Financial accessibility and convenience to carry on with monetary transactions is not a luxury but a necessity. In this globalized age, interconnectedness is the constant pillar and is only one way to stay at par with your current finances and economic status. This is not only true for adults but for those who are stepping into the world of teenagers. If solemn responsibilities and financial hardships make your teenagers financially responsible and independent, it is a great way to push for confidence and encouragement. Undoubtedly, with constant supervision and monitoring, teenagers can be granted the economic independence that helps them set out their budget, shopping, gadget needs, money for eating out entertainment, and other minor chores. However, depending on your child’s maturity level, it could also be a financial liability for the parents, especially for those who are constantly spending money and fulfilling the demands of children.
Can I Open a Checking Account for My Child?
Yes, you can open a checking account or savings for your child as a guardian who is at least 18 years old. In the US, minors can’t open a bank account without a parent or guardian. In our opinion, the best checking account for kids is the Alliant Credit Union Free Teen Checking Account because of its small fees and great support.
Below are presented top bank checking accounts for kids. In our research, we created a Table of the top checking accounts for kids in the US:
Checking Accounts for kids Research Table
|Bank Checking Accounts for Kids||Minimum Deposit||Yield||Incentive|
|Chase First Banking||$0 but parenth must be bank customer||None||Free access to more than 16,000 Chase and affiliated ATMs|
|Alliant Credit Union Free Teen Checking Account||0||0.25%||80,000 fee-free ATMs around the United States.|
|Axos Bank First Checking||0||0.1%||12 in domestic ATM fee reimbursements per month|
|Capital One MONEY Teen Checking Account||0||0.1%||40,000 fee-free ATMs around the United States|
|Chase High School Checking||25||None||Fee-free access to 16,000 ATMs . Transfers to family and friends with Chase QuickPay® with Zelle®.|
|Copper Banking||10||None||$3 for each successful referral.|
|Wells Fargo Clear Access Banking||25||None||Fee-free person-to-person (P2P) transfers through the Wells Fargo app|
While the world has intrinsically infused technology infrastructure, banking and handling finances have also become digitalized. This tectonic shift is revolutionizing the traditional banking concept and has allowed a safe space for teens and children to conduct financial transactions and conveniently command their finances. Because of the digitalized banking notion and new approaches, teenagers have started to resonate with this non-conventional approach. With banking literacy increasing, text-savvy teenagers are becoming more familiar with the concept and gradually becoming purchasers of bank accounts.
This article will discuss potential kid-friendly and teenage-oriented bank accounts with joint custody or sole independence for checking or savings under 18.
Bank account for minor
As for the United States, no young children and teenagers can possess sole ownership of deposit bank accounts such as current and savings. However, certain banks and financial institutions such as credit unions allow teenagers to hold a bank deposit account with their parents. Children-oriented credit unions and banking platforms have different characteristics and permission requirements from the guardian or parent. It includes a joint account, custodial account, and a reloadable prepaid debit card which is considered a first step in giving financial emancipation to the youngsters.
Joint bank account for kids
This option is ideal for those in a committed relationship aiming to share expenses or financial accounts with each other. The same concept applies to the partners, spouses, and even children through which parents can enjoy the same independence and emancipation by making deposits and withdrawing cash as per need. However, parents have a slightly upper hand when it comes to the administration of joint bank accounts. If the kid is too young sole ownership is not applicable. You also have the option to regulate funds and set limits for cash retreats based on different factors. Nevertheless, for day-to-day expenses and regular withdrawal, joint deposit accounts are very profitable.
They also accommodate short to medium savings. Some of the checking accounts come with certain restrictions and organizations. For a savings account, withdrawals are limited to 6 per statement cycle. With more than the standard withdrawal, a penalty fee is applicable for long-term sustainability. A joint savings account is the way to go. You can also maintain the account for college tuition fees, purchasing your child’s car, or for a security deposit on the property.
Custodial bank accounts
Parents and guardians can launch a custodial account for their minor children as per the Uniform Gifts to Minors Act, and Uniform Transfers to Minors Act. This does not involve a trust fund or a trustee, and under this, there is a vast range of assets. The primary owner and individual with the sole position are minor with perks of being a primary beneficiary.
Once the minor reaches the age of 18, the account’s custodian will act as a steward. The role of parent or legal guardian in the custodial bank account is that of a custodian acting as a third-party financial advisor. They are also obligated to withdraw funds from the same account to cover expenses on behalf of the minor. As far as full ownership and control are concerned, the minor gets equal share funds for 18.
To identify the best option for checking accounts for minors, look out for reasonable fees and penalties with no minimum balance requirements. It would help if you analyzed the interest rate applicable and a ridiculous review of the banks’ policies before applying.
Following are the best checking accounts for minors under 18.
Chase first banking
It consists of a debit card tailored to teach minors’ responsibilities and obligations and an understanding of money management. Currently, ages 6 to 17 can be a part of this program. It acts as a training scenario for the youngsters giving them the right amount of knowledge and financial insights for future finances. The debit card has identifiable parental alerts to keep the parents and legal guardians in the loop. To apply, you need to be a part of Chase’s financial platform, with the monthly payable fee being zero. In addition, five rewards and incentives, no extra payment is applied on affiliated ATMs. It also has access to education insightful for beginner account holders.
This platform is highly friendly for minors aged 13 to 17 and has digital banking solutions for kids ages 13 to 17. The smartphone app and debit card provide educational information encouraging young teenagers to make responsible financial decisions and start earning. The debit card is universal and can be used on every shop and with free withdrawal at over 55,000 ATMs. The app also has a characteristic to help regulate extra spending and keep track of the budget. It is equipped with an automatic saving feature for providing a comprehensive idea of financial habits and healthy decisions. The secure encryption method and authentication feature protect the account. The corporate funds are wholly insured for up to 2 $50,000 to evolve bank and trust.
As far as the minimum deposit is concerned, it is not less than $10. And there is no requirement for minimum balance. In addition, the referral program allows you to earn extra cash, which is around $3 if it is successful. They also do not charge overdraft fees.
Axos Bank First checking
This checking account is entirely in for minors of 13 to 17 age. The parental controls are highly functional, efficient, and customized with the accessibility of a digital debit card allowing parents and children to make informed decisions together. The cash withdrawal limit is hundred dollars per day, and the point of sale transactions is $500 per day, automatically limiting the expenses. With the state-of-the-art biometric authentication feature, the card and account are secured. There is a 0.10% yield APY on all balances starting from June 3, 2021. In addition, account owners can enjoy $12 for a domestic fee each month.
Alliant credit union Free teen checking account
another possible way to increase financial interaction between parents and youngsters is to opt for a zero monthly maintenance fee platform. This is also a practical option for those who are a part of summer jobs or part-time internships. Teens can manage and supervise their first checking account as it also comes with a free Visa debit card and checkbook with the name of account holders. The rate of return is 0.25% when you choose an electronic statement and receive one direct deposit each month. When minor reaches the legal each, the account is automatically transformed into an adult checking account with sole responsibility and ownership. If you wish to open a free teen checking account on behalf of your children, you need to be a member of the alliance credit union. This platform is advantageous as it provides access to more than 80,000 fee-free ATMs throughout the country. $100 is the daily cash withdrawal limit, and $300 is the limit to fight to overspend and keep a check on extra expenditure.
Those who wish to open up completely independent accounts for the children can opt for repair debit cards. Many parents own American Express, Visa MasterCard, or other prepaid debit cards for the children to provide partial independence and cash allowances.
Greenlight is up teen-oriented debit card that provides a meaningful relationship allowing parents to manage the children’s allowances. Primary features consist of software that outlines options leading to financial incentives. Owners have the option of weekly or monthly allowance transfer with no requirement of manual deposits. Whenever the debit card is issued, notifications and alerts are received. Parents have the option to customize and tailor the account stipulations as well as the total expenditure limit. It encourages the youngsters to save and spend wisely reasonably.
The debit card plan starts at around $5 per month with the added element of identity theft protection and cell phone coverage for a maximum of $10 per month.
It is highly user-friendly with the added feature of o available mobile app tailored explicitly for kids as young as six years old. Parents can keep constant supervision on their young kids from supervising finances to daily expenditure and saving up for school activities. This app makes sure that instilling the value of money management is equally important. This app creates a conducive environment to contribute towards lifelong savings. Suppose allows automated allowances with one-time, recurring transfers. Furthermore, notifications and alerts are received, and whenever the card is swiped, protective features for identity theft become functional. This facility is available for $4 per month for an individual child and goes up to $5 for a tailored card.
This platform is versatile and consists of features more than a standard prepaid debit card. It consists of a highly educational app that promotes money management and wise expenditure to teenagers starting from compound interest to being self-sufficient financially. Teenagers have the option to choose from spending, saving, or giving accounts. It consists of payment splits outlining the transference of money to other accounts. It has an informal loan acquiring feature, particularly for parental disbursements. Parents get a notification or alert message allowing them to approve their children’s expenditures. The average package for this platform is $6dollars for a single family each month. Uses can also decide to pay in advance and get a significant discount for as low as $2.50 per month for the entire family for two years.
Can I open a savings account for my child?
Yes, you can open a savings account for your child as a guardian who is at least 18 years old. In the US, minors can’t open a bank account without a parent or guardian. In our opinion, the best savings account for kids is the Alliant Credit Union Kids Savings Account because of its small fees and great support.
|Bank Savings Accounts for Kids||Minimum Deposit||Yield||Incentive|
|Alliant Credit Union Kids Savings Account||5||0.55%||No monthly fees for members who use e-statements.|
|Capital One 360 Kids Savings Account||0||0.3%||Make recurring transfers based on an automated savings plan|
|PNC Bank S is for Savings® Account||25||Vary||Automated savings feature|
The savings account in the United States are subject to strict regulations in terms of cash withdrawal. Users can indulge in cash withdrawal for no more than six per statement cycle.
For accounts other than joint and custodial, parents need to highlight and mention it upon initiation. The United States law subjects minors with the authority to withdraw, credit, and transfer funds before turning 18.
Alliant credit union kids saving account
You can enjoy full privilege with a $5 minimum opening deposit fee with an investment yield of 0.55% APY. Kids can enjoy partial authority and financial independence starting from the age of 13. Kids older than 13 are ineligible. The financial transactions, withdrawals, and deposits are supervised and monitored by the parents.
It is a 0% fee account for minors under 18. With an additional five dollars monthly maintenance charge, minors can sustain and preserve their history after turning 18. The five dollars monthly fee is waived off if the account holder is less than 18, if the account consists of a daily balance of $300 or more, and if the account requires a minimum of $25 each month.
Regardless of the features and stipulations, there are plenty of user-friendly and team-oriented bank accounts that encourage and guide parents to make a final decision. In addition to the monthly maintenance of finances and everyday funds, these platforms are highly educational and provide insight regarding the knowledge of banks and investment.