Understand the Bank Card Restrictions for Minors in the United States and the Relevant Remittance Regulations

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In the US, minors (typically under 18) cannot open bank accounts independently. You must open a joint account with the child as the guardian for them to obtain their own bank card.

Key Points: These minor accounts differ from regular adult accounts. They have special US minor bank card restrictions on spending, transfers, and receiving remittances.

Key Points

• Minors cannot open bank accounts in the US by themselves; a guardian must open a joint account with the child.
• Minor bank cards have spending limits and cannot independently initiate wire transfers or overdrafts; parents can manage and monitor the child’s account via mobile apps.
• When remitting from China to the US to a minor’s account, the recipient should be listed as the guardian and must comply with China’s annual $50,000 foreign exchange limit.
• Gifts exceeding $100,000 received from abroad need to be reported to the US Internal Revenue Service, but this is usually just for disclosure and does not mean taxes are due.

Main Types of US Minor Account Opening

Choosing the right account type for your child is the first step. Major US banks offer various options, each with different ownership structures and features. Regardless of the type, you must authorize as the guardian and provide identification for both you and the child (such as passport, visa) along with a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Custodial Accounts (UTMA/UGMA)

UTMA (Uniform Transfers to Minors Act) and UGMA (Uniform Gifts to Minors Act) accounts are a way to hold assets for minors. You manage the account as the custodian, but the assets legally belong to the child. When the child reaches the legal age of majority (typically 18 or 21, depending on the state), full control of the account automatically transfers to them.

Tax Reminder: Kiddie Tax Rules Income from these accounts is taxable. Under the “Kiddie Tax” rules, for 2024:

• The child’s first $1,300 of investment income is tax-free.
• The next $1,300 is taxed at the child’s rate.
• Amounts over $2,600 are taxed at the parents’ rate.

Joint Accounts

This is a more direct approach where you and the child co-own a bank account. Unlike custodial accounts, joint accounts mean both you and the child have equal access to the funds. This type is ideal for teaching children daily saving and spending habits, as they can participate more directly in account management. Parents can set alerts and limits via the bank’s app for effective supervision.

Teen-Specific Cards and Student Accounts

Many major banks offer checking accounts designed specifically for teens and students. These are essentially joint accounts with parental monitoring features, aimed at helping young people learn financial management.

• Chase Bank offers Chase High School Checking (ages 13–17), requiring a parent to have a linked Chase account.
• Bank of America provides fee-free Advantage Banking accounts for students under 25.

The biggest advantage of these accounts is that they usually waive monthly maintenance fees and include targeted US minor bank card restriction features, such as spending limits and merchant category restrictions, helping you guide your child’s spending behavior.

Detailed Explanation: US Minor Bank Card Restrictions

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After obtaining a bank card for your child, you need to understand the special rules attached to these accounts. To protect minors and grant you supervisory rights as a guardian, banks impose multiple US minor bank card restrictions. These mainly cover spending limits, account functions, and parental controls.

Spending and Cash Withdrawal Limits

Minor account bank cards typically have strict daily spending and ATM withdrawal limits. These are much lower than adult accounts to prevent overspending or large fund risks. These limits are preset by the bank, but you can usually adjust them within the bank’s allowed range.

Limits vary widely by bank and account type. For example, some credit unions set daily spending caps for young children at just a few hundred dollars, while teen accounts have slightly higher limits.

Reference Example: Daily Limits by Institution Refer to the table below for an idea of limit structures. Note that actual limits depend on your bank’s policies.

Bank/Credit Union	Account Type	Daily ATM Withdrawal Limit	Daily Debit Card Spending Limit
UNFCU	Youth Checking Account	$60.00	$140.00
Wescom	Youth Banking (0–12 years)	$100.00	$250.00
Wescom	Youth Banking Plus (13–17 years)	$250.00	$500.00

Core Function Restrictions

Beyond spending limits, banks disable or restrict certain high-risk functions to protect account security. These US minor bank card restrictions ensure funds are used primarily for daily spending and saving, not complex financial operations.

Common core function restrictions include:

• Wire Transfer: Minor accounts typically cannot independently initiate or receive wire transfers. This function requires you, as the guardian, to handle it through your account or at a bank branch.
• Check Writing: Most teen accounts do not offer or restrict check-writing, and even if available, there may be maximum amount limits.
• Overdraft: Banks usually disable overdraft by default or do not allow overdraft protection enrollment. This means transactions are declined if the balance is insufficient, avoiding overdraft fees.
• P2P Transfer Services (e.g., Zelle®): These convenient tools have special rules for minors.
  • The child must have your (adult joint owner’s) permission to use Zelle®.
  • You can revoke permission anytime via the bank app. Once revoked, the child cannot use Zelle®, and pending transfers are canceled.
  • When the child turns 18, you lose control over their Zelle® usage.

Parental Monitoring and Controls

Parental control features are the most valuable part of minor accounts. Through the bank’s mobile app or online banking, you can manage the child’s account like a “remote control,” guiding them to develop good spending habits.

Key monitoring and control tools you can use include:

• Real-time transaction alerts: Set notifications to your phone for any card spending or withdrawal.
• Spending limit and type controls: Manage spending in detail.
  • Set spending locations: Restrict card use at certain merchant types (e.g., bars, liquor stores).
  • Set per-transaction amounts: Decline transactions over a specific amount.
  • Freeze and unfreeze card: If the card is lost or suspicious activity occurs, pause all transactions with one click in the app. Re-enable after resolution.

Practical Tip: How to Set Alerts and Decline Rules Bank apps usually allow complex rules. For example, set “decline all transactions over $200” while setting “alert me for any transaction over $100”. This prevents large spending while keeping you informed of significant purchases. You can also set alerts only for online shopping or transactions outside the US for precise monitoring.

Guide to Remitting from China to the US

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When transferring funds from China to a US minor’s account, you must follow specific procedures and regulations. This affects not only successful delivery but also legal compliance in both China and the US. Below is a detailed guide to complete the process.

Recipient Information Filling Standards

Accurately filling in recipient details is the first step to successful international remittances. Since minor accounts are joint with you, banks typically require you, as the guardian, to be listed as the primary recipient for compliance.

For wire transfers, you usually need to provide the sending bank with:

• Beneficiary’s Full Name: Your name (exactly as on the bank account).
• Beneficiary’s Address: The address registered when opening the account in the US.
• Beneficiary Bank’s Name and Address: For example, Bank of America, New York, NY.
• Account Number: The full account number of the joint account with your child.
• SWIFT Code: The bank’s international identification code for global wire transfers.
• ABA Routing Number: The US banking system routing number for domestic transfers; some international remittances also require it.

Operational Tip 💡 Before remitting, log into the child’s online banking or app—accurate wire receipt details are usually in the account information section. You can also visit a branch to obtain complete Incoming Wire Instructions.

China Foreign Exchange Control Regulations

When sending funds from mainland China, you must comply with State Administration of Foreign Exchange rules. Understanding these helps plan remittances effectively.

Under current policy, each Chinese citizen has an annual foreign exchange purchase limit of $50,000 USD equivalent. You can purchase and remit foreign exchange within this limit with valid ID at a bank. For amounts exceeding the annual limit, additional documentation and approval are required.

Practical Tip: How to Legally Remit Larger Amounts? If you need to send over $50,000 (e.g., for tuition and living expenses), ask your spouse or immediate family to help. For example, you and your spouse together have a $100,000 annual limit. You can each remit from your own bank accounts to the same US recipient account.

US Gift Tax and Reporting Regulations

When funds enter the US, pay attention to US tax rules, especially regarding gifts. Don’t worry—this usually involves “reporting,” not necessarily “paying tax.”

First, understand the Annual Gift Exclusion. Per IRS rules, any individual can gift a certain amount to anyone in a year without gift tax or reporting.

• The 2024 annual gift exclusion is $18,000.
• The 2025 annual gift exclusion will increase to $19,000.

This means you and your spouse can each gift $18,000 to the child’s account in 2024 (total $36,000), fully tax-free and without reporting.

What if the remittance exceeds this amount? Then understand Form 3520 reporting. When a US tax resident (including green card holders or those meeting the “substantial presence test,” such as you or your child) receives gifts totaling over $100,000 from the same foreign person or entity in a year, Form 3520 must be filed with the IRS.

Key Point: Reporting ≠ Taxation! Filing Form 3520 is an information disclosure to inform the IRS of foreign gifts. As long as the funds are genuinely gifts, you usually don’t pay tax. Failure to report on time can lead to significant penalties, so take it seriously.

International Remittance Channel Comparison

Choosing the right channel saves fees and improves efficiency. Below is a comparison of common channels:

Selection Advice

• Small, frequent remittances: Third-party platforms are ideal for convenience and low fees.
• Large, infrequent remittances (e.g., tuition): Traditional bank wires are slightly more expensive but mature, safe, and reliable.
• Overseas asset allocation needs: Routing through Hong Kong banks offers greater flexibility but requires familiarity with procedures.

Regardless of the method, keep all remittance records for bank or tax authority verification.

To open an account for your child, you must participate as the guardian. These accounts have multiple US minor bank card restrictions, including spending limits, account functions, and parental controls. When remitting from China, ensure recipient details are accurate—typically your name. Also, note US gift tax rules, especially when gifts exceed $100,000, requiring Form 3520 information reporting.

Final Advice We recommend choosing the most suitable account Unauthorized based on the child’s age and financial maturity. Before remitting, confirm all details with the bank to ensure funds arrive safely and compliantly.

FAQ

Can a child open a bank account in the US by themselves?

No. US law prohibits minors from opening accounts independently. You must open a joint account with the child as the legal guardian.

When remitting from China, whose name should be listed as the recipient?

List your own name. Since the account is joint, banks typically require the adult guardian as the primary recipient to ensure compliance and smooth crediting.

If I receive a remittance over $100,000, do I have to pay tax?

Not necessarily. You must file Form 3520 with the IRS for reporting. This is information disclosure; as long as the funds are gifts, you usually don’t pay tax.

Can I adjust my child’s bank card spending limit?

Yes. Most banks allow adjustments via online banking or mobile app. You can flexibly set daily spending and withdrawal limits within the bank’s range based on the child’s needs.

Through this comprehensive guide to U.S. minor bank card restrictions, we’ve highlighted UTMA/UGMA joint accounts and parental app monitoring, effectively addressing teen overdraft risks, $60-500 daily caps, and Zelle® consent controls—perfect for building financial habits or receiving family aid. Yet, for cross-border needs broadening to global multi-currency swaps, digital asset merges, or higher volumes, a more versatile, low-fee platform offers seamless enhancement, sidestepping China’s $50,000 annual forex quota and Form 3520 filing complexities. BiyaPay, the premier cross-border payment expert, enables instant swaps between over 30 fiat currencies and 200+ cryptocurrencies, with real-time exchange rate queries securing optimal mid-market rates like the current USD/EUR around 0.92, free of hidden surcharges.

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