What is a custodial account?

The Schwab One® 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.

What are the benefits of a Schwab One Custodial Account?

Every Schwab account comes with investment help and guidance. With this account, you'll also enjoy:

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No contribution limits

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24/7 service and support

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For a child under the age of 19 considered a dependent at the end of year (or a full-time college student under the age of 24), the first $2,500 of a child's unearned income is tax-free.¹

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No gift tax incurred for contributions up to $17,000 ($34,000 per couple) for each beneficiary in a single year.


1. Amounts over the $2,500 threshold will be taxed at the parent's tax rate. View Understanding the Kiddie Tax, or IRS Publication 929 for more detail.

Please note: 

  • 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.

With a Schwab One® Custodial Account, you get all the benefits of our popular 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.
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Custodial Account Pricing

  • $0

    Minimum opening deposit


  • $0

    Account open or maintenance fees.


    Other account fees, fund expenses, and brokerage commissions may apply2

  • $0

    Online listed stock and ETF commissions2

pricing disclosure

2. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules. Employee equity compensation transactions are subject to separate commission schedules.   

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Schwab Stock Slices™

Give the gift of ownership in America's leading S&P 500® companies when you use your custodial account to purchase fractional shares for as little as $5 each.

Related Questions

Have questions about our Schwab One Custodial Account? Here are responses to some of the most common questions we hear. If you have a question about your specific situation that is not answered here, please call us at 866-663-5247.

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

Custodial Account Application Checklist

It's helpful to have the following information on hand before you begin:

  • Your Social Security number
  • Your driver's license number
  • Your employer's name and address (if applicable)
  • The contact information, birth date, and Social Security number of the minor
  • Statement information for funds you may want to transfer to your custodial account
Application checklist