How to Choose the Best Bank Account for Kids

In an age where financial literacy is more important than ever, teaching kids how to manage money is a valuable life lesson. One of the best ways to start is by opening a bank account for them. However, not all bank accounts are created equal. Choosing the best bank account for kids involves careful consideration of features, fees, accessibility, and financial education tools. In this article, we will guide you on how to choose the best bank account for kids, so you can make an informed decision that benefits your child’s financial future.

Why Kids Need a Bank Account

Before diving into how to choose the best bank account for kids, it’s essential to understand why having a bank account matters for children. A bank account can teach children the value of saving, budgeting, and setting financial goals. It also helps build a foundation of trust in financial institutions and encourages responsible money habits from a young age.

Benefits of Opening a Bank Account for Kids:

Encourages saving habits
Teaches money management skills
Provides hands-on financial education
Offers parental oversight and control
Builds a sense of responsibility

Types of Bank Accounts for Kids

When learning how to choose the best bank account for kids, it’s important to distinguish between the types of accounts available. Generally, there are two main types:

1. Youth Savings Accounts

Youth savings accounts are designed to help kids save money. They often have lower fees, no minimum balance, and higher interest rates than regular accounts.

2. Joint Checking Accounts (with Parents)

A joint checking account allows kids to learn how to use debit cards and manage money with parental guidance. These accounts are often used for teenagers who may have part-time jobs or receive allowances.

What to Look for in a Kids’ Bank Account

Here are the key factors to consider when evaluating how to choose the best bank account for kids:

1. Age Eligibility

Different banks have different age requirements. Some accounts are for kids under 13, while others are for teens aged 13–17. Choose an account that fits your child’s age group.

2. Parental Controls and Access

Parental access is crucial when learning how to choose the best bank account for kids. Look for accounts that allow parents to monitor transactions, set limits, and receive alerts.

3. No or Low Fees

Avoid accounts with monthly maintenance fees, overdraft charges, or high minimum balance requirements. Many banks offer free accounts for minors.

4. Interest Rates

Although interest rates for kids’ accounts are generally low, some banks offer competitive rates to encourage saving. A high-interest savings account can motivate your child to save more.

5. Online and Mobile Access

Kids are tech-savvy, so choosing an account with a user-friendly app or online access is important. This feature helps children track their spending and saving in real time.

6. Educational Tools

Some banks provide interactive tools, games, and resources to teach kids financial concepts. These can enhance your child’s understanding of money.

7. ATM Access and Debit Cards

If your child is old enough, having a debit card can help them learn how to manage spending. Make sure there are ATM options nearby and that cards are secure and manageable.

8. FDIC or NCUA Insurance

Always ensure the account is insured by the FDIC (for banks) or NCUA (for credit unions). This guarantees that the money is safe up to the legal limit.

Best Banks That Offer Kids’ Accounts

While this guide is primarily about how to choose the best bank account for kids, it helps to be aware of some reputable banks that offer quality kids' accounts:

Capital One MONEY Teen Checking – No fees, mobile app, debit card, parental control.
Chase First Banking – Designed for kids aged 6–17; linked to a parent’s account.
Alliant Credit Union Kids Savings Account – High interest rates and no monthly fees.
Bank of America Advantage SafeBalance – Ideal for older teens; limited overdraft features.
Wells Fargo Clear Access Banking – Best for ages 13–17 with parental co-ownership.

Always compare the features and limitations of each bank before opening an account.

How to Open a Bank Account for Kids

Opening a bank account for your child is usually a simple process. Here’s how to get started:

Step 1: Gather Required Documents

You’ll typically need:

Your child’s birth certificate or school ID
Your government-issued ID (driver’s license or passport)
Social Security numbers for both parent and child
Proof of address

Step 2: Choose the Right Account

Use the criteria mentioned above to evaluate options. Whether you’re looking for savings or checking, ensure it meets your child’s age, financial literacy, and goals.

Step 3: Visit a Branch or Apply Online

Some banks allow online account creation, while others require a visit to a local branch. Confirm requirements beforehand.

Step 4: Fund the Account

Deposit an initial amount to activate the account. Some banks have no minimum deposit requirements.

Step 5: Educate Your Child

Teach your child how the account works. Show them how to use mobile banking, check balances, and understand interest and fees.

Teaching Financial Responsibility

Opening the account is only the beginning. If you're serious about how to choose the best bank account for kids, you must also commit to teaching ongoing financial habits:

1. Set Savings Goals

Help your child create goals—like saving for a new toy, a bike, or even college. This provides motivation and structure.

2. Teach Budgeting Basics

Explain how to budget money from allowance or gifts. Encourage tracking expenses and allocating funds for savings, spending, and sharing.

3. Review Account Activity Together

Make it a weekly or monthly habit to review the account together. This encourages transparency and learning from mistakes.

4. Introduce Compound Interest

Teach your child how money grows over time with interest. Use visual aids and calculators to demonstrate compound interest effects.

5. Encourage Giving

Teach your child about donating a portion of their money to charity. This builds empathy and social responsibility.

Red Flags to Avoid

In your journey of how to choose the best bank account for kids, avoid accounts that have:

Hidden fees or service charges
Limited parental access
No educational resources
Poor customer service
No online/mobile features

FAQs on How to Choose the Best Bank Account for Kids

At what age can a child open a bank account?

Most banks allow accounts for kids as young as birth (with a parent as co-owner), but checking accounts usually start at age 13.

Can kids get a debit card?

Yes, many teen accounts offer debit cards with parental controls.

Is it better to choose a credit union or a bank?

Credit unions often offer better interest rates and fewer fees, but banks may provide more tech-friendly tools and broader access.

Can grandparents open accounts for their grandchildren?

Yes, with appropriate documentation and often with the parent’s consent.

Final Thoughts

Learning how to choose the best bank account for kids is an important step in raising financially responsible children. The right account will not only keep your child’s money safe but also teach them vital skills they’ll use for a lifetime.

Look for an account that’s easy to use, fee-free, and educational. Always involve your child in the process to make the learning experience engaging and empowering. As your child grows, so will their financial knowledge—and it all starts with the right bank account.