In the early days, opening a bank account was only preserved for adults. However, times changed and now kids can also have their own bank accounts and save money there. Remember that kids are very observant and they normally model their parents’ behavior.
If you are smart in managing your money, your child will follow suit. By opening a bank account for your kid, you will be able to teach them a valuable life lesson about financial responsibility. Instead of being too extravagant, they will be motivated to save more with an aim of accomplishing a certain goal in the future. Ideally, you should purpose to open a child bank account that comes with a debit card.
This way, your kid will be able to withdraw cash from their account at any ATM. Also, they will be at liberty to use this card to shop in retail shops and even online. This article will outline some of the best child bank account with debit card among other considerations that you should make.
How to Choose a Child Bank Account With a Debit Card?
Before you sign your kid up, there is a need for you to do your homework well and choose the best bank account. Remember that every account is different and therefore there is a need for you to be rational when choosing one for your kid.
After all, your kid will have to adhere to the terms and conditions of that bank account as long as he or she is a member. Some of the considerations that you should make include:
1. Consider Mobile Banking
In this era of modern technology, most people hardly visit bank halls in order to carry out transactions. Instead, they use their mobile devices in order to carry out these transactions from the comfort of their homes. Your kid is no different. He or she should be able to enjoy the convenience of mobile banking as well.
Such is usually ideal if there are no fees involved with transfers, mobile deposits, and other transactions made on a tablet or phone. Your child’s bank account should readily allow mobile banking for convenience purposes among other advantages.
2. Check the Monthly Minimums and Fees
Besides the convenience of mobile banking, you should be keen to ask about monthly minimum balance requirements and any other associated fees. This is because your kid does not have a lot of money that needs to be subjected to additional charges.
Since your kid has a limited amount of income, you should consider banks that have waived ATM fees among other charges. Generally, your kid should not be overcharged to transact with his or her bank account.
3. Parental Controls
Although kids would like to enjoy some financial independence, you should not give them free rein over their bank account. Remember that out of curiosity, they might be tempted to do several things without your consent. Fraudsters on the other hand normally prey on such individuals and your kid might end up losing more money in the long run. This is the reason why you should bank accounts that allow parents to set withdrawal limits.
You can also consider banks that allow parents to set debit transaction limits. In fact, some banks normally send parents alerts anytime the kid performs the transaction. Apart from this strategy, you can try to be a joint account holder with your kid. This too can help avert many financial problems in the future.
4. Account Conversions
Since your kid will not remain young forever, your child’s bank account of choice should allow automatic conversion to a regular checking account. You should be keen to check with the bank in order to find out what happens to the account after the maximum age limit.
Will your kid continue using the account even when he or she is in college? Ideally, the conversion process should be as seamless as possible.
5. Branch Locations
Although online banking has proved to be very effective in the recent past, you cannot rule out the importance of the proximity of your nearest bank’s branch from your home. Sometimes, your kid’s account might have issues and calling the customer care team might not be as lucrative as it seems.
It is advisable that he or she visits the bank in order to get assisted. If the bank’s branch is far from your home, your kid might get inconvenienced a great deal.
6. Interest Bearing
Ideally, you should look for a kid’s bank account that bears interest. The more interest your kid’s money earns the better. This can go a long way in enabling your kid to have more money in the long run. To achieve this, you should compare and get the best deal when it comes to interest rates.
Your kid’s money should not lose value over time but rather earn more interest. For optimal result, you should aim for bank accounts offers APYs of 1% or more.
7. Financial Education
As we speak, most kid’s bank accounts come with free financial education components for your young one. Some of the vital resources that might be helpful for your kid include; educational pamphlets and books that can help turn your child’s savings into a fun game.
Generally, these materials are an eye-opener and normally help your kid make better financial decisions. Therefore, you should look for a child bank that offers engaging educational programs for your kid.
8. Good Grade Rewards
Consider credit unions and banks that offer rewards programs for kids, the youth and even student account holders. With these programs, you can be sure that your kid will enjoy cash bonuses from time to time, in case he or she gets good grades in school.
This way, your kid will be motivated to achieve both in school and even save more in his or her bank account.
Benefit Child Bank Account With a Debit Card
If your child has a bank account with a debit card, he or she stands to enjoy several benefits. These include:
1. No Extra Fees Attached
Unlike credit cards that come with annual fees and can make you incur extra charges if you make late payments, debit cards are different as they have few or no fees attached. Therefore, your kid will be able to make transactions using the card without having to pay high fees.
2. Help Your kid to Remain Accountable Whenever he is Spending.
Also known as check cards, debit cards normally convey their function as plastic checks. If you have a debit card, technically, you will be removing money from your bank account anytime that you use it. Therefore, you can only spend the amount of money you have at that particular moment.
As a result, your kid is likely to become more accountable as he or she cannot spend more than he has in his account.
3. Convenience During Purchases
If your kid want to buy something, he or she does not have to carry cash with him or her. If the kid has this card, he can shop anywhere this card is accepted. From hotels to supermarkets, there are many places where you can use this card.
Since one does not need to carry money in bulk, it is more convenient for your kid to have a bank account with this card.
Also, your kid can withdraw cash at his or her nearest ATM. Therefore, if you live near an ATM, he or she can readily withdraw cash or even deposit money to his account with utmost precision.
4. Very Secure
With a debit card, you can be sure that your kid’s money will be safe as no one can access them without the debit card’s PIN. As we speak; modern debit cards normally come with chips that make them safe. In fact, some debit cards also offer security protection whenever one is doing online shopping.
As such, you are the only one who can make purchases with your card.
5. Bank and Merchant Rewards
Currently, some debit cards offer different rewards to different users out there. For any dollar you spend, you stand the chance of getting some rewards. Here you have the opportunity to redeem your points and use them for traveling or for shopping.
Your kid is bound to enjoy all this, thanks to having a bank account with a debit card.
Advantages of Child Bank Account With a Debit Card
If you open a child bank account with debit card, your kid stands to enjoy the following:
- Increased convenience
- Very easy to open. Once you open an account, you will get a debit card upon request.
- Your kid is guaranteed safe transactions.
- Allows your kid to shop in many places out there, even without ready cash.
- Allows your kid to enjoy some rewards once in a while.
- Helps to keep your child more accountable.
The Disadvantage of Child Bank Account With a Debit Card
- At some point, your kid might encounter additional fees if he uses an ATM not affiliated with the bank where he is an account holder.
The 10 Best Child Bank Account With Debit Card – Provides
Since we have looked at some of the benefits of opening a child bank account with debit card, time is ripe for you to know some of the best options that you should consider. They include:
1. Capital One
To start with, Capital One Financial (COF) is a bank account that is geared mainly for the teens. You will note that this account does not attract any additional fees. Also, there is no minimum amount of money that the account should have. Therefore, any amount can be deposited here and you will be good to go.
This account also pays a 0.10% annual percentage yield. Generally, this account is ideal for tech-savvy kids who do not want experience the hassle of branch-based banking. The god new is that parents can tract the account’s activity as they are able to receive texts notification whenever a transaction is made.
2. Chase Bank
If your kid is between 13 and 17 years, this banks account is the best option for him or her. You will release that it offers you an opportunity to track what is happening in your kind’s account from time to time. Besides coming with a full suite of ways to track the account, it also allows mobile banking and online payment of bills.
It is imperative to note that the bank requires you to link an account to the teen’s checking account. The good news is that a fee monthly fee is normally waived for up to 5 years while your child is in college. It also applies if the kid makes one direct deposit into the account every month.
3. Alliant Credit Union
The above-mentioned bank account normally offers both online and mobile access. In addition, it limits how the account holder spends or withdrawals the money. One desirable element with this account is that it offers an APY of 0.25%.
Besides this; your teen will enjoy a refund of up to $20 per month when it comes to ATM fees in case he or she used out-of-network machines. Finally, the account offers a P2P too for mobile payments.
4. Bank of America
You might have heard about this bank in the recent past. Although this bank does not have a checking account for your kid, you will note that your kid will not incur extra charges if he is a student. This means that he or she will save more on costs whenever he or she makes a transaction out there.
5. Union Bank & Trust
Is your teen between the age of 13 and 17 years? The teen Access checking account at the above-mentioned bank is the best option for him or her. However, if you want to open a bank account for your kid with this bank, you need to have $100.
The good news is that you will not be charged any maintenance fee thereafter. With this bank account, you will be able to set daily spending and withdrawal limits on the ATM or debit card that comes with the account. Also, your kid stands to enjoy the benefits of mobile banking services and online banking. This makes it better than it peers out there.
6. Capital One 360 Kinds Saving Account
This is another high-yield saving account that is specifically designed for younger kids. Since there is no deposit or ongoing balance is required, you can be sure that this account is best suited for your kid as it will help him or her save more for future goals.
It also comes with automatic saving plan option which makes it easy for your kid to save money. It is imperative to note that there is no age threshold to open this account. Finally, as a parent you will have the privilege to track fund transfers among other transactions.
7. Citizens Bank
To start with, the above-mentioned bank is a subsidiary of Citizen’s Financial. Fortunately, opening a bank account here comes with no monthly fees until the kid is the age of 25. Besides this, it provides an account experience that can be likened to a joint checking account where you can access online and mobile banking.
Unlike other banks, this bank provides extra tools that help set goals and even track savings for a particular course of action such as the purchase of a car, bike, and so on.
8. Wells Fargo Clear Access Banking
This bank account is ideal for teens that are between the age of 13 and 17 years. Since it does not come with maintenance fees for younger account holders, you can be sure that it is ideal for your kid.
Also, no balance is required in order for the account to remain active. Therefore, your kid can learn how to budget his money, thanks to this bank’s account. That said, it is important to note that this account has no yield and therefore is might not be of much help if you need emergency funds.
Another amazing thing about this account is that just like its peers, parents will be able to get notified in case your kid makes a transaction. Also, it allows you to set limits on your debit card so that you can tame your spending habits.
Since the account comes with money management tools, be sure that your teen will benefit a great deal. Finally, the bank account offers mobile access for fraud monitoring and route banking.
9. Copper Banking
This is actually a teen-friendly banking solution for your teen at home. As long as he or she is between the ages of 13 to 17, the teen will be good to go. Here, your teen will get some teachings on how to make smart financial decisions as there is a platform where parents and teens can connect and learn together.
With the copper debit card, your kid will be able to shop anywhere out there and even withdraw cash for free at over 55000 ATMs. Besides this, there is a Copper app that allows you to monitor the spending habits of your teen.
10. First National Bank and Trust
The above mentioned bank is ideal for kids who are between the age of 16 and 17 years. The good news is that it has no monthly fees. However, it requires you to pay a $25 minimum balance in order to open it.
Unlike their peers, kids can now personalize their bank accounts as the bank offers high school logo checks and debit cards with personalized photos. All these are offered at a small fee. Besides this, your kid will enjoy mobile banking, online access through the bank’s website, and even manage to pay bills seamlessly.
Frequently Asked Questions (FAQ)
Answer: As long as your child is between the age of 11 and 18 years, he or she will be eligible to have a bank account with a card. However, there are some banks that restrict this to kids of 16 years and above. Therefore, it all depends with the bank you choose to open a child bank account with.
Answer: For you to open a child bank account, you should ensure that you have your driver’s license, your Social Security number, your child’s social security number, the birth certificate for your kid and a proof of address.
Answer: Yes. As long as you are listed as the custodian of that bank account you are at liberty to withdraw and use the money the way you please. However, it is imperative that you use the money in a manner in which the kid will benefit.
Answer: Yes. By opening a saving account for your kid early enough, be assured that the money will have adequate time to grow. Generally, the earlier you do it, the better.
Unlike before, modern-day kids have different needs and it is important that you teach them how to manage their money. By opening a bank account for them, you will let them appreciate the culture of savings and being financially responsible. They will be able to set financial goals and aim at achieving them.
Since these bank account come with a debit card, your kid can readily make withdraws with a lot of ease and even do shopping. Consider opening any of the above-mentioned child bank accounts with a debit card and you will not be disappointed. These bank accounts are truly the best.