The Illinois Banking Act permits banks to establish deposit accounts for minors with the same terms as if the minor is an adult. 

However, in our view, a minor should at least be old enough to physically sign the account agreement. If a minor is too young to sign such an agreement, there is no guarantee that Illinois courts would uphold the parent’s signature on behalf of a minor. For minors who are too young to physically sign an account agreement, we recommend instead suggesting a custodial account (such as an account created under the Uniform Transfers to Minors Act) whereby an adult custodian opens the account and manages its funds on behalf of the minor.

For resources related to our guidance, please see:

• Illinois Banking Act, 205 ILCS 5/45.1 (“A state bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity.”)

• Schmidgall v. Engelke, 81 Ill.App.2d 103 (3rd Dist. 1967) (A parent by his relationship to minor is without authority to enter into contracts binding on a minor.)

• Villalobos v. Cicero School Dist. 99, 362 Ill.App.3d 704, 712 (1st Dist. 2005) (“Illinois courts have held that neither a next friend nor a court-appointed guardian can approve a settlement of a minor’s claim without court approval. . . . [The minor] is not in the same position as minors who were actual signatories, like those involved in the cases cited by defendants. . . . Thus, we are inclined to think that disaffirmance and ratification do not play the same role in cases, such as this, where the minor is not a party to the original contract but, rather, is purportedly represented by his parents.”)

• Leonard C. Arnold, Ltd. v. Northern Trust Co., 116 Ill.2d 157, 166 (1987) (“We therefore hold that a contingent-fee agreement, entered into on behalf of a minor by his next friend, is enforceable unless the terms are unreasonable.”)

• Illinois Uniform Transfers to Minors Act​

760 ILCS 20/2 — Definitions

760 ILCS 20/10 — Creation of Custodial Property

760 ILCS 20/13 — Care of Custodial Property​

760 ILCS 20/21 — Termination of Custodianship