Best Custodial Accounts for Kids Under 18

In the United States, minors under 18 generally cannot own bank or investment accounts in their own name. One rare exception is when a teenager has been legally emancipated from their parents, a situation that applies to only a very small number of underage individuals.

This restriction can be comforting for parents who worry that their children may not yet have the maturity or experience to manage money independently. However, it also creates challenges for parents who genuinely want to teach their kids smart money habits and help them gain real-world financialexperience before adulthood.

That’s where custodial accounts come in. Whether it’s a checking account, savings account, investment account, college savings plan, or prepaid debit card, custodial accounts strike a practical balance. They give children an opportunity to handle money in a controlled environment while allowing parents to oversee activity, guide decisions, and step in if something doesn’t seem right. This setup helps kids build financial confidence and understand essential money concepts—without sacrificing parental oversight.

Best Custodial Accounts for Kids

Custodial accounts play a key role in helping children learn how to manage money responsibly, yet they are far less common than standard accounts designed for adults.

Thanks to two federal regulations—the Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA)—parents can open and fund bank or investment accounts for their children without the need to create a formal trust, which can be both expensive and time-intensive.

Choosing the right custodial account for your child doesn’t have to be complicated. The best options are typically UGMA or UTMA accounts that come with minimal or zero maintenance fees, no charges for routine transactions (including investment trades, if applicable), and built-in tools that help children understand saving, spending, and investing.

Once the child reaches the legal age of adulthood, many of these custodial accounts can be transitioned into standard, noncustodial accounts, giving the beneficiary complete control over their funds—though conversion rules vary by provider.

Additionally, most custodial accounts are offered alongside regular adult accounts from the same institution. This allows parents to learn and manage finances alongside their children, making money education a shared and practical experience for the entire family.

1. Acorns

All-in-One Platform With Custodial Investing and Built-In Financial Education

Acorns is a well-rounded financial platform designed to support individuals and families at different stages of their financial journey. It combines banking, investing, and educational tools in a single ecosystem, making it easy to start small and grow over time.

The platform offers three affordable subscription plans, each catering to different needs. For families, Acorns Family is the most robust option, providing access to a complete suite of financial tools in one place. As your family grows and your financial goals evolve, Acorns can scale with you.

To open a custodial investment account for a child, you’ll need the Acorns Family plan, which costs $5 per month. This plan includes Acorns Early, Acorns custodial brokerage account for minors. One standout benefit is that multiple children can be added under the same subscription without any extra monthly charges.

Acorns Early accounts are structured under UGMA/UTMA rules, meaning the money can be used for any expense that benefits the child. Acorns also partners with child-friendly brands to help families grow savings faster, offering bonus investments on qualifying purchases through partners such as Disney+ and ABC Mouse.

Plans and Pricing

• Acorns Family – $5/month: Includes Acorns Early (custodial investing) plus a full range of bankingand investment tools for parents
• Acorns Personal – $3/month: Fewer account options and features
• Acorns Lite – $1/month: Basic investing functionality only

Account Types

• Acorns Early: Custodial investment accounts for children
• Acorns Invest: Taxable investment account for adults
• Acorns Later: Tax-advantaged retirement investment account
• Acorns Spend: No-fee checking account for adults

Features and Benefits

• Automatically invest spare change with the Round-Ups® feature
• Earn bonus investments through purchases made with 350+ Found Money® partners
• Receive up to 10% bonus investments on eligible purchases using the Acorns Spend account

2. Stockpile

Gift Cards That Let Kids Invest in Stocks and ETFs

Stockpileoffers a unique approach to custodial investing by combining a commission-free investment account with the ability to gift stock through prepaid gift cards. This makes it especially appealing for parents, relatives, and friends who want to introduce kids to investing in a simple and engaging way.

With Stockpile, minors can invest in over 4,000 stocks and exchange-traded funds (ETFs). Gift cards can be redeemed in amounts between $1 and $100, allowing access to well-known companies such as Apple, Disney, and Netflix without needing to purchase a full share.

Because Stockpile supports fractional share investing, even high-priced stocks and ETFs are within reach. This feature ensures that both gift-givers and young investors can participate regardless of share price.

If the recipient decides they’d rather invest in something different than the stock shown on the gift card, Stockpile makes that easy. Gift cards function like cash within the platform, meaning the funds can be applied to any eligible stock or ETF available—providing flexibility and eliminating the pressure of choosing the “perfect” investment.

Plans and Pricing

• No fee to open a custodial investment account

Account Types

• Custodial investment accounts for children under 18
• Taxable investment accounts for adults

Features and Benefits

• Buy fractional shares of 4,000+ stocks and ETFs
• Purchase and gift stock gift cards in denominations from $1 to $100
• Commission-free investing with flexible redemption options

3. Firstrade

Advanced Research Tools With Commission-Free Trading

Firstradeis a low-cost online brokerage designed for investors who want in-depth market access and professional-grade tools. The platform supports a wide range of securities, including stocks, ETFs, mutual funds, bonds, and options, making it suitable for hands-on investors.

One of Firstrade’s strengths is its extensive research and analysis suite. Investors have access to high-quality data, screening tools, and features not commonly found at basic brokerages, such as securities lending and trading outside regular market hours.

Parents with investing experience can open a Firstrade custodial brokerage account to introduce their children to the stock market early. These accounts have no contribution limits and allow minors to invest in stocks, ETFs, mutual funds, and bonds. While options trading isn’t permitted within custodial accounts, parents can demonstrate options strategies using their own accounts for educational purposes.

For families focused on education savings, Firstrade also offers Coverdell Education Savings Accounts (ESAs) for eligible households. These accounts provide tax advantages when funds are used for qualified education expenses, provided income requirements are met.

Plans and Pricing

• $0 account opening fees
• No commissions on stock, ETF, or options trades

Account Types

• Custodial investment accounts for minors
• Taxable brokerage accounts for adults
• Individual Retirement Accounts (IRAs)
• Coverdell Education Savings Accounts (ESAs) for minors
• Cash management accounts for adults and minors

Features and Benefits

• Access to Morningstar research reports
• Real-time streaming watchlists and advanced investment screeners
• Extended-hours trading during U.S. pre-market and after-market sessions

4. Greenlight

Smart Debit Card for Kids With Built-In Money Management and Investing Tools

Greenlighttakes a different approach to custodial accounts by focusing on a reloadable prepaid debit card designed specifically for kids, with robust parental controls built in. More than just a teaching tool, the Greenlight card is FDIC-insured and works as a practical spending solution for everyday use.

The platform includes a wide range of features that help children learn responsibility while giving parents full visibility and control, such as:

• Assigning household chores and tasks through the app, with customizable payments and rewards
• Automatically transferring allowances on a weekly or monthly schedule to up to five children
• Sending real-time alerts to parents whenever a card is used, whether online or in-store
• Allowing parents to set and adjust spending limits and rules as children mature
• Helping kids create and track personal goals for earning, saving, and spending

In addition to spending tools, Greenlight offers a kid-friendly investing feature for a slightly higher monthly fee. While the investment account is held in the parent’s name rather than as a traditional custodial brokerage, it provides an accessible way to introduce children to investing basics. All investment trades on the platform are commission-free.

Plans and Pricing

• Greenlight Base – $4.99/month: Prepaid debit cards with full parental controls for up to five kids
• Greenlight + Invest – $7.98/month: Includes a taxable investment account and an investing platform designed for kids
• Greenlight Max – $9.98/month: Adds cellphone insurance, identity theft protection, 1% cash back on eligible purchases, and up to 2% cash-back boosts on savings balances

Account Types

• Prepaid debit card with protected savings features
• Taxable investment account (via Greenlight + Invest)

Features and Benefits

• Real-time spending alerts and flexible parental controls
• Automated allowance and chore-based payments
• Priority customer support and purchase protection for eligible transactions (Greenlight Max)

5. EarlyBird

Robo-Advisor Custodial Accounts With Simple Gifting Options and a $10 Welcome Bonus

EarlyBirdis a robo-advisory platform built around a simple idea: gifting financialassets can be more meaningful than giving physical items. Instead of toys or gadgets, EarlyBird helps families and friends invest in a child’s future.

The platform allows parents, relatives, and friends to contribute money directly into a child’s custodial investment account. Gift-givers can also include a personalized video or message, making financial gifts feel more thoughtful and personal.

Once funds are added, EarlyBird automatically invests them using professionally designed portfolios tailored to the child’s time horizon and risk profile. These portfolios are built with low-cost exchange-traded funds (ETFs), helping to keep expenses low while maintaining diversification. Accounts are protected by SIPC insurance up to the legal limits, offering an added layer of security—though, like all market-based investments, returns are not guaranteed.

Plans and Pricing

• No fee on the first $200 invested per child
• $1 per month per child after the initial $200
• $2 processing fee for each gift contribution

Account Types

• Custodial investment accounts for minors

Features and Benefits

• Easy gifting for parents, relatives, friends, and educators
• Optional personalized video or text messages with each gift
• Automated, ETF-based investing managed by a robo-advisor

6. Copper

Teen-Focused Banking Account With Debit Card and Early Direct Deposit

Copperis a banking platform designed specifically for teenagers who are close to managing money independently. It includes a modern debit card and intuitive app features that give teens freedom while still allowing parents to maintain appropriate oversight.

Parents can set spending and withdrawal limits, but Copper’s overall design is geared toward teens who are nearly ready to handle their own finances. One standout feature is early direct deposit, which lets working teens receive their paychecks up to two days early—a valuable perk for those with part-time jobs.

Copper also makes it easy for teens to send and receive money with friends and family through built-in peer-to-peer payment tools. Its automatic savings feature encourages healthy financial habits by separating everyday spending money from funds set aside for future goals.

Plans and Pricing

• Free to open and fund a Copper account

Account Types

• Custodial debit card and teen banking account
• Built-in automatic savings feature (not a separate account)

Features and Benefits

• Early direct deposit from eligible employers
• Compatibility with Apple Pay and Google Pay
• Access to 50,000+ fee-free ATMs nationwide

7. Ally Bank

Comprehensive Online Bank Offering Flexible Custodial Account Options

Ally Bank is a well-established online financial institution known for its wide range of banking and investing products for both adults and children. In addition to traditional banking services, Ally offers a brokerage platform with commission-free self-directed trading and managed investment portfolios with no advisory fees.

While Ally doesn’t aggressively promote its custodial accounts in the same way as platforms focused specifically on kid’s financial education, it stands out for its flexibility. Nearly all Ally accounts can be opened in a custodial format, making it an excellent option for families who already use Ally for their everyday banking needs.

Plans and Pricing

• No monthly maintenance fees on bank accounts
• No commissions on self-directed investment trades

Account Types

• Custodial checking and savings accounts
• Certificates of Deposit (CDs)
• Money market accounts
• Custodial investment and brokerage accounts

Features and Benefits

• Commission-free trading and optional managed portfolios
• Access to a full-service online banking ecosystem
• 24/7 customer support available to all account holders, regardless of balance

8. Vanguard 529 College Savings Plan

Low-Cost, Tax-Advantaged Account for Education Savings

The Vanguard 529 College Savings Plan is a Nevada-based education savings plan that’s available to families across all 50 U.S. states. It’s designed to help parents and guardians build long-term savings for future education costs.

Unlike some state-sponsored 529 plans, this plan does not offer a state income tax deduction for residents, largely because Nevada does not levy a state income tax. However, it still delivers one of the most important advantages shared by all 529 plans: tax-free growth and tax-free withdrawals when funds are used for qualified education expenses.

Regardless of where you live or where your child attends school, qualifying withdrawals from the Vanguard 529 plan are not subject to federal or state income taxes. This makes it a powerful option for families focused on long-term education planning.

Beyond tax benefits, the Vanguard 529 plan stands out for its low investment costs and high lifetime contribution limits. True to Vanguard’s reputation, the plan is well-suited for parents who want to minimize fees while steadily growing an education fund over time.

Plans and Pricing

• No fee to open an account
• Investment expenses apply to all portfolios
• Target Enrollment portfolios: 0.14% expense ratio
• Other portfolio options: Expense ratios range from 0.12% to 0.42%

Account Types

• 529 college savings plan (tax-advantaged investment account for qualified education expenses)

Features and Benefits

• Tax-free investment growth and withdrawals for eligible education costs
• High lifetime contribution limits
• Ability to contribute up to $75,000 per year per individual without triggering federal gift tax (using the 5-year gift tax election)

9. Stash

All-in-One Financial Platform With Custodial Investment Accounts for Kids

Stashis a versatile financial platform designed to help families build money skills and invest wisely. Its premium plan, Stash+, includes custodial investment accounts, known as Kids Portfolios, which allow children to explore the stock market while parents maintain oversight and control.

Beyond investing, Stash provides additional perks that families may find valuable. For example, all Stash users receive life insurance coverage, with Stash+ members eligible for up to $10,000 in coverage through Avibra.

Plans and Pricing

• Stash+ – $9/month: Includes Kids Portfolios with premium research and guidance, plus a suite of other financial tools
• Stash Growth – $3/month: Offers a smaller selection of accounts and features

Account Types

• Custodial investment accounts for minors
• Taxable investment accounts for adults
• Bank accounts for adults
• Stash Stock-Back® Card: Debit card with stock rewards

Features and Benefits

• Custodial accounts give kids hands-on investing experience under parental supervision
• Premium research and advice tools for Stash+ users
• Life insurance coverage: minimum $1,000 for all users; $10,000 for Stash+ members

10. Charles Schwab

Full-Service Brokerage With Commission-Free Trading and Custodial Accounts

Charles Schwab is a well-established online brokerage that offers a full range of investment products and was one of the first major firms to provide commission-free trading for stocks and ETFs. Its custodial accounts allow parents to help their children build personalized investment portfolios without paying unnecessary fees.

Even if your child is starting with a small amount of money, Schwab makes it easy to enter the market. Its fractional share investing feature, known as Schwab Stock Slices, allows purchases in increments as low as $5, making investing accessible to beginners.

Plans and Pricing

• No cost to open or fund an account
• Commission-free trading for stocks and ETFs
• Other securities may incur standard trading fees

Account Types

• Custodial investment accounts for minors
• Taxable brokerage accounts for adults
• Retirement accounts (IRAs) for adults
• Cash management accounts for adults and kids

Features and Benefits

• Fractional share investing through Schwab Stock Slices
• Access to a wide range of investment products, including no-transaction-fee mutual funds
• Build diversified portfolios with minimal fees

Harness Custodial Accounts to Boost Your Child's Financial Literacy

Custodial accounts are a powerful tool for helping children develop financial literacy while giving parents peace of mind. From investment-focused platforms like Acorns, Firstrade, and Charles Schwab to teen-friendly banking solutions like Greenlight and Copper, there’s a custodial account to fit nearly every family’s goals and comfort level.

By starting early, parents can teach kids essential money skills such as saving, budgeting, and investing, all in a controlled environment. Many custodial accounts also allow gifts from relatives and friends, making financial learning a collaborative and rewarding experience.

When choosing a custodial account, consider factors such as fees, account types, investment options, and parental controls. Ultimately, the right account can set your child on a path toward financial responsibility and independence, helping them gain confidence and practical experience that will last a lifetime.