The Right of Minors to Make Bank Deposits and Dispose of Deposits

📘 1. General Legal Analysis of the Provision

Article 25 of the Civil Code of the Republic of Kazakhstan establishes a special proprietary right of minors — the right to deposit funds in banks and to dispose of such funds. This provision is aimed at:

• developing the child’s property independence;
• fostering financial management skills;
• ensuring legal protection of minors’ deposits.

The rule differentiates the legal capacity and capacity to act of minors depending on age — under 14 years and from 14 to 18 years.

👤 2. Subjects and Age-Specific Features

📌 Comment: This differentiation is due to the limited legal capacity of minors under 14 (see Article 23 of the Civil Code of the RK) and partial legal capacity from the age of 14 (see Article 22 of the Civil Code of the RK). Despite the general prohibition on young children entering into transactions, an exception is allowed whereby parents may dispose of funds deposited in the child’s name, provided this is done in the child’s best interests.

⚖️ 3. Regulatory Framework and Links with Other Legal Acts

▶ Civil Code of the Republic of Kazakhstan:

• Article 22 – partial legal capacity of minors aged 14 to 18;
• Article 23 – transactions of minors under 14;
• Article 24 – requirement for consent of guardianship authorities for certain transactions;
• Article 25 – bank deposit agreement;
• Chapter 44 – trust management of property (including monetary funds).

▶ Code of the Republic of Kazakhstan on Marriage (Matrimony) and Family:

• Article 128 – disposal of a minor’s property requires permission from guardianship authorities in cases of significant risk.

▶ Law of the Republic of Kazakhstan “On Banks and Banking Activity”:

• Articles 30, 33 – procedure for opening bank accounts for minors;
• Article 50 – bank secrecy and protection of depositors’ interests.

🌍 4. International Standards and Principles

✅ UN Convention on the Rights of the Child (1989):

• Articles 12 and 27 – every child has the right to preserve and manage their property, including money and assets;
• Article 3 – the best interests of the child shall be a primary consideration in all actions.

✅ UNICEF Financial Inclusion Guidelines:

• Recognize the importance of teaching children to manage personal finances, including opening and maintaining bank accounts.

💳 5. Characteristics of a Deposit and Legal Consequences

A bank deposit is a civil-law transaction between the depositor and the bank, governed by:

• the agreement (see Article 272 et seq. of the Civil Code of the RK);
• general rules on obligations (Part 4 of the Civil Code of the RK);
• special banking regulations.

If the deposit is made by the minor personally, they have the right to:

• independently dispose of the funds within the limits of their legal capacity;
• receive interest, replenish the account, withdraw funds, make payments, etc.

If the deposit is made by a third party (for example, a grandmother), the right of disposal depends on the child’s age:

• under 14 years — the parents dispose of the funds;
• from 14 years — the minor disposes of the funds independently.

⚠️ Important: The bank may require documents confirming the minor’s age and identity, as well as documents confirming guardianship or legal representation.

🧾 6. Problematic and Disputed Issues in Practice

🔷 Question 1: Can parents withdraw money deposited by a grandmother in the child’s name?

➡ According to paragraph 2 of Article 25 of the Civil Code of the RK, if the child is under 14 years of age, parents may dispose of the funds only in the interests of the child (see also Article 138 of the Code on Marriage and Family of the RK). In case of doubt, the bank has the right to require consent from the guardianship authority.

🔷 Question 2: Can a 15-year-old teenager spend the deposit at their own discretion?

➡ Yes. If the deposit is made by the minor or in their name by another person, the minor has the right to dispose of it independently (Article 25, paragraph 2 of the Civil Code of the RK). However, in cases of systematic violations (for example, purchasing alcohol), guardianship authorities may intervene.

🔷 Question 3: Can a minor independently open a deposit?

➡ Yes. However, the bank has the right to establish internal regulations, including a minimum age (for example, 12+), document requirements, and, in certain cases, parental consent.

⚙️ 7. Protection of the Interests of a Minor Depositor

Banks are obliged to:

• ensure the safety of funds;
• not disclose information without the consent of the legal representative;
• notify guardianship authorities if there are doubts about the legality of disposal of funds.

In the event of a conflict, the bank may:

• suspend the transaction until the legal status is clarified;
• consult the local guardianship authority;
• refuse to execute an instruction if it clearly violates the child’s interests.

🏛️ 8. Examples from Judicial Practice

🔹 Example 1: Almaty, 2020Parents withdrew 1 million tenge from an account opened in the name of a 10-year-old child. Relatives filed a lawsuit, claiming that the funds were spent for personal purposes.The court found the parents’ actions contrary to the child’s interests and ordered the funds to be returned to the account. The absence of permission from the guardianship authority for spending a large amount was noted.

🔹 Example 2: Pavlodar, 2022A 16-year-old teenager opened a deposit for 500,000 tenge earned from tutoring. The parents attempted to withdraw the funds, but the bank refused.The court upheld the bank’s decision, referring to Article 25 of the Civil Code of the RK, which grants the minor the right to independently dispose of a deposit made in their name or by them.

🔎 9. Practical Recommendations

1. ✅ When opening a deposit in a child’s name, specify who has the right of disposal;
2. ✅ Parents and guardians should consider that misuse of a child’s funds may entail civil and administrative liability;
3. ✅ Banks should have internal instructions governing accounts of minors, consistent with current legislation.

📚 10. Related Legal Provisions

✅ 11. Conclusion

Article 25 of the Civil Code of the Republic of Kazakhstan serves as an important mechanism for developing the property initiative of minors while simultaneously ensuring legal protection of their assets. It maintains a balance between fostering financial responsibility and the necessary control by parents and the state. When properly applied, this provision contributes to the formation of financial management skills among children in a safe and regulated environment.

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