Laws on What a Minor Can Withdraw From a Savings Account for a Minor in Ohio
Most states don't allow children to open their own savings accounts because they are too young to sign legal contracts and don't have assets to back up the account. Ohio, however, allows children to open such an account. Children's savings accounts are largely a matter of bank policy, as banks have discretion to determine withdrawal limits and other issues related to savings accounts.
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No Difference
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Ohio doesn't have special laws for minor bank accounts. If a bank chooses to open an account for a minor, the bank must treat the minor's account the same way it does accounts for people of legal age. Thus, minors are subject to the same withdrawal limits on their bank accounts as people of legal age are subject to on their bank accounts.
Bank's Discretion
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Ohio banks don't have to open savings accounts for minors if they don't want to. Banks may choose not to do so because most minors don't have enough assets to secure the account. However, banks are more likely to open savings accounts for minors than checking accounts because minors can't write checks on and overdraw from savings account. If a bank doesn't want to open a savings account for a minor, it may choose to allow a parent to open a joint account with the minor.
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Parents' Power
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Ohio banks may require parents to approve all withdrawals from a minor's bank account. As with other policies regarding children's bank accounts, this rule is left up to the bank's discretion rather than being a matter of state law. Some banks require the parent to make withdrawals on the minor's behalf or to visit the bank with the minor to make withdrawals.
Considerations
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Ohio is one of a very few states that allows minors to open savings accounts. Parents should consider their children's best interest before allowing them to open savings accounts. Depending on the child's personality and needs, a parent may choose to open a joint account with the child rather than allowing the child to open his own account. Parents may also want to open an education savings account for their children; this type of savings account allows parents or children to withdraw money only to pay for higher education.
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