One of the main complaints about many people is the lack of money management education they received as children. There are ways for kids and their parents to escape this pattern with the best checking accounts for teens. As a bonus, parents may help their children learn about money management by setting spending limits and keeping a watch on their children's spending habits.
Since many accounts are available, it's critical to identify your specific requirements. Finally, it's time to evaluate each account and see whether it's a good fit for your needs. We've produced a list of the best teen checking accounts and highlighted each account's characteristics to make the search easier.
Take into Account the Factors
Before starting college, having a bank account may give students excellent real-world experience in budgeting, cash management, and bill paying, to college. A wide range of tools and features are available to assist students in becoming financially savvy adults. Consider the following points.
Mobile Banking
Because let's face it, most of today's adolescents are glued to their smartphones and tablets. Choosing a bank that has mobile banking is a no-brainer if you have young children. This is made further easier because most mobile transactions, like deposits, transfers, and other kinds of transactions, are free or very low-cost.
Fees and Minimums each Month
Inquire about monthly minimum balances and associated costs. As a teenager, you have a limited quantity of money. Therefore this is extremely vital. Additionally, ATM costs are waived by some banks, while debit card transactions are free at other institutions.
Child Safety Locks
Allow your teen some financial freedom, but don't give them full control of your bank accounts. They mustn't blow through their savings during this crucial time in their life. Because of this, many banks allow parents to place limitations on their children's debit and credit card withdrawals. Some even notify parents via text message when their adolescent has made a deposit or withdrawal. If you don't have access to any parental controls, you may still keep tabs on your teen's spending by opening a joint checking or savings account with them.
Conversions of Accounts
This is also true for the adolescent account: your teen won't be a teen forever. Ensure you know what will happen to your account when the maximum age restriction has been reached. Is there a way to make it a standard checking account automatically? Is it possible for your adolescent to maintain the account and all of its perks while attending college? You'll want the least amount of difficulty possible while choosing a solution. The next step is to examine which banks match your demands before narrowing down the options for your teen's account. We've gathered a few of the most popular choices for you.
Capital One
There is a Capital One Financial account (COF) specifically designed for teenagers. The Money account is a free, no-minimum account that does not charge a monthly fee. In addition, the account offers an annual percentage dividend of 0.10 percent (APY).
Teens that prefer online banking but don't want to deal with the trouble of going to a physical location would also enjoy this account. Using the Capital One app on a mobile device, you may open an account and do basic check deposits and transfers. Parents who want to keep tabs on their children's bank accounts can opt to get text alerts for every transaction they make.
Wells Fargo
Wells Fargo &'' Company (WFC) offers a no-fee Clear Access Banking account with a $25 opening deposit. The account has money management capabilities that might help teenagers. Routine banking and fraud detection are made easier with mobile access from the bank.
Union Bank &'' Trust
Union Bank's (UNB) Teen Access Checking is geared for 13 to 17.6. It costs $100 to open, but there is no ongoing monthly fee. 78 Its most important feature is that parents may set daily spending and withdrawal limitations on the account's ATM or debit card. Mobile banking, an online banking website, and a bill-paying application are all options for access to the account.
USAA
No fees are charged for the USAA Federal Savings Bank's Youth Spending account, with a $25 minimum deposit and no monthly fees. 9 Co-owners of checking accounts can limit spending, withdrawals, and transfers, and they can use connected credit cards or accounts for overdraft protection. The account comes with online and mobile banking capabilities. Classic Checking accounts are free when you reach 18, and there are no monthly fees.
Alliant Credit Union
Alliant Credit Union's adolescent checking account provides mobile and internet access, as well as spending and withdrawal limitations. Only accounts with paperless statements and at least one direct deposit per month are eligible for the 0.25 percent APY. If your adolescent uses an out-of-network ATM, Alliant will reimburse you up to $20 in monthly ATM costs. Mobile payments can also be made using the account's P2P function.
Citizen's Bank
Up to age 25, Citizen's Bank, a subsidiary of Citizen's Financial (CFG), doesn't charge monthly fees for students opening accounts. With online and mobile banking, it gives a comparable account experience to a joint checking account 12 when a savings account is connected to a checking account, and the bank gives additional tools to help kids create goals and manage money for things like buying a vehicle, going on vacation, or going to college.
First National Bank and Trust
First National Bank and Trust Company's checking account for 16- and 17-year-olds offers no monthly fees and a $25 minimum balance required to start. All of these services are included in the adolescent checking account.
