Grow college savings—and investing confidence—with a custodial account.
Why choose a Schwab One Custodial Account?
A Schwab One Custodial Account lets you invest in your child's future while teaching them how to build it. Along the way, you'll also benefit from:
Potentially favorable tax treatment
Gift-tax exclusion for annual contributions
No contribution or withdrawal limits1
Flexible use of funds for the minor's benefit
Important details to keep in mind:
- All assets are held in the child's name.
- 20% of the assets will be considered when applying for financial aid.
- A custodial account is an irrevocable gift and must be turned over to the child when he or she reaches the age of majority, typically 18 or 21 (or up to 25), depending on the governing state.
- Any funds used prior to the age of majority must be used for the sole benefit of the minor.
Get the same flexibility and capabilities as our Schwab One brokerage account.
- Buy and sell stocks, mutual funds, ETFs, and other securities.
- Take advantage of potential long-term growth.
- Set aside money for your retirement, or other goals like college tuition or a down payment.
- Gain access to investment research, tools, and strategies.
Common questions
If you have a question about your specific situation that is not answered here, please call us at 866-663-5247.
A custodial account is a brokerage account that allows you to make a financial gift to a minor and help teach them about investing. It is set up and managed by an adult and turned over to the child when he or she reaches the age of majority—typically age 18 or 21 (or up to age 25), depending on the governing state.
It's quick and easy to open a Schwab One Custodial Account online, or you can always call 866-663-5247 for assistance.
We'll send you your account number as soon as your application is completed and approved. You can use your account number to log in to Schwab.com and manage your account.
If your primary goal is to offer funds for college, you might want to consider a 529 College Savings Plan or an Education Savings Account, which have specific tax advantages for saving for college. Talk to your tax advisor to find out if it might be right for you.
If that's your primary goal, you might want to consider opening a trust account, which can offer you more flexibility, control, and protection than any other type of account.