One of the biggest and most important life lessons you can never teach a teenager is how to manage their money. The very first step in truly understanding how money works and is managed is by opening a bank account. In this post, we will go over the best bank account options for teenagers.
What is a good bank account for teenagers?
The first thing we need to figure out before picking a back account is defining what a good bank account is.
In this day and age, they are so many banks teenagers can choose from. However, they are not all created equal. A good bank account helps establish good financial habits and also takes account fees associated with that bank account.
When a teenager is opening their first account, you don’t want them to have fees to worry about when they Aren’t earning that much yet.
So, without further Ado, let’s go over the best bank accounts for teenagers.
1. Capital One
Let’s start off the list with a well reputable Bank. Capital One it’s an excellent choice when deciding which bank accounts to go for first. This Bank offers very competitive interest rates and no monthly fee.
For teenagers wanting to open a bank account, there is no minimum balance. This means that they can take the little savings they might have and have no problems in opening an account. Capital One also offers online banking so an account can be opened from home. You don’t even need to go to a local branch.
Is a joint account holder, the parents can also help manage this account. You can set up alerts via email and text messages to prevent overdrafts and and wanted and excessive spending. In other words, the teenager can have their own debit cards to make their own purchases, but also allows the parents to help manage and monitor activities.
All of these parental features can be accessed through the Capital One app.
Similar to Capital One, Alliant it’s also a fantastic option as a bank account for teenagers. Aligned offers very high interest earnings and a very easy to monitor checking account.
At the time of writing this article, Alliance checking account offers 0.25% APY, making it a very good contender When comparing with other checking accounts. Alliance also makes it very easy to monitor transaction activity and set up alerts.
Alliance also does not have any monthly fees for their checking accounts. The only fee you have to pay to open an account is a $10 non-profit donation. This is the only fee one has to pay. Another fantastic feature of Alliant bank is that’s they offer up to $20 per month in ATM rebates. This is more than enough to cover the occasional withdrawal from non-Alliant ATMs.
3. Wells Fargo
For those parents that want to teach their teenagers more of the traditional banking experience, Wells Fargo is an excellent choice. A Wells Fargo’s teenager checking account cannot be opened online, but instead has to be done in person.
Because of this, it is a more brick-and-mortar traditional approach to banking. This will give a teenager a complete experience when it comes to banking. Sometimes, it never hurts to actually see a banker in person and have that face-to-face experience.
Apart from being a more Traditional Bank, Wells Fargos checking accounts with teenagers do not have any monthly fees. You do, however, needs to pay $25 as an initial deposits to open an account.
Once an account is created, the parents needs to sign up as a co-owner of the account. Using the Wells Fargo mobile app, parents can also monitor activity. Teenagers also have the ability to send and receive money through the app. An excellent, mature, and all rounded Banking option.
It’s closed off the list with one of my personal favorites, Chase Bank. This well-known Banking Giant has accounts that suit every kind of teenager. They have a Chase High School checking account suited for teenagers aged between 13 and 17. They also have a Chase College checking account what teenager is 17 years and older.
To open an account, teenagers are required to deposit at least $25 into their account. Unlike the other three options in this list, there is a $6 monthly service fee to consider.
The checking account we’ll have a Visa debit card, a mobile app, and mobile transactions support. The app can also be used to track balances and transactions.
Like any other financial decision, picking the best bank account for teenagers does not have to be super difficult. With just a quick Google, it’s easy to become overwhelmed with how many banking options they are out there.
Hopefully, this list can help shorten that search and make it easier for you. By allowing your teenager to have their own bank account, it will teach them Financial Independence and Financial Freedom. With your guidance and support, they can learn good financial habits early on in life.
Have fun with it!