Custodial account
Invest in your child’s future
Save and invest on a child’s behalf with a custodial account, while maintaining full control until they reach adulthood.
Now get up to $1,000 $1,500 for a limited time1
What is a custodial account?
A custodial account (otherwise known as an UGMA/UTMA account) is a taxable brokerage account opened and maintained by an adult on behalf of a minor. Think of it as a long-term gift that grows with the child in your life—and that may be used to help teach them lifelong lessons about saving and investing.
Why open a custodial account?
Built by you for the next generation
You control the account until the child turns 18 or 21 (depending on your state).
No contribution or income limits
Contribute as much as you’d like—and make withdrawals anytime for the benefit of the minor.
Tax perks that can make a difference
The account qualifies for the annual $19,000 gift tax exclusion. Plus, a portion of annual earnings may be exempt from federal tax.
Low fees, wide range of investments
Give them a head start—plant the seed for what’s next.
Open a custodial account and start building a portfolio for the next generation—managed by you until the time comes for them to take over.
Awards and recognition
E*TRADE recognized in Nerdwallet’s “Best Custodial Brokerage Accounts for 2026” review, earning 4.5 out of 5 stars.
Nerdwallet 2026 Review6
How to get started
1
Open
Choose “Custodial Account” and enter custodian and minor details.
2
Fund
Start with what you’re comfortable with. Add more anytime.
3
Invest
Build a portfolio you can adjust over time as goals evolve.
Get up to $1,500 for a limited time1
Open and fund a new eligible brokerage account with a qualifying deposit by 10/31/26. Terms apply. Use promo code: OFFER26
Explore similar accounts
For children with earned income
IRA for Minors
Tax-deferred savings for a child’s education
Coverdell ESA
Frequently asked questions
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When the minor reaches the age of termination under the applicable state law (generally 18 y/o or 21 y/o), control transitions to them.
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When referring to "Custodial Accounts," we mean Uniform Transfers to Minors Act or Uniform Gifts to Minors Act accounts. These are investment accounts owned by the "minor" and administered by a "custodian" until the minor reaches the age of termination under the applicable state law (generally 18y/o or 21 y/o).
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Withdrawals can be made for the benefit of the minor. Rules and tax treatment can vary—consider talking with a tax professional.
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You control the account until the child turns 18 or 21 (depending on your state).
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A custodial account can be used for a wide range of goals that benefit the child. If your primary goal is education-only savings, you may also want to compare education-focused accounts (like Coverdell ESAs) for different tax considerations.