Looking for a child bank account with debit card? Allowing your child or teen to manage their own money is an excellent way to give them some financial independence, and get them to learn vital budgeting skills at the same time. In this article, we’ll cover some of the best child bank accounts around currently.
Capital One® Teen Checking Account
Capital One’s MONEY account can be opened online or in-person at a branch and has no fees and no minimum balance requirements. A Mastercard® debit card is included, in your teen’s name which can be used without charge at 39,000 Capital One and Allpoint® ATMs.
Your teen will be able to monitor their balance, deposit checks, set up direct deposits and manage their account information, all through Capital One’s banking app. They will also have the opportunity to earn interest at 0.25% APY on their account balance.
No overdrafts are allowed; transactions are declined in the case of insufficient funds. Because the MONEY account is paperless, no checks are included.
As a parent, you’ll act as a joint account holder, meaning that you can access your teen’s checking account to see what transactions they’ve been making. Once your child reaches the age of 13, they’re eligible to open a MONEY account with you. When they reach 18 years old, the MONEY account rolls over into a 360 checking account.
Wells Fargo Teen Checking Account
This account is best for teens aged 13-17. It works in much the same way as the Capital One MONEY account in that your child can manage their own money, with a parent as a co-owner.
Teens can send and receive money and check their balance and transactions using the Wells Fargo Mobile app® for smartphones and tablets.
There is no monthly service fee attached to the Wells Fargo Teen Checking. However, a $25 deposit is needed to open the account. Withdrawals from Wells Fargo ATMs are free, but your teen will be charged $2.50 to use other ATMs in the U.S. Here’s a list of other common fees you may come across with this account.
Alliant Teen Checking Account
Another option well worth checking out is the Alliant Teen Checking Account. Kids aged 13-17 can open an account with a parent, as long as the parent is an Alliant member. There are zero monthly fees or minimum balance requirements. Check out Alliant’s fee schedule for other fees that may apply from time to time.
A key benefit of this account is that your teen can earn interest at 0.65% APY on the balance they hold. Both you and your teen will be issued with a Visa® debit card in individual names, plus a box of checks with both names on. It can be used at more than 80,000 ATMs, plus Alliant offers ATM rebates of up to $20 per month for out-of-network ATMs.
Alliant’s smart mobile app makes budgeting and monitoring a piece of cake, even on the go. There is a built-in personal financial management (PFM) feature that allows your teen to identify spending categories that are placing a strain on their pocket so that they can make adjustments accordingly.
Any of the above bank accounts mentioned above are suitable for young people under the age of 18, and they can be opened online with a parent acting as co-owner.
One account worth looking at for even more financial independence, that’s still suitable for under 18s, is the Chase College Checking account. Your teen can open it on their own (online) providing they’re a student with a social security number and are at least 17 years old.
The account is actually for students aged 17-24. A $25 minimum deposit is needed upon opening. A $6 monthly service fee applies – however, this fee is waived for up to 5 years, while your teen is in college – so they can effectively bank for free. (Other charges apply – see here.)
New Chase College Checking customers can take advantage of a special offer that’s currently available – $100 when you enroll in paperless bank statements and make ten qualifying transactions within 60 days of the account being opened.
Setting your child or teen up with their own checking account is one of the best money lessons you can give them. Doing so introduces them to the concept of banking: making transactions; transferring money; writing checks; spending with a debit card and withdrawing cash from ATMs when they need to.
Most importantly, a dedicated checking account allows your child to make both good and bad financial decisions when it comes to spending, so they can learn from their mistakes with parental support, before entering into the world of adulthood.
*The facts contained within this article are correct at the time of publishing. Please note that this information doesn’t constitute professional financial advice.
More on Prepaid debit cards for minors