I am fourteen years old and would like to open a retirement account. How do I go about doing so? What information do I need?
Laws differ from state to state as to whether a minor can own an account under just his/her name. Even when state laws allow it, a bank may or may not allow it. The types of accounts they'll open and for whom, is their choice.
Our suggestion is to call a bank where you currently have an account, where your family currently banks, or just look in the telephone book or on the web for your local banks. First, you'll ask if they'll open an account in just your name, or your name and your parent or guardian. Then you want to ask about minimum balances and interest rates. Depending on what you have to start with, you may be able to look for an Individual Retirement Account, a regular savings account, or a Certificate of Deposit. It is important that you realize that if you deposit in the IRA or CD, your money will be committed and tied up for a long period. To access your money, you could face substantial penalties. If you think you may want your money for some expense, you definitely want a regular savings account where you'll earn interest, but have immediate access to your money. You will earn a slightly lower rate if interest for this access, but likely less than if you had an early withdrawal penalty.
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Laws differ from state to state as to whether a minor can own an account under just his/her name. Even when state laws allow it, a bank may or may not allow it. The types of accounts they'll open and for whom, is their choice. 