriented investing accounts. Four of them follow this custodial-style setup, and Schwab also offers the
Teen Investor account for ages
13 to 17, which is structured differently as a joint brokerage account with a parent or guardian. We will look at the four custodial-style investing accounts now.
529 Plan
The first youth account we're going to look at is the 529. Schwab's 529 is a Kansas plan and is administered by the Kansas State Treasurer. In a standard 529, the account owner keeps control of the assets, and the beneficiary can be a child or even an adult. If custodial UGMA/UTMA assets are moved into a 529, the minor beneficiary becomes the account owner and takes control at the age of majority. Qualified withdrawals are tax free at the federal level.
At account opening, the beneficiary can be any age. Schwab's materials say the beneficiary can be a U.S. citizen or resident alien. An infant could be the beneficiary of a 529.
Custodial IRA
Next up is the Custodial IRA. Like the 529, this one is established for a minor by an adult custodian. Unlike the 529, the minor has to have earned income. Otherwise, no contributions can be made. Another difference between the 529 and the Minor IRA is that money in the IRA is not limited to education, although normal IRA tax rules and possible penalties can apply to withdrawals.
Custodial Account
Another juvenile account available through Schwab is the custodial (non-IRA) account. It can be opened in either UTMA or UGMA format, depending on the state of residence. The advantage of either custodial account is the lack of any contribution limit. Both custodial accounts have no contribution limits, although gift taxes may apply above certain thresholds.
Once the minor reaches adulthood, the assets in the account belong to the beneficiary, and the custodial account must be retitled into the beneficiary's own brokerage account. Before or after conversion, funds in the account can be used for any purpose.
Coverdell Account
Parents who want more control over what their children can purchase using their brokerage assets could opt for a Coverdell Education Savings Account. Withdrawals from a Coverdell account must be used for qualified education expenses to receive tax-free treatment. This account is available at Schwab.
How to Open a Minor Account at Schwab
Thanks to Schwab's user-friendly software, opening a juvenile account is straightforward.
On the website, look for the orange button at the top to open an account. Scroll down to find the link for the list of all accounts (minor accounts won't initially be displayed). On the next page, click on the tile for Education & Custodial. Now you'll see the list of 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 appropriate link will be displayed. Details on both 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 library of educational material that can be especially helpful for beginners. Some of these resources require no login.
Pricing on Juvenile Accounts
Most of the youth accounts available at Schwab have no account minimums and no recurring account-maintenance fees. Many trades will have zero commissions, and those that do tend to be on the small side in most cases. Investment expenses and, in the case of the 529 plan, annual asset-based fees can still apply.
Updated on 4/14/2026.
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