Best Bank Accounts For Kids Under 18 (Checking & Savings)

The world of banking can be an intimidating one for children and parents alike. To assist in navigating these waters, this article will offer an overview of the best bank accounts for kids under eighteen years old. It is important to note that both checking and savings accounts are considered in order to provide a comprehensive list of potential options. This article aims to break down what criteria should be considered when evaluating which account may work best for a family’s individual needs, as well as outlining some of the most popular choices available on the market today.

It is essential that families looking into setting up a bank account for their child understand the various features each type of account offers and how they differ from traditional adult ones. Checking accounts often have additional perks such as access to ATM machines or debit cards, while savings accounts tend to feature higher interest rates but lack the convenience factors associated with checking accounts. Furthermore, there are other considerations such as fees and minimum deposit requirements which must be taken into account before committing to any single option.

This piece seeks to simplify the process by providing an overview of some of the top contenders within both categories – highlighting key benefits, drawbacks, age restrictions and more – so readers can make informed decisions about which choice might suit them best.

Overview Of Banking Options For Children

Banking options for children under the age of 18 are typically limited to savings accounts, checking accounts and prepaid debit cards. Savings accounts can be opened with a minimal deposit and generally allow interest earnings on deposits. Checking accounts offer access to funds from anywhere, but usually require a minimum balance in order to avoid fees. Prepaid debit cards provide an alternative way to manage money without having access to a traditional bank account.

The advantages of banking products for children include convenience, security and parental control. Convenience is provided via online or mobile banking; parents may monitor their child’s financial activity at any time. Security is enhanced by fraud protection measures such as secure PINs or passwords that must be entered before accessing funds. Parental control allows them to limit spending amounts and types of transactions while teaching their children how to responsibly manage finances.

Benefits Of Having A Bank Account

Having a bank account provides children with an array of benefits, both financial and educational. This section will discuss the advantages for kids under 18 who open checking or savings accounts.

Financial Benefits:

  • Access to money: Having a bank account allows easy access to funds without having to carry cash around. For those under 18, parents can set up automatic transfers from their own accounts into their child’s thereby allowing controlled access to money as needed.
  • Security: A bank account is much more secure than carrying large amounts of cash in one’s pocket. Banks are insured by the FDIC so deposits placed in checking and savings accounts are safe if something unexpected happens.
  • Earning Interest: With a savings account, children can earn interest on any amount they deposit; this encourages them to save and make wise decisions about how they use their money.

Educational Benefits:

  • Learning Responsibility: Managing a bank account teaches responsibility and good decision making skills which help prepare young people for adulthood. It also helps when learning budgeting concepts such as balancing expenses versus income and saving for future purchases or emergencies.
  • Building Good Habits Early On: Opening an early banking relationship establishes credit history that could be useful later on down the road when applying for loans or other types of financing. Also, it gets kids accustomed to using banks at a young age which may result in longer term relationships with financial institutions throughout life.
  • Get Familiar With Banking Services & Products: Young adults have the opportunity to learn about different products and services available through banks like online banking, debit cards, e-statements etc., before they reach legal adult status (18). They become familiarized with these processes and better understand how banks work while still receiving guidance from parents/guardians should there be any questions or concerns along the way.

The benefits of opening a checking or savings account for children under 18 are numerous; providing them not only with security but teaching valuable lessons about personal finance and building positive habits that will stay with them throughout their lives.

Requirements For Opening An Account

In order to open a checking or savings account for minors under the age of 18, there are certain requirements that must be met. First, an adult parent or guardian must accompany the minor and provide proper identification in order for them to sign the necessary documents. Most banks also require proof of address such as a utility bill or lease agreement along with two forms of identification from both the minor and accompanying adult. Additionally, some financial institutions may need to see identification from more than one adult if joint guardianship is involved.

The legal minimum age for opening a bank account varies by state but is typically 13-18 years old. Furthermore, most banking institutions will not allow minors to use their debit card until they reach 16 years old due to federal regulations concerning underage transactions and consumer protection laws. For these reasons, parents should thoroughly research banks prior to committing to any accounts since eligibility rules can vary depending on location and other criteria like credit history.

Fees And Interest Rates To Consider

When deciding on the best bank accounts for kids under 18, fees and interest rates should be taken into consideration. Fees can vary from institution to institution, so it is important to compare options before making a decision. Additionally, many banks offer different types of account packages with varying levels of service, each with their own individual benefits and drawbacks.

Account Type Fees Interest Rate (%)
Savings Account Low or no monthly maintenance fee
No transaction fees
Low minimum balance requirements
0-1.00% APY (annual percentage yield)
Checking Account Monthly maintenance fee may apply
Transaction fees may apply
Minimum balance requirement varies by bank
No interest rate offered

Due to the lack of interest earned on checking accounts as opposed to savings accounts, choosing an appropriate type of account for your child’s needs should definitely be considered in order to maximize their money growth potential. Furthermore, if you are looking for more than just basic banking services such as online access and debit cards, look for institutions which offer additional features such as credit building tools or financial education courses that teach children about budgeting and managing money responsibly. Ultimately, it is up to parents to find what works best for them and their children when selecting a bank account package.

Popular Banks That Offer Accounts For Kids

Many banks offer accounts specifically tailored to children under the age of 18. These accounts can help teach young people how to manage their money, and some even provide rewards for wise financial decisions. Popular options include Capital One’s Kids Savings Account and Ally Bank’s youth checking account.

Capital One’s Kid Savings Account is a great way for parents to introduce their kids to saving and managing money responsibly. This account offers no minimum deposit requirements or monthly service charges, allowing customers to save as little as they want without penalty. Additionally, it has competitive interest rates that allow customers to earn more on their savings over time. Meanwhile, Ally Bank’s Youth Checking Account allows users aged 13-17 to open an account with only $25 initial opening deposit. It provides access to online banking services such as bill payment and mobile check deposits, along with debit card access in addition to other features like ATM fee reimbursement up to $10 per statement cycle. Both these bank accounts are FDIC insured so customers can rest assured that their funds are secure.

Tips For Choosing The Best Account

Having identified popular banks that offer accounts for kids, the next step is to consider tips when selecting a best account. A few factors should be taken into consideration, such as fees and charges, interest rates and rewards programs.

Fees and charges include those associated with maintaining an account or making transactions. It helps to compare what different banks are offering in terms of monthly service fees, minimum balances required to avoid fees, ATM access fees, overdraft protection costs and other potentially applicable transaction fees. Knowing about these potential expenses ahead of time can help make informed decisions on which bank offers the best value for money.

Interest rates refer to how much money one earns from having their funds deposited into a checking or savings account. Savings accounts typically yield higher returns than checking accounts; however this depends on the type of savings product chosen by the customer. To maximize earnings from deposits it is important to research current interest rate offerings from leading financial institutions before committing funds to any specific institution’s products.

Finally, many banks have rewards programs for customers who maintain certain levels of activity within their accounts over time. Rewards may come in forms such as cash back bonuses or discounts at select merchants. These benefits can add up over time if managed correctly so it pays off to investigate incentives offered by each bank prior to opening an account with them.


The primary goal of having a bank account for children under 18 is to help them learn about the importance and value of saving. It also provides parents with an opportunity to teach their kids responsible money management skills. With so many different banking options available, it can be overwhelming trying to choose the best one for your child’s specific needs. When choosing an account, consider factors such as fees, interest rates, requirements for opening an account and age eligibility. Additionally, take into consideration any special features that may be beneficial, such as online access or mobile apps.

When selecting the right bank account for children under 18 there are several important considerations. Research different banks in order to compare fees and interest rates before deciding on which option works best for you and your family. Make sure that all accounts meet the legal minimum criteria including parental consent if necessary and limits on transactions made by minors. Furthermore, ensure that all safety measures are enabled when setting up online access or other digital services associated with the account.

It is essential to find a suitable bank account option that fits within your budget while providing your child with financial security and education opportunities. Finding the perfect fit takes time but researching various banks will ultimately lead you towards making an informed decision about where to store your child’s hard-earned funds safely.

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