Can I Open a Checking Account for My Child?

Financial accessibility and convenience in carrying out monetary transactions are not a luxury but a necessity. In this globalized age, interconnectedness is the constant pillar and is the only way to stay at par with your current finances and economic status. This is true for adults and those 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 those who are constantly spending money and fulfilling their children’s demands.

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. The best checking account for kids is the Alliant Credit Union Free Teen Checking Account because of its small fees and great support.

The top bank checking accounts for kids are presented below. In our research, we created a Table of the top checking accounts for kids in the US:

Checking Accounts for Kids Research Table

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, a custodial account, and a reloadable prepaid debit card, which is considered a first step in giving financial emancipation to youngsters.

Joint bank account for kids

This option is ideal for those in a committed relationship aiming to share expenses or financial accounts. The same concept applies to partners, spouses, and even children, through which parents can enjoy the same independence and emancipation by making deposits and withdrawing cash as needed. However, parents have a slightly upper hand in 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, joint deposit accounts are profitable for day-to-day expenses and regular withdrawals.

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 wide range of assets. The primary owner and individual with the sole position are minors with the 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 a 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 applicable interest rate and did a ridiculous review of the banks’ policies before applying.

The 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 is a training scenario for the youngsters, giving them the proper 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 to five rewards and incentives, no extra payment is applied to affiliated ATMs. It also has access to education that is insightful for beginner account holders.

Copper banking

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 in every shop, and it offers free withdrawal at over 55,000 ATMs. The app also has a characteristic that helps regulate extra spending and keep track of the budget. It has an automatic saving feature to provide 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.

The minimum deposit is $10, and there is no minimum balance requirement. 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 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 a hundred dollars daily, and the point-of-sale transactions are $500 daily, automatically limiting expenses. With the state-of-the-art biometric authentication feature, the card and account are secured. All balances have a 0.10% yield APY 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 names of account holders. The rate of return is 0.25% when you choose an electronic statement and receive one direct deposit each month. When a minor reaches the legal age, 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 must 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 expenditures.

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 their children to provide partial independence and cash allowances.

Greenlight

Greenlight is a teen-oriented debit card that provides a meaningful relationship, allowing parents to manage their children’s allowances. Primary features consist of software that outlines options leading to financial incentives. Owners have the option of weekly or monthly allowance transfers with no requirement for 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 youngsters to save and spend wisely and reasonably.

The debit card plan starts at around $5 per month and includes identity theft protection and cell phone coverage for a maximum of $10 per month.

Go, Henry

It is highly user-friendly with the added feature of an available mobile app tailored explicitly for kids as young as six. Parents can constantly supervise their young kids, from managing finances to daily expenditures and saving up for school activities. This app ensures that instilling the value of money management is equally important. This app creates a conducive environment to contribute towards lifelong savings. Suppose automated allowances with one-time, recurring transfers are allowed. Furthermore, notifications and alerts are received, and protective features for identity theft become functional whenever the card is swiped. This facility is available for $4 per month for an individual child and goes up to $5 for a tailored card.

Famzoo

This versatile platform has more features than prepaid debit cards. It consists of a highly educational app that promotes money management and wise expenditure to teenagers, from compound interest to being financially self-sufficient. Teenagers can 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 6 dollars for a single family each month. Users 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 at least 18 years old. In the US, minors can’t open a bank account without a parent or guardian. The best savings account for kids is the Alliant Credit Union Kids Savings Account because of its small fees and great support.

Savings accounts in the United States are subject to strict regulations regarding cash withdrawals. Users can withdraw no more than six times per statement cycle.

Parents need to highlight and mention accounts other than joint and custodial upon initiation. Under United States law, minors have the authority to withdraw, credit, and transfer funds before turning 18.

Alliant Credit Union Kids savings account

You can enjoy full privileges with a $5 minimum opening deposit fee and 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 parents supervise and monitor parents manage and monitor the financial transactions, withdrawals, and deposits.

PNC bank

It is a 0% fee account for minors under 18. Minors can sustain and preserve their history after turning 18 with an additional five-dollar monthly maintenance charge. The five-dollar monthly fee is waived if the account holder is under 18, has a daily balance of $300 or more, and requires a minimum monthly balance of $25.

Regardless of the features and stipulations, plenty of user-friendly and team-oriented bank accounts 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 into the knowledge of banks and investments.

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Daniel Smith

Finance Analyst at Poduno LLC

Daniel Smith is an experienced economist and financial analyst from Utah. He has been in finance for nearly two decades, having worked as a senior analyst for Wells Fargo Bank for 19 years.

After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.


At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.


Read more on Daniel Smith's biography page.

Contact Daniel: daniel@promtfinance.com

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