As a parent, you’re constantly teaching your kids all kinds of life lessons. For example, financial education: Kids pay attention when it comes to how you spend and save your money. And the lessons they’re learning now will influence how they handle money as they get older.Opening a bank account for your kids might be an ideal way to teach them about money management. But it’s important to determine the right age to open your child’s bank account.
You may also want to know how to set up a kid’s bank account, and what to look for in a bank if you’re planning to open a savings account for your child. Here’s how to get started.
Deciding the right age for a child's Bank account
It can be tricky to know what age a kid should open a bank account. Your child can start learning money management at a very young age by saving coins in their piggy bank. But if your child is starting to receive checks for birthdays and holidays, or for performing well in school, that’s a good time to consider opening a bank account for them.
A savings account is a good first opportunity to educate children about some financial lessons:
- It teaches them to save for things they want instead of spending impulsively
- It can start to explain the value of interest as they see their savings grow
- They start to understand the value of money
- They learn to plan ahead and stay focused on goals
9 years old is a great age for a savings account
Financial experts suggest most kids are able to grasp money concepts by age 9, which makes it a good age to open an initial savings account. Because checking accounts require greater financial responsibility, they suggest waiting until your child turns 15 to open a checking account. Most checking accounts come with a debit card; it’s up to you whether to connect checking and savings accounts so your child can access both accounts.
Experts also recommend using the years between 9 and 15 to continue with age-appropriate financial education: Talk about credit and debit cards, discuss impulse buys and how to save up for smart purchases, and have conversations about how your child can earn their own money.
How to set up a kid’s bank account
Though a child can’t open an account on their own until age 18, as the child’s parent, legal guardian or grandparent, you can open what’s called a custodial account. Custodial accounts are accounts that are opened by a responsible person (you) on behalf of someone else (your child). You can open a custodial bank account at a bank, credit union or other financial services company.
Your account should allow you to have joint ownership, which lets your child use the savings account while you monitor the account’s activity. Both of you can make deposits and withdrawals.
To get started, you’ll need to bring with you the following documents:
- Your child’s name, birth date and Social Security number
- Your valid picture ID (driver’s license, passport, etc.) with updated address
- Your Social Security number
- Your personal information, such as your phone number and email address
What to look for in a bank
Whether you’re opening your child’s bank account at the same place you bank, or if you’re looking at a different bank for the best account for your child’s needs, each financial institution usually sets the terms for youth accounts. For example, initial investment requirements, minimum account balances, interest rates and management fees can vary.
If you’re trying to decide on the best bank to open a savings account for your child, here are some things to look for:
- No monthly maintenance fees
- No or low minimum balance
- A high annual percentage yield so they can see their money growing and stay ahead of inflation
- A low minimum to open the account
- Free online banking
Some banks offer you the benefit of automatic transfers from your account into your child’s bank account, if you first link the two accounts together. Ask whether there’s a maximum number of withdrawals allowed each month, which may include transfers.
We can help you get your child started off on the right financial foot
At First National Bank and Trust, we offer a simple personal savings account for kids,First Choice Savings, and a low-cost Basic Checking account that may be a perfect fit for your teenager. Both are perfect if you’re a parent looking for the best bank accounts for your kids because of our numerous features and benefits.
Get started online or visit one of our convenient locationsin Southern Wisconsin and Northern Illinois to open your child’s accounts today.
Open A First Choice Savings or Basic Checking Account Today
FAQs
Because checking accounts require greater financial responsibility, they suggest waiting until your child turns 15 to open a checking account. Most checking accounts come with a debit card; it's up to you whether to connect checking and savings accounts so your child can access both accounts.
At what age can kids open a bank account? ›
Generally, a child must be at least 18 years of age to open a bank account on their own, with some variability by state. However, there are several options that allow children and teens to access the banking experience before 18 with an adult cosigner or custodian.
Can I get my 11 year old a bank account? ›
Usually, your child has to be at least 11 years old to open a child account. Some banks have a higher age limit of 16. You may also find that additional features are made available once your child turns 16. Prepaid cards are usually available to children aged 8 and above.
Can kids under 13 have a bank account? ›
If your child is 14 or over, you can help them open an account online. If they're 13 or under, you'll need to visit a branch. Find out how to apply for an account for your child and what identification documents you need to supply.
Can a 12 year old have her own bank account? ›
Minor children by law can't open a savings account. They need a parent or guardian to set up a custodial or joint account. A custodial account is the property of the child, but managed by the parent until the child turns 18.
Can a 12 year old have a debit card? ›
Minors under the age of 18 are not usually permitted to open checking accounts in their name, but young adults over 13 can get a debit card with the help of an adult. Teen debit cards are typically connected to a joint bank account that both parents and teens have access to.
Can I have a bank account at 13? ›
Yes, but with some conditions. Those under 18 are often required to have a parent or guardian present, who may need to be an owner or co-owner of the account with the teen.
What age can a child have a debit card? ›
If you're 11 or 12, you'll need permission from your parent to access the Barclays app. They can do this when you first open your account, or by visiting a branch any time. To get a Barclays Visa debit card, you'll need your parent's permission. You need to be at least 13 years old to use Apple Pay.
How much money can I put in my child's bank account? ›
You can give a child any amount of money, or invest it for them, but if you're a parent or stepparent there are special rules: If you have given your child money that earns over £100 a year in interest, dividends, rent or any other investment income, the interest will be taxed as if it were yours.
Can I open an account for my baby? ›
Typically, if your child is under eight the account will be held in trust by the adult(s) who opened it. However, some accounts allow you to remain a signatory until your child is 16.
Typically, minors can use their birth certificate or social security card for their primary ID. Financial institutions usually require a parent or guardian to serve as a shared account holder, which will require the typical documentation required for opening a bank account.
Which bank is best for kids? ›
- Best Minor Savings accounts.
- Kotak Mahindra Bank Junior Savings Account.
- IDFC Minors Savings Account.
- HDFC Bank Kids Savings Account.
- ICICI Bank Young Stars Savings Account.
- SBI Savings Account for Minors.
- Methodology.
- Summary of Best Bank Accounts for Minors.
Documentations:
- Identity proof and address proof of the Minor.
- Age proof of the Minor (if ID does not confirm the Minor's Date of Birth)
- Photograph of the Minor.
- Declaration from Minor.
- PAN card of Guardian and Minor.
- Identity proof and address proof of Guardian (For Guardian consent variant)
PehlaKadam : Minor of any age. This account will be jointly opened with the parent/guardian. PehliUdaan : Minors above the age of 10 years and who can sign uniformly. This account will be opened in the sole name of the minor.
When can kids open a bank account? ›
Though a child can't open an account on their own until age 18, as the child's parent, legal guardian or grandparent, you can open what's called a custodial account. Custodial accounts are accounts that are opened by a responsible person (you) on behalf of someone else (your child).
What bank can a 12 year old have? ›
FlexOne current account. Our fee-free children's account for 11- to 17-year-olds to help you manage your money and earn interest.
Can a 14 year old child open a bank account? ›
Some banks allow children to jointly operate a bank account with their parents till the age of 10 years and from 10 years to 18 years, the child can operate the Savings Account by themselves. The Kid's Saving Account has all the features of a Regular Savings Account.
Do banks allow minors to open accounts? ›
Yes, you can. To open an RBC bank account for your child, you'll need to visit a branch. Explore youth and student banking options.
Can a parent take money out of a child's bank account? ›
Can You Withdraw Money From a Custodial Account? Yes, money can be withdrawn from custodial accounts, as long as it is used "for the benefit of the minor," a vague term that includes, but isn't limited to, educational costs.
