No, we do not believe your bank would be subject to discrimination claims if you set a minimum age for minors to open an individual account, although we do recommend that you apply such a policy consistently.

Generally, prohibitions of discrimination apply only to loan products, and, in that context, discrimination against an applicant based on their age is prohibited only if the applicant has the legal capacity to contract. Minors in Illinois cannot enter into legally binding contracts, since an agreement with a minor is voidable by the minor party (with some exceptions, as in cases of emancipated minors or contracts entered into by minors for the purpose of obtaining “necessities,” such as food or lodging).

The Illinois Banking Act does permit a bank to establish deposit accounts for minors and provides that the bank’s rules and regulations “shall be as binding upon such minor as if such minor were of full age and legal capacity.” But it also states that a bank “may accept deposits made by a minor and may open an account in the name of such minor.” In other words, the law is permissive, and banks are not required to open individual accounts for minors, another reason that requiring a minimum age to open such accounts should not subject a bank to discrimination claims.

For resources related to our guidance, please see:

• Equal Credit Opportunity Act, 15 USC 1691 (“It shall be unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction (1) on the basis of race, color, religion, national origin, sex or marital status, or age (provided the applicant has the capacity to contract)