Bank accounts to consider for your child in 2024

As money becomes less common, it is incredibly vital to teach children financial literacy early on.

Opening a checking account for your child can instill precious money management skills and budgeting habits. According to , junior savings accounts and ISAs are great for long-term saving; nevertheless, children can profit from access to funds for on a regular basis activities and learning.

Many banks now offer current accounts specifically for children. “Children’s financial habits are formed by the age of 7,” said Louise Hill, co-founder of the pocket app GoHenry. “…In the absence of financial education in primary schools, children are missing out on a huge opportunity to learn money skills that influence their life decisions.”

Choosing the most effective account

Ideal accounts for kids balance affordability, accessibility, and academic tools. When selecting an account, listen to low or no fees, convenient access methods and features that encourage saving.

notes that it’s clever to differentiate account types depending on your goals. Look for key features like connected savings accounts and spending control. Additionally, rates of interest should be taken under consideration as banks are actually offering higher returns due to increased base rates. Current accounts facilitate access to funds for educational purposes. Savings accounts earn interest on larger sums. Junior ISAs provide tax-efficient long-term investments, although funds are locked in until the age of 18.

Opening an Account for Your Child

Application process reflects opening an account for an adult, according to , shares basic personal information resembling names, birthdays, and Social Security numbers for each parent and child. Contact information, identity verification and an initial deposit are also typical requirements. If you open online, you’ll have your account number and routing number to facilitate transfers.

Many providers issue debit cards to children, allowing you to monitor your spending once activated. This hands-on experience is precious, but time is vital.

There is not any definitive “best” age to open an account because children develop financial awareness at different rates. Experts recommend starting with a savings account around age 6 to spark financial curiosity. Some children show readiness through earnings from chores or academic incentives, while others show interest once employed. Whenever natural opportunities to manage money arise, initiating access to banking reinforces positive habits for life. When children in their teens receive advantages or income from work, an expense account increases budgetary efficiency.

According to , parents should consider certainly one of the next bank accounts for their child.

Banks with spending limits

First Axos inspection

• Teenagers aged 13 to 17
• Zero monthly maintenance fee
• Minimum deposit $50
• Checking your account balance earns you interest
• Daily transaction limits: $100 for money withdrawals, $500 for debit card purchases

Go, Henry

Prepaid debit cards from services like GoHenry work like digital “pocket money” accounts, allowing parents to top up with spending notifications and parental controls.

• Children from 6 years of age
• Possibility to top up your debit card
• Includes savings options
• No debit, transaction or foreign fees
• Monthly fee starting from $4.99 to $9.98
• Add up to 4 subaccounts
• Use any ATM

Step

An excellent credit-building option, Step offers teens the liberty to spend, save and invest

• Secure Visa debit card
• Mobile banking application
• No monthly or overdraft fees
• No minimum balance required
• Smart Pay feature to construct credit
• Report positive payment history to the most important credit bureaus
• Competitive savings rate

Chase First Banking

Kids can enjoy a more traditional banking experience by spending and saving with access to over 15,000 Chase ATMs.

• Ages 6 to 17 years old
• Chasing your debit card
• Shopping in stationary and online stores
• No minimum deposit and no monthly fees
• Set spending limits and alerts
• Parent should be a Chase customer

Accounts where you’ll be able to give attention to saving

Capital One 360

This free banking option offers multiple accounts to fund quite a lot of purposes.

• Savings account for children
• Teen Checking Account MONEY
• Joint parent-teen account
• Debit card
• Online banking application
• No minimum deposit and monthly maintenance fees
• A savings account earns 2.5% APY
• Set up multiple accounts

Copper

Teach your child personal funds and money management with the Copper debit card.

• For children and teenagers
• Copper debit card for spending and withdrawing
• Rewards for savings
• Direct deposit
• Division
• Automatic reload to transfer money
• Investment portfolio

Aliant-Credit Union

• Checking accounts for teenagers aged 13 to 17
• Savings accounts for children up to 12 years old
• It should be a joint account with a parent or grandparent
• No minimum balance or checking account fees for teens
• Debit card
• Competitive rate on savings for children

MPH Bank “Makes people happy”.

• A spending and savings account for ages 10 to 24
• Contactless debit card
• No monthly fees
• Savings app for kids
• Savings balances earn interest compared to traditional bank accounts
• Hired teenagers are paid two days in advance with direct deposit

All-in-one application.

Green light

The banking and investing app offers an ideal option with several parental control options.

• Children and teenagers
• Debit card
• Get 1% cashback on your savings
• Rewards for savings with a bonus of up to 5%.
• Parents pay their children via the Greenlight app
• Set spending control
• Track your expenses and withdrawals with notifications
• Monthly fees range from $4.99 to $14.98

Common advantages amongst providers include no overdraft fees, robust parental monitoring and easy-to-use digital platforms that engage children in money management. With age-appropriate banking tools, children gain real-world experience in responsible fund management under the supervision of their parents.