Best Bank Accounts For Teens-A Basic Guide
Helping your teen open a bank account can be an introduction to teaching him how to manage money with financial independence. There are plenty of banking features, so keep reading to know the best bank accounts for teens.
Teen bank accounts will make their budget and set their own financial goals. In addition, it will help your teens to learn the ins and outs of money management at such initial ages under your supervision. Many banks try to give solutions to parents on how they can help their teens with helpful tools and features.
It enables teens to have hands-on experience to deal with the freedom over their finances and how to earn some interest. While checking bank accounts for teens, go for those who offer minimal or no fees, easy access if you want access to the money, parental supervision access, digital banking tools with minimum requirements, no monthly or overdraft fees and excellent customer experience.
In addition, with budgeting features, some easy-to-use mobile apps and progressive online banking. Such features and tools, with no minimum balance requirements or monthly maintenance fees, will make the teens develop essential money skills in kids.
Before you sign up for bank accounts for teenagers, do your homework to know the different features of every account. We will provide tips you must look for while choosing an account for your kids and introduce you to some of the country’s top checking accounts and the features that make them a good choice.
Bank accounts for teenagers or teen checking accounts.
A checking account is an excellent tool for teens to understand the banking system and learn how to manage their finances. These accounts will help teens to learn money management under the supervision of their parents or guardians.
Teen checking accounts are similar to regular checking accounts but must have specific features to benefit teens. Teens usually need to gain experience managing money and navigating the banking system.
Teen accounts could be a good choice for both teens and parents as teens can learn financial management at an earlier stage of their life, and parents keep an eye on their kids’ spending habits. You can open two accounts with your kids: joint and custodian.
With a joint account, parents and kids have equal access to money as co-owners. In a custodian account, your child is the owner, and you are the custodian. In custodian accounts, you can not withdraw money; it is usually a savings account where you can only deposit money.
Your teens will seek permission to access the money in a custodian account unless they hit a certain age, like 18 or 21. Age limit varies depending on the different states you live in. However, a checking account is a path to financial freedom, but in a custodial savings account, the adult and teen can deposit money but can not withdraw it.
Such checking accounts will give your teens access to money while keeping an eye on them, with absolute financial control to make them get some experience under necessary restrictions.
What is a teen checking account?
A teen checking account is a joint account both teens and guardians/parents hold. Both will benefit from the checking account, such as debit card use, check writing and online banking features. But the teen has to seek permission from their parents to purchase and spend the money.
Many banks give access to parents for purchase approval, transactions alert, and certain limits on the use of debit cards. Such accounts will provide primary financial education and particular tools to help the teens to develop smart money management habits and make them intelligent spenders.
These accounts will enable both parents and teens to make conversations about money. It will make your kids learn the importance of saving and the benefits of money management. Parents, too, will feel a bit relaxed due to awareness of where and how their kids are spending money and learning to control spending habits while not wasting hard-earned money.
What factors must one consider for the teen checking account?
The best checking account for your teen suits your and your kid’s needs. Most parents want to give their kids basic knowledge of financial management before they go to college, any trade school or the workforce after high school.
Parents want their kids to learn some real-world experience and understand the importance of money managing their budget and bills. So bank accounts for teenagers are the best way to familiarise them with cash flow and become financially responsible adults. One must consider the following things to find the best bank account for teenagers.
Different types of fees
Save money in terms of hidden fees, such as choosing a bank that offers no or fewer monthly fees, Automated Teller Machine (ATM) fees, non-sufficient funds (NSF), and overdraft fees. Teens may use their accounts for daily use, even for minimal things, and still learn to manage their finances, so it is essential to keep associate fees low.
Teens must receive fee waivers as they have a limited income and fewer resources. There should be no fee even for debit card transactions. After hitting a certain age, whether 18 or 21, the teens can transform into regular checking accounts.
Minimum balance requirements
Checking accounts must be with minimum balance requirements or with accounts near zero; there must not be any obstacles. Find an account with no minimum requirements for any credit or anything similar.
Parents want to give their kids some financial independence but give them easy access to only some of their money. Teenagers need to be more mature to deal with money with care and adopt a careless attitude towards money; therefore, parents want to keep a vigilant eye on their spending.
For such concerns, banks offer certain facilities to parents, including setting withdrawal and debit card transaction limits. Some parents get notifications of their kid’s banking activities while keeping control of their spending habits.
Your bank must offer account conversions after the teens hit a maximum limit; they can turn into regular checking accounts. Read the criteria thoroughly and all the policies and regulations regarding the bank.
Look for banks with nearby branches that will make access easier during any need for services and the best to get in-person help. For a teen, cash deposit, withdrawal and money management are not that easy, so they always prefer convenient ATM networks and digital bank services.
Best customer services
Reaching out to the bank’s customer services representative when needed is imperative. Someone must be there when you need some help using any facility by the bank and answer the query when you feel stuck with bank service issues.
Choose the bank for your kid that offers impressive online banking and a digital mobile experience. Such exceptional services will make you monitor and manage your teen’s account while keeping an eye on their expenses and financial situation.
Mobile services will involve no fees for deposit, transfer or any other transaction with convenience. Usually, people spend most of their time on their mobiles and want exceptional mobile services.
It would be beneficial and educational for teenagers to learn about the interest rate on the amount and in which ratio they earn this interest.
Go for the options which ensure your safety in this uncertain era of inflation and insecurity. Check the credibility and bank insurance of specific affiliated departments.
Why do we need to open a bank account for our kids?
After finding suitable features from a particular bank that meets the needs of both parents and teens. While checking accounts, make sure it gives you the option of a joint account with you before the teen turns 18 or 21.
Documentation can vary by the financial institution, and you must provide information on the account application. Depending on the bank, after the pandemic, multiple banks have given the option to open an account online. One must provide
- Legal proof of full name (including state-issued ID or birth certificate)
- Social security numbers or tax ID numbers
- Home address proof
- Form of government identification including driving licence, passport or social security card.
As the account is approved, you or your teen can fund it in cash, check, or electronic transfer. One can download bank apps on their gadgets for personal use and set up alerts while enjoying various benefits. If the bank offers a debit card, they will mail it to you; stay patient about it.
What is the compulsion for a joint checking account?
For the joint checking accounts, the following conditions must be fulfilled:
- The minor must be 13 years old
- They can open an account online or in a branch
- Both parent/guardian and kid must be present to open the account.
What are the necessary things for a joint saving account?
For the joint saving account, one must fulfil the following conditions:
- The minor can be of any age
- They can open an account only in a branch
- The parent and the kid must be present to open the account, like in a joint checking account.
How much does a checking account for teens cost?
Generally, checking accounts for teens do not have monthly maintenance charges or account minimums to meet. No hidden charges or overdraft fees; however, a minimum amount for the initial deposit. Some checking accounts can charge ATM fees.
Opening a bank account for a 17-year-old
After finding a valid bank account, you need to provide details for you and your teen, such as an address, date of birth, ID numbers, and social security numbers. Some banks require parents or legal guardians to be joint account holders, and some allow anyone over 18 to be part of the joint account.
Parents usually plan what happens as their child turns 18, and they will remain the joint account holder with your kids. Banks mostly show clear policies to parents and convert teen checking accounts as children turn into adults. So, one must choose banks wisely by going through all their policies, which will help you in the long run.
At what age can a teenager open a bank account?
Various banks allow teenagers to open joint or custodial accounts with their parents or guardians. The age varies according to the policies of multiple banks. Some bank accounts start by age 13, but most prefer co-ownership.
Checking accounts for teens vs. saving accounts for teens
The main difference between a teen checking and a teen saving account is in withdrawals, chequebook accessibility and ATM card usage. Teen saving accounts usually have higher interest rates and make teens earn some money on their deposits.
However, checking and saving accounts for teens are best to teach them something about their financial management, have no monthly fees or hidden charges, and have incentives to help your kid save for the future.
Bank accounts for youth
Not all banks or credit unions offer to check bank accounts for youth. Still, we did a handful of research to find the best available accounts for the young ones; before choosing anything, keep an eye on their pros and cons and reviews, policies and regulations.
These best kids checking accounts are a good choice with lower or no deposit, parental control and low maintenance fees. It will enable parents to monitor their kids’ spending habits while setting certain spending limits for them.
Usually, banks offer checking accounts geared with various benefits to make teens learn to manage money and feel some financial responsibility. One must look for main traits while opening an account, including mobile banking, monthly minimum balance and fees, and parental control. Parents, too, must know before opening an account what will happen when their teen reaches a maximum limit.
Capital One Money Teen Checking account
This account will grow with your kid as one can start it earlier by 8. After opening the account, your kid can use a debit or ATM card nationwide. Your kid can use their debit card at 70,000 Capital One, Money Pass, and Allpoint ATMs.
This way, your kids could be financially independent, but the withdrawal limit could be $500, or the minimum limit parents can set according to their choice. Parents get notifications on the debit card’s usage or activity; additionally, they can block access or unblock their card. Parents can link any bank account related to their child and have access to their account history and control the kid’s spending.
There is no particular limit of money for opening an account, and you can open it with as much money as you want. No monthly or overdraft fees, with no minimum balance requirement.
After turning 18, your child will automatically switch to a regular Capital One 360 checking account and transfer their balance.
This account comes with two separate mobile app logins for parents and kids. Both kids and parents can use the bank’s highly-rated app for money management and categories their money by putting it into “Spendable” and “Set Aside” options.
We suggest this as the best bank for young adults as they can set their saving goals and earn a little interest on their balance with 0.10 per cent Annual percentage yields (APY).
Moreover, this account never allows teens to spend in specific categories such as drinking substances, liquor stores, cigar stores, car rentals and some forbidden online retailers. And parents should be someone other than Capital One customers to open an account; they can link external bank accounts to MONEY.
Chase first banking
The Chase first banking account is perfect for parents or guardians who want to put a vigilant eye on the finances of their kids and want to control their accounts. This Chase app has beneficial features and an account alert to track your teen’s purchasing and withdrawal limits.
Parents can set limits on specific categories and purchase from a specific type of retailer and can approve or decline the request for money. With this account, kids ages 6 to 17 get a debit card, but parents could have total control over it.
There are certain saving features for teens, and they can set specific saving goals and even have the ability to receive one-time payments. The mobile app’s saving feature can help you manage your budget.
There are no monthly fees, although there are out-of-network ATM fees. Some other features include assigning chores with rewards, limits on spending categories, and denying requests for money. But one has to pay a $3 fee for using non-Chase ATMs.
Chase high school checking account
The Chase high school checking account best fits teens ages 13 to 17. This account provides all the ways to track all the balance and account activity, including online bill pay, mobile banking, and account alerts.
All the suitable tools and information to develop your kid’s financial habits and management. When your kid turns 19, this account automatically becomes a Chase total checking account, and your kid will be financially independent and manage money by themselves.
There is no need for a money deposit or any monthly deposit when opening the account. Secondly, there are no monthly maintenance fees or any other hidden charges.
Parents can set transaction alerts and get notifications on every money activity, whether their kid is spending, withdrawing or depositing money. The bank requires that one adult connects to the teen’s checking account.
After a certain age, the account will convert into a college checking account with the facility of a monthly fee waiver for the first five years. But the condition is that you must be in college or make a direct deposit to the account every month.
USAA youth spending account
A youth spending account by USAA Federal Saving Bank without maintenance fees and a minimum $25 deposit. It is the best available account for those under 18 years old, as parents can keep an eye on money activities, not just transaction alerts.
Kids can not deposit or transfer money into anyone else’s account without their parent’s consent. They can even increase or decrease their child’s daily debit card limit. This checking account offers an adult account co-owner many options to control their spending habits, withdrawals and transfers.
The account includes mobile banking and online access. After turning 18, the account will automatically convert to a free USAA classic checking account with no monthly fees.
Alliant credit union teen checking account
The Alliant credit union teen checking account, similar to other accounts, offers parental controls for monitoring the money activity of teens. This teen checking account is perfect for 13 to 17 years old with an APY of 0.25%.
There is no minimum deposit requirement to open this account and no need to maintain a minimum monthly balance to open the account. However, no monthly fees, but the account holder has to pay overdraft fees to overdraw her account.
No monthly maintenance fees, but one must pay overdraft fees if you overdue the account. The Alliant check account refunds up to $20 per month for out-of-network ATM fees.
Parents receive notifications on any money use or transaction. They can easily access it on mobile to check their account balance, make payments or check deposits. Typically, it comes with a $100 limit from ATM withdrawal, and the daily spending limit is $300.
The APY is relatively competitive as it pays on all balances if your teen relies on electronic statements and receives an electronic deposit each month in their account. One must be a member of the credit union to open an account, and the credit union has a highly rated mobile app that makes teens budget well and pays with their mobile wallet.
Axos Bank’s first checking account
is among the best kids’ checking accounts, as it is best for teens because there are rarely any maintenance fees, it earns interest, and it reimburses ATM fees that would be around $12. Overall, account for teens due to numerous features, including parental control and the ability to earn interest that is 0.10 % APY annually, along with intuitive banking features.
This checking account is ideal for 13 to 17 years old, and after hitting a certain age and turning adult, they can convert the account into any of Axos Bank’s available checking accounts. You can check the account balance and updates regarding transactions and other account activities through mobile apps.
To open an account, you need $50, but there would be no account minimums after that. The fascinating feature is mobile banking, a user-friendly website, and text alerts for parents. A can earn $20 for each person they refer to Axos bank for qualifying an account.
Copper is a mobile banking app that teens and parents can use. This app is designed to help kids develop saving habits while spending and managing their money effectively. Account holders can use a debit card at 50,000 ATMs worldwide and quickly make online and in-store purchases if they accept a mastercard.
An intuitive app alongside educational tools such as quizzes and in-app lessons will enhance financial literacy skills. It offers slightly different financial education as compared to other checking accounts. By learning basic financial management rules, teens can decide their saving goals and track the money they use.
No monthly maintenance fees or minimum deposit requirements, and there are no even overdraft fees. The account holder can withdraw cash from 55,000 Allpoint ATM locations. However, your teen can only earn an interest in this account and can access the account in the mobile app.
Parents get real-time alerts, keep an eye on their kid’s spending, and automate their allowance payments. They can decide better how much money to deposit in their child’s Copper app account.
The best kids checking accounts offer plenty of features that will help teens to learn the ins and outs of money management under the supervision of their parents or guardians. These bank accounts for 17 years old or less have low to no maintenance fees with lower spending limits while offering parental control and debit cards.
It is pretty much understood to master personal finance takes trial and error. Choosing the best bank accounts for teens will make them monitor cash flow and help them to create a budget. Learning money management would be fun for them, and they feel confident and manage money wisely.
The best bank account for young adults will instill positive financial habits from the fundamental stage. Best banks for minors allow parents or guardians to set ground rules while teaching their kids the importance of saving and wise spending. Parents want their kids to learn money management skills and help them succeed in high school.