Fidelity^® Youth Account

• What is the Fidelity Youth Account?
  • The Fidelity Youth Account is a teen-owned brokerage account that comes with a debit card. It is not a joint account or a custodial account.
  • The Youth Account will allow a teen to save, spend, and invest in a single account.
  • The Youth Account has no subscription fees, no account fees, no minimum balances,¹ and no domestic ATM fees.²
  • The teen is the owner of the account and has control over it (i.e., they are the sole decision-maker, not the teen's parent or guardian).
• Is the Fidelity Youth Account a savings or investment account?
  The Fidelity Youth Account is a brokerage account that allows a teen to save, spend, and invest in one place.
• Is the Fidelity Youth Account a joint account or custodial account?

  No, the Youth Account is a teen-owned brokerage account. It is owned by the minor, who makes all the investment decisions. This is unlike a custodial account (e.g., Uniform Gifts to Minors Act [UGMA] account or a Uniform Transfers to Minors Act [UTMA] account) where the custodian makes the investment decisions on the minor's behalf.

• How is a Youth Account different from a Roth IRA for Kids?
  The Youth Account is a teen-owned taxable brokerage account. It is owned by the minor, who makes all the investment decisions. This is unlike a Roth IRA for Kids, which is a custodial account that an adult opens and manages on behalf of a child under age 18 who has their own employment compensation.³ Earnings in a Roth IRA for Kids grow federal tax free; qualified withdrawals are also tax free.⁴
• What steps do I take to open a Youth Account?

  You, the parent or guardian, and your teen can open this brokerage account together. There are a few regulatory and legal steps you and your teen will have to complete first. As parent/guardian, you must:

  • Have an existing Fidelity brokerage or Cash Management Account.
  • Log in to your account to begin opening a Youth Account.
  • Upload images of physical documents of your teen’s Social Security card, plus one of the following: a current passport, birth certificate, driver’s license, or school ID.

  Once you complete the application process and submit the required documents, your teen will receive an email/SMS text with next steps. (NOTE: If steps are incomplete, the account will not be available to receive funds or trade.) Your teen will have to:

  • Establish a username and password.
  • Download the Fidelity Mobile^® app and accept the Terms of Agreement. Once logged in, your teen will also have to accept the Youth Account Terms of Agreement.

  Once that last step has been completed, any funding links between your Fidelity account and your teen’s account will be activated. (Please allow 2 business days for this process.)

• Can I open a Youth Account for my teen who resides outside the US?
  No. Fidelity Youth Accounts are only available to US residents with a US address.
• What control will I have over my teen's Youth Account?

  As parent/guardian, you will:

  • Initiate and approve of opening the account.
  • Retain the ability to close the account and/or cancel the debit card at any time.
  • Be an Interested Party with "inquiry access," meaning you'll be able to review debit card statements and trade confirmations. All account transactions will be viewable online as they occur.
  • Be designated as the "trusted contact" and serve as a point of contact for Fidelity.
• How will I be notified about activity in my teen's Youth Account?

  As an Interested Party, you (parent/guardian) will receive copies of trade confirmations and monthly account statements. You will have access to view your teen's debit card transactions via "inquiry access" on the account (i.e., the Youth Account will be listed along with the parent's other accounts on Fidelity.com and on the Fidelity Mobile^® app). You can also set up alerts for your teen's trades, transactions, and cash management in the Alerts Center on Fidelity.com.

  To set up an alert:

  1. Log in to Fidelity.com.
  2. Go to the News & Research tab and select Alerts.
  3. On the left side, click Cash Management.
  4. Select Alert Setup and check the box for Debit Card Usage.
  5. Select your teen's account and submit the required information.
• What are my responsibilities as parent/guardian?

  As parent/guardian, you are obligated to provide supervision/oversight and to be responsible for your teen's actions. In any instances of suspected fraudulent activity on the account, you (parent/guardian) will be the main point of contact. You (parent/guardian) should review the Fidelity Youth Account Parent Agreement (PDF) for more information.

• By opening a Fidelity Youth Account, will my teen be able to view other Fidelity accounts they do not own?

  Yes, in addition to their Youth Account, your teen will also be able to view the following:

  • Accounts established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA) where your teen is the named beneficiary.
  • UGMA or UTMA 529 custodial account where your teen is the named beneficiary. Note: Non-custodial 529 plans will not be visible.
  • Any Roth IRA for minors established for the teen.
  • Any IRA where the original account holder is deceased, and the assets have passed to your teen as the named beneficiary on the account.

  Your teen will only be able to view information about these accounts. They will not be able to transact or make changes to these accounts.

• Who is responsible for taxes or fees associated with the Youth Account, my teen or me?

  The funds in the account belong to your teen. Both you (parent/guardian) and your teen should consider the tax consequences of funding the account. Earnings on the account may require your teen to file a tax return and pay taxes on those earnings, or, if you and your teen meet certain requirements, you may elect to include such earnings on your (parent's/guardian's) tax return to pay the applicable taxes. Additionally, funds used to open the account may be subject to gift taxes if given by you (parent/guardian) or other third party. This is only a summary of some of the tax implications of opening a Youth Account. You should consult your tax advisor regarding the federal, state, and local tax consequences and/or potential impact to future student aid by opening an account with respect to your and your teen's personal situation.

• Can I open a Fidelity Youth Account for my teen if I don't already have a retail brokerage relationship with Fidelity? For example, what if I am a 401(k) participant?

  No, you (parent/guardian) must have some form of retail brokerage relationship with Fidelity (e.g., retail brokerage account or Fidelity^® Cash Management Account) to open a Youth Account.

  If you don't have a Fidelity retail brokerage account for yourself, it just takes a few minutes to open one. Just select the desired account type to get started.

• If I close my retail account with Fidelity, can my teen's Youth Account remain open?

  Should you (parent/guardian) decide to end your retail relationship with Fidelity, the Youth Account will remain open for your teen. Until your teen (at age of majority) transitions the account to a standard brokerage account, you will remain associated with and will continue to have access to the account and be responsible to oversee and supervise the account. While you are associated with the account, your Fidelity login credentials will remain active.

• Can the parent/guardian associated with the Youth Account be changed after opening?

  At this time, changes to the parent/guardian identified as the Interested Party cannot be made except in cases of death or disability. If you as parent/guardian become unable to fulfill your obligations for any reason (e.g., disability or death), your teen must notify Fidelity. We will close the Youth Account and open a new Youth Account, with a new account number, debit card, and a new Interested Party parent/guardian. The new parent/guardian will need to have a Fidelity retail brokerage relationship.

• Are there any offers currently available?

  For a limited time when you open a Fidelity Youth Account for your teen, they will get a $50 reward. Learn more.

Errors and technical difficulties

• I received an error message when I submitted my Youth Account application. What should I do?

  If you already have an account for your teen, such as a UGMA, UTMA, or a Roth IRA for Kids, your teen's Social Security number and name are registered with Fidelity. The new Youth Account must match the name previously entered for these other accounts exactly or you will receive an error.

  Log in to check the registration details that you previously used in other accounts, and use that info exactly as you enter it into the Youth Account application. Potential details to check include spelling, middle name, initials, using or omitting a hyphen in a name, etc. Note: If the Social Security number previously used is incorrect, please contact Fidelity at 800-343-3548.

• My teen did not receive a welcome email/text. What steps should we take?
  If your teen hasn't received a welcome email or text, please ensure that you have uploaded pictures of your teen’s identification documents (their Social Security card, plus one of the following: driver's license, passport, birth certificate, or school ID). You can also have your teen try to establish a username and password. If successful, have your teen log in and navigate to their Profile page to check the data that was entered during Account Opening.
• My teen is having trouble setting up a username/password. What should we do?

  Your teen should receive a welcome email or text when it’s time to set up their username/password. If this step hasn't happened, they won't be able to set up a username/password. If they have completed this step, they can try using this link to establish their login credentials.

  If they're still unable to complete the process, please use the Fidelity Automated Phone System to establish a username and password by calling 800-544-5555 and following the prompts.

Financial industry professionals

• A member of our household works in the financial services industry. Should a Youth Account be reported to the appropriate employer?

  It all depends on the employer. We recommend consulting that company's Legal and Compliance department to find out.

Documentation/account opening

• How do I submit identification documentation to open a Youth Account?

  During the online account opening process, you (parent/guardian) will need to upload pictures of your teen's identification documents. These include either their Social Security card or a copy of the first page your latest signed and filed tax return with your teen's name and Social Security number clearly visible, plus one of the following: an unexpired driver's license, passport, birth certificate, or school ID. You will also be able to submit these documents afterward in the Your Transactions page on Fidelity.com.

• I didn’t submit my teen's identification documents when I opened the Youth Account. Where can I submit them now?
  Please log in to upload your teen’s identification documents.
• I don’t have my teen's Social Security card. How can I open the account?

  In lieu of an image of your teen’s Social Security card, you can submit a copy of the first page of your latest signed and filed tax return. This document should have your teen’s name and Social Security number clearly visible.

  You can also request a duplicate Social Security card here.

• My teen got an email asking for identification documents. Where can I submit them?
  Please have your teen upload their identification documents.
• Why does Fidelity need multiple forms of identification for my teen?

  Although you typically only need a Social Security number to open a standard Fidelity brokerage account, Fidelity is required to comply with anti-money laundering regulations. Our approach is to attempt to verify the required information via non-documentary means. Your teen's age may prevent Fidelity from verifying the required information electronically, so we require additional documentation to verify their identity.

• Why does Fidelity need my teen's contact information?

  Your teen is our customer, and we need this information to communicate with them, as we would any other customer. This may include sending them certain required account information, such as statements and trade confirmations, and notifying them of any issues with their debit card.

• Does Fidelity require consent for electronic delivery of account information?

  Yes, as a condition of opening the Youth Account, both you (parent/guardian) and your teen must consent to electronic delivery. (In the case of the parent/guardian, this consent applies only to the Youth Account.)

• Will Fidelity use my teen's contact information to sell them other financial service products?

  We use email as the primary communications method to notify account holders of features and updates regarding the Fidelity Youth Account. Fidelity will not use your teen's information to directly market other financial service products to them. It is possible, however, through the normal course of the customer relationship, that your teen may see general Fidelity marketing (e.g., banner ads, social media posts).

Account funding

• How can I fund my teen’s account?

  You (parent/guardian) can fund a Youth Account by transferring money from your Fidelity account(s) to your teen's Fidelity account. The account can also be funded by electronic funds transfer (e.g., ACH), wire transfer, mobile check deposit, or US mail check deposit. Transfers or deposits of securities are not permitted. Your teen can also transfer funds from digital payment apps (e.g., Venmo, PayPal, CashApp) to their Youth Account. For ACH transfers, your teen must also be an owner or joint owner of the originating bank account.

• How can I transfer money to my teen?

  You will need to link your account to your teen's in order to transfer money. Before you can send money, your teen must download the Fidelity Mobile^® App and activate their account. Then, once the account opening process has been completed, you can set this feature upLog In Required and designate the account(s) you wish to link to your teen’s account. If the page does not work on your device, copy the URL to a different browser like Chrome, Safari, or Firefox. The process will take approximately 2 to 3 days to review and establish. Once connected, your teen's account will display as an option whenever you choose the Transfer functionality on the Fidelity Mobile^® App or on Fidelity.com.

• How do I link my trust account to my teen’s Fidelity account?
  You (parent/guardian) will need to fill out the Standing Transfer Instructions form (PDF) to set up a link between your Fidelity trust account and your teen’s Fidelity Youth Account.
• I linked my Fidelity account to my teen’s Fidelity account, but I still can’t transfer money.
  If you linked a brokerage or Cash Management account, it takes approximately 2 to 3 days to review and establish after your teen creates their username/password, logs in to the Fidelity Mobile^® app, and accepts the Youth Account terms of agreement. Once connected, your teen’s account will show up as an option whenever you choose the Transfer functionality on the Fidelity Mobile^® app or on Fidelity.com.
• Can parents and grandparents contribute money to my teen's Youth Account?
  You (parent/guardian) can fund a Youth Account by transferring money from your Fidelity account(s) to your teen's Fidelity account. The account can also be funded by electronic funds transfer (e.g., ACH), wire transfer, mobile check deposit, or US mail check deposit. Transfers or deposits of securities are not permitted. Your teen can also transfer funds from digital payment apps (e.g., Venmo, PayPal, CashApp) to their Youth Account. For ACH transfers, your teen must also be an owner or joint owner of the originating bank account.
• Why can't I see my teen's account when I try to transfer money?

  If you've already set up a link between your account and your teen's, check to make sure they've downloaded the Fidelity Mobile^® App and activated their account. The account can't be funded until your teen takes these steps.

Closing the Youth Account

• How can I close my teen's Fidelity Youth Account?

  Either you (parent/guardian) or your teen can close the Youth Account at any time. When the account is closed, any securities in the account must be sold and the proceeds will be disbursed by check in your teen's name. Securities cannot be transferred in kind. Please contact a Fidelity representative at 800-343-3548 to process your request.

Account transition

• What happens when my teen turns age 18?

  Once your teen reaches age 18, the account is eligible to transition to a standard Fidelity brokerage account without the need to transfer assets to a different account or generate a new account number/login credentials. As the account owner, your teen will need to agree to a new set of governing documents, including a new account agreement. Your teen will be prompted to transition their account starting on their 18th birthday. The debit card they were issued for their Youth Account will continue to be valid until it expires. At that point, a new brokerage debit card will be issued. They can access information about their card on the debit card page.

  The Fidelity Youth Account is not a custodial account, and the state law definitions of age of majority that pertain to the transition of custodial accounts do not apply to Fidelity Youth Accounts.

• What happens if my teen does not transition the account at age 18?

  On your teen's 18th birthday, the account will be restricted from making any purchases of additional securities (including execution of open orders). Sixty days after your teen's 18th birthday, Fidelity will prohibit deposits and deactivate the debit card. Your teen will always be able to sell their holdings. Until the account is transitioned, you (parent/guardian) will remain associated with and will continue to have access to the account.

Securities, trades, limits

• How can my teen begin to invest?

  Once you complete the application process and submit the required documents, your teen will receive an email/SMS text with next steps. (Note: If all steps are not completed, the account will not be available to receive funds or trade.) Your teen will have to:

  • Establish a username and password.
  • Download the Fidelity Mobile^® app and accept the Terms of Agreement. Once logged in, they will also have to accept the Youth Account Terms of Agreement.

  Once that last step has been completed, any funding links between your Fidelity account and your teen’s account will be activated (please allow 2 business days for this process). Once the account is funded, they'll have the ability to make a trade. To do this, they can navigate to the Transact tab within the app and watch an instructional video that walks them through the process.

  Note: Before your teen begins investing, please ensure that they are in fact ready to invest. Help them understand that investing involves risk and that they can lose money. Please ask them to visit the Youth Learning Center in the app to see 101-level content that can help them understand more about investing and finances.

• Is there a minimum balance for my teen's Youth Account? Is there an account limit?

  There is no minimum balance requirement. We suggest that deposits be limited to no more than $30,000 per calendar year. We will monitor account deposits and reserve the right to restrict additional deposits and trading capabilities if annual activity exceeds this limit.

• Is there a limit on the amount that can be direct deposited from an employer into my teen's Fidelity Youth Account?

  There are no limits on the amount that can be direct deposited into the Youth Account from an employer. We suggest that deposits be limited to no more than $30,000 per calendar year. We will monitor account deposits and reserve the right to restrict additional deposits and trading capabilities if annual activity exceeds this limit.

• Are there withdrawal limits on my teen's Youth Account?

  The debit card has daily spending limits (both individual and gross daily) for transactions and cash withdrawals. There are no limits on withdrawals by other means (e.g., check, EFT, wire). Transfer of securities in kind out of the Youth Account are prohibited.

• Can I withdraw from my teen’s saving or investing account?
  No, parents/guardians cannot withdraw money from their teen's account. Only the Youth Account owner (your teen) can withdraw money from the account.
• Can my teen send gifts to tax-exempt organizations?
  Your teen may not gift securities from the Youth Account. However, if a charitable organization accepts debit cards, your teen may donate cash from their account.
• What securities is my teen able to invest in?

  The Youth Account allows for the buying and selling of only certain securities that are publicly traded in the United States. This includes:

  • Most exchange-listed National Market System (NMS) securities, including shares issued by large and small public companies listed on an exchange for purchase by the public. Your teen can also purchase a fraction of a share of most NMS securities.
  • Shares of Fidelity mutual funds, including Fidelity ZERO expense ratio index mutual funds, Fidelity municipal bond funds, and Fidelity money market mutual funds (including the money market fund used as the account's core position).

  Your teen cannot purchase securities other than those described above (e.g., third-party mutual funds, corporate bonds, municipal fixed income securities, certificates of deposit, and Treasuries cannot be purchased). Also, there are certain types of NMS securities that can't be traded or held in the Youth Account. These include shares of real estate investment trusts, convertibles, and leveraged and inverse exchange-traded funds. There are also certain trading features that are unavailable, including options and margin trading. After-hours trading is prohibited. Other exclusions include:

  • FILI insurance products
  • Short selling
  • Penny stocks (typically issued by small companies and costing less than $5 per share)
  • International stocks
  • Foreign currencies
  • Participating in a company's initial public offering (IPO)
  • Other securities that present unique risks or complexities that make them unsuitable for inexperienced investors
• Can my teen trade cryptocurrencies in the Youth Account?
  No. Due to the increased level of risk associated with cryptocurrencies, Fidelity does not currently offer this option in our brokerage accounts, including the Youth Account.
• Are there any other trade limits on my teen's Youth Account?

  Currently, there are no limits on the number of trades or total dollar amount of any one trade or in the aggregate. All funds in the account are available to invest, subject to normal uncollected funds process and unsettled cash trading rules (e.g., free riding and good faith violations). You (parent/guardian) can view all trades in the Youth Account by looking at their Account Summary page while logged in to Fidelity.com or the Fidelity Mobile^® app. Just click the Youth Account and select History.

• What is my teen's role in proxy voting or corporate actions?

  Your teen may participate in corporate actions or proxy voting, as this comes with the territory when investing. However, your teen should work with you (parent/guardian) to decide whether this makes sense for them.

Notifications, statements, and confirms

• What notifications, statements, and confirms will be sent to my teen?

  All standard account-related correspondence will be provided to your teen (e.g., brokerage account statements, tax report notifications, trade notifications). Debit card usage alerts (for debit transaction notifications) are also available but must be set up by your teen in the Alert Center.

Debit card

• Can my teen manage their debit card online?

  Yes, online card management is available for card activation, viewing card limits, managing PINs, locking and unlocking the card, replacing the card if lost, stolen, or damaged, and managing travel preferences. Debit card usage alerts (for debit transaction notifications) are also available but must be set up in the Alert Center on Fidelity.com.

• Are there any features or limits on my teen's debit card specific to the Youth Account?

  Yes, the debit card is subject to daily transaction limits (both individual and gross daily). Your teen can view the daily limits and remaining balance associated with the debit card on the Fidelity debit card page. Daily limits reset each day at 12:00 midnight ET. Daily limits are subject to the Available to Withdraw balance in the account. Domestic ATM fees charged by other institutions will be reimbursed.

• Whom should we contact if there is an issue with my teen's debit card?

  For debit card issues, your teen can contact Fidelity Debit Card Services using the number located on the back of their card or 800-323-5353. When placing the call, your teen should have their debit card number, the last 4 digits of their Social Security number, and their Fidelity account number. If your teen needs assistance, they can consent to allow you (parent/guardian) to join the call to provide instructions or act as the primary point of contact if follow-up is needed.

• What if I don't want my teen to have a debit card? Can they still open a Fidelity Youth Account?

  A debit card will automatically be created and sent to your teen when a Fidelity Youth Account is opened. You (parent/guardian) or your teen can choose to deactivate the debit card at any time without closing the Youth Account by calling a Fidelity representative at 800-343-3548.

Financial education

• What financial education resources are available for my teen?

  We've created a dedicated resource to help teens learn good financial habits called the Youth Learning Center. It can be found in the More tab when your teen is logged in to their account on the Fidelity Mobile^® app. You can also find these education materials on Fidelity.com.