Opening a bank account for your kid is an important thing as a parent in this digital era. These accounts are often free and require a low minimum balance requirement. Plus, they yield high-interest rates to grab more customers. But ensure you review its disclosures before banking with them.
Unlike custodial accounts, kid bank accounts are structured like joint ownership accounts. Let’s look at the best kids bank accounts.
1. Chase First Banking
Chase First Banking is built to enlighten teens and kids on the fundamentals of money management. The account serves children between 6-17 age. It guides kids in the right direction without eradicating the control measures that could lead to a severe mishap.
The control comes with debit cards and parental alerts to guide them on how they could spend wisely. Plus, spending limits that prevent children from overspending within a location.
· Yield: None
· Minimum balance and deposit requirement: To open a Chase First Banking account, you must meet the requirements. The bank account charges a $0 fee each month.
· Incentives and rewards: Once you join the account, you will access over 16,000 ATMs and Chase accounts. Besides, you’ll access the best educational tools, especially for first-time account holders.
2. Copper Banking
Can I create a bank account for my child? Yes, Copper is one of the best children’s investment accounts for kids between 13-17 age. With its special debit card and Copper app, kids can learn to use the platform effectively. Copper bank account connects kids and parents through learning programs. Also, it allows you to shop everywhere and withdraw cash from more than 55,000 ATMs for free.
Further, it enables users to send money instantly and monitor their spending. It teaches kids the importance of saving and financial habits by automatically setting aside a certain amount they earn for savings.
The bank uses secure authentication and encryption to protect users' accounts.
· Account opening bonus: Null
· Yield: None
· Overdraft fees: It doesn’t charge any overdraft fees
· Incentives and rewards: It has a referral program where an individual earns some extra cash for referring a friend. You can earn up to $3 for a successful referral.
· Minimum balance and deposit requirements: Copper bank require a minimum deposit of nearly $10, but it doesn't charge a maintenance fee or minimum balance requirement.
3. Axos Bank First Checking
What is a good saving account for a child? Axos Bank First Checking is built explicitly for children between 13-17 age. It is the best child account due to its friendly structured digital debit card dashboard and parental control features.
Axos Bank First Checking allows users to withdraw up to $100 daily, preventing kids from spending beyond their limits. With its biometric authentication protocols, you can flawlessly monitor your kids' accounts and cards, boosting security for your kids.
1. Yield: The account started charging approximately 0.10 percent on its balance on June 3, 2021.
2. Incentives and rewards: It offers around a $12 ATM reimbursement fee monthly.
3. Opening account bonus: None
4. Minimum balance and deposit requirement: No balance requirement or minimum deposit
4. Alliant Credit Union Free Teen Checking Account
This banking option is built for parents and children between 13-17 age. Because it doesn’t offer balance requirements and maintenance fees, it's an excellent checking account specifically for kids with summer jobs.
The account comes with a free check box and a Visa debit card to grab more users. According to a recent management review, its balance accumulates to approximately 0.25 percent if you opt into electronic statements. As a result, you earn one direct deposit monthly.
Once your kid turns 18, it automatically changes to an adult checking account. To open a Free Teen Checking account, you need to be an Aliant Credit Union subscriber. In case you live in Chicago, you can visit a physical branch.
· Yield: It charges an approximately 0.25 Percent APY on the balance. But if you plan to opt into an electronic statement, you can receive a singular direct deposit monthly.
· Incentives and rewards: It allows you access to over 80,000 ATMs across the United States. Its automatic debit card has a limit of around $100 withdrawals and nearly $300 total spending. The aim is to help you prevent overspending behavior among your kids.
· Opening account Bonus: None
· Minimum balance and deposit requirements: None
· Overdraft: As Alliant Credit Free Teen, you can effortlessly opt into an overdraft credit
5. Capital One MONEY Teen Checking Account
Which is the best child bank account? The Capital One Money Teen is an excellent checking account for children between 13-17 age. It doesn't offer minimum balance requirements, making it an ideal budget Account for children starting a banking option.
The account comes with Mastercard debit cards without electronic or checks bill pay mode. Plus, it allows parents to configure emails or text alerts for certain transactions and account actions precisely to monitor their kid’s spending behavior.
The also comes with different types of balance tracking and budgeting options, particularly financial education. Further, it offers up to $500 ATM withdrawals, $500 daily limit transactions, and $500 PIN transactions.
1. Yield: Approximately 0.10 percent on balances
2. Opening account bonus: None
3. Minimum balance and deposit requirements: None
4. Overdraft: Customer saving with Capital One 360 can automatically opt into its savings transactions to cover the transactions that would yield negative results.
5. Incentives and rewards: You can easily access more than 40,000 ATMs across the United States. Besides, it comes with a mobile-based- Capital One app that allows customers to deposit their cash affordably.