Your kid just turned 18? Here’s why it’s time to upgrade their bank and investment accounts

Many banks and platforms quietly let the account continue even after the child turns 18, until they hit a snag—like trying to withdraw funds or update a detail.

Once your child turns 18, their bank or investment accounts can’t stay under your control. They legally become the sole owner, even if you opened and managed the account on their behalf. If you don’t get the status updated, the account might get frozen or restricted until the paperwork is done.

What needs to be changed?

Start with their savings account. Most banks open minor accounts under the parent’s name as guardian. Now that your child is legally an adult, the bank will require an upgrade—this could mean submitting a new application form, fresh KYC (like Aadhaar, PAN), and a specimen signature.

For investments like mutual funds or stocks in their name, you’ll have to do a similar transition. The child now needs their own login credentials, updated nominee details, and in many cases, a fresh KYC.

Don’t wait for the account to get blocked

Many banks and platforms quietly let the account continue even after the child turns 18, until they hit a snag—like trying to withdraw funds or update a detail. That’s when the realisation hits: the account is still in minor status and can’t be operated anymore. Save yourself the last-minute panic and do it as soon as the birthday rolls around.

It’s also a good time to teach them

Use this transition as an opportunity. Sit down with your child and explain what this shift means. Let them know about the importance of tracking expenses, understanding interest rates, and knowing how investments work. This isn’t just paperwork—it’s your child’s first real step into financial adulthood.

What happens to joint control?

This is something many parents don’t realise. Once the account becomes a major one, your rights as a guardian disappear. Your child will have full access and control, and you won’t be able to monitor or operate the account unless they give you access again or add you as a joint holder or nominee. If you’ve been using their account for family expenses or managing it alongside yours, you’ll need to change your approach.

Better now than later

If your child is studying abroad or living in another city, not doing this on time can cause unnecessary headaches. Banks and investment platforms may demand physical presence or notarised documents, which can be tough to arrange once your child is no longer living at home. So it’s easier to handle it around their birthday when they’re still reachable and everything is fresh.

FAQs

Can my child keep using their debit card after 18?
Not until the account is upgraded to a major account. The old card may get blocked or limited, especially for online transactions.

Do I still have access once the account becomes theirs?
No. Once the upgrade is done, you’re no longer the legal operator. You can stay on as a nominee or advisor, but they run the show now.

Is this true for PPF or mutual funds too?
Yes. Any financial product opened in the minor’s name needs to be converted to major status after 18, or you may run into problems later while withdrawing or managing it.