Can your child open a bank account in their own name?
Your child worked as a shop assistant for a month during the summer holidays and has earned a decent salary. Can he or she open a bank account in their own name and have the salary deposited into it? The answer is yes.
In principle, minors are legally incapacitated. This means that although they have the same rights as adults, they cannot exercise these rights independently. A minor must therefore be represented by their legal guardian or be assisted in performing legal acts. Opening a bank account and receiving a salary are considered legal acts, so, in theory, a minor should be represented.
However, there are several exceptions to the principle of legal incapacity. In certain cases, a minor can act independently, without a representative. These exceptions are either established by law or have developed through banking practice.
Opening a bank account
A distinction must be made between a savings account and a current (or checking) account. In both cases, however, a minor can open a bank account independently and in their own name.
Article 2 of the Act on Banking Transactions by Minors (Act of 30 April 1958 concerning the legal capacity of minors for certain savings transactions, published in the Belgian Official Gazette on 10 May 1958) explicitly states that a minor is entitled to open a savings account without the intervention or consent of their legal representative.
There is no minimum age required to open a savings account. However, at the time of opening, the minor must have sufficient capacity of discernment. This is in line with the general legal principle that contracts are only valid if all parties act with full understanding of the consequences.
The bank is not obliged to inform the parents of the opening of the savings account. However, the parents do have the right to request information.
As for the opening of a current (or checking) account by a minor, the law does not provide any specific rules. Therefore, the general principle applies: the minor is legally incapacitated and must be assisted by their legal representative in order to open a current account.
In practice, however, most banks allow minors from the age of twelve to open a current account on their own, without the explicit consent of their parents. Nevertheless, parents retain the right to obtain information about the account and may even object to its opening. For this reason, some banks request prior authorization from the parents.
Receiving salary or other funds in one’s own name
The term “receiving” refers to funds being deposited into a savings or current account opened by the minor, without the involvement of a legal representative. This concerns the actual receipt of funds, but not yet the independent control or use of those funds (see further in this Fact).
If a minor is allowed to open a savings and/or current account independently, it is logically assumed that they can also independently receive funds and entrust them to their bank or savings institution. This concerns funds that are considered removed from the parental administration of the minor’s assets.
As a rule, all property—both income and other capital—belonging to the minor, including earnings from employment, falls under the general legal provisions governing the administration of a minor’s assets. So, what can the minor receive independently? This might include gifts (e.g., savings deposited by parents, though this is subject to debate), pocket money, or wages.
There is a specific legal provision regarding wages. An employer may legally pay the minor directly, unless the legal representative objects (Article 44 of the Employment Contracts Act). However, the payment of wages to a minor does not automatically mean that the minor may freely dispose of these funds (see further).
Additionally, a specific rule applies to minors under the age of fifteen or those who are still subject to full-time compulsory education. The wages of these minors must be deposited into an individualized savings account with a financial institution in the child’s name. The interest must be capitalized. Only the account holder may access the funds—legal representatives are not permitted to do so (Article 7.13 of the Employment Act of 16 March 1971).
Withdrawal of funds from a bank account by a minor
When it comes to the withdrawal of funds by a minor, a distinction must be made between funds held in a savings account and those in a current (checking) account.
- Withdrawal of funds from a minor’s savings account
From the age of sixteen, minors may withdraw up to EUR 125.00 per month from a savings account they have opened themselves, without parental consent (Article 2, third paragraph of the Act on Banking Transactions by Minors). However, parents may object to such withdrawals. If the minor wishes to withdraw more than EUR 125.00 per month, they must obtain prior consent from their legal representative (usually the parents) (Article 2, third paragraph of the Act on Banking Transactions by Minors).
For minors under the age of sixteen, the general rule is that they are not allowed to withdraw funds from their savings account themselves. They must be represented by their legal representative, who may withdraw funds from the account without requiring prior judicial authorization.
As stated earlier, wages earned by minors younger than fifteen or still subject to full-time compulsory education must be deposited into an individualized savings account that is inaccessible to the legal representative. Only the child may access the funds on this account, but not before the age of sixteen, and even then the withdrawal is limited in accordance with Article 2 of the Act on Banking Transactions by Minors.
Judicial authorization from the justice of the peace is only required when parents, acting as legal representatives, wish to access funds placed in a blocked or unavailable account in the name of the minor—whether this restriction is based on a court decision or established by law (e.g. funds from an inheritance).
- Withdrawal of funds from a minor’s current account
There is no specific legal provision regarding a minor’s current (checking) account. This means that the legal representative (usually the parents) determines the extent to which the minor may independently access and manage the account. A minor’s salary can therefore be validly deposited into their current account, but the minor may only access those funds with parental consent.
It is important to emphasize that the legal representative remains legally responsible for the management of the minor’s assets. From a legal-technical perspective, the minor acts as an agent (or proxy) of the legal representative. This means that, although the minor may operate the current account with permission, the ultimate responsibility and liability rest with the legal representative.
The associated risks remain limited, provided that the rules governing account management are carefully observed.