Teaching your child about money is an important part of being a parent. A kids' bank account can provide your child with opportunities for hands-on practice where financial responsibility is concerned, and could go a long way toward setting your child up for future financial success. A study by researchers at the University of Michigan found that low- and moderate-income children with savings accounts containing even modest balances (e.g., less than $500) were over four times more likely to graduate from college.  

Here’s what you need to know about how to open a kids' bank account, including the features you should look for in a checking or savings account for your child before you apply. You’ll also learn how to prepare to apply for your child’s first bank account and some tips on how to manage and monitor the account once it’s open and active. 

1. Account Type: Checking or Savings? 

When you decide to open a bank account for your child, two of the most popular options to consider are ♐checking accounts and savings accounts. 

• Savings accounts: Children may be ready to benefit from a kids' savings account at a young age, once they express an interest in shopping, saving, or any other money-related activities. A savings account may also be a way to get them interested in money.
• Checking accounts: Checking accounts are often better suited for older children who are ready for more financial responsibility, like debit card management, writing checks, and managing a basic budget.  

Regardless of the type of account you choose, you’ll likely need to open a joint bank account with your child as long as they’re still a minor. A few states let minors open savings accounts on the🥂ir own. However, many financial institutions require a responsible adult to co-open deposit accounts with children, even though federal law doesn’t place specific age restrictions on how old a person must be to open a savings or checking account. 

2. Compare Banks and Bank Accounts

Once you figure out the right type of deposit account for your child, it’s time to start comparing your options. Different 澳洲幸运5官方开奖结果体彩网:banks and credit unions offer a variety of be🥃nefits and perks where their kids’ bank accounts are concerned. And while there’s no such thing as a꧑ “perfect” bank account for your child, you can search for a deposit account that’s best suited to your child’s needs. 

What to Look For in a Checking Account

Below are some key features to look for when opening a child’s checkiಞng account.

• Age restrictions: It’s common for financial institutions to place age restrictions on children’s checking accounts. You must be 13 to 17 years old to open a Chase High School Checking account, for example. U.S. Bank’s Smartly Checking account is open to anyone, but you’ll get a monthly fee waiver if you open a joint account with a youth of 13 to 17 years old.
• Fees: You don’t want your child to waste a chunk of their money each month on bank fees. So, be on the lookout for financial institutions that offer free checking accounts (in terms of no monthly fees) and limit other fees as well. 
• ATM benefits: Certain banks and credit unions may offer larger ATM networks, low (or no) ATM fees, and ATM fee reimbursement. These benefits could be meaningful if your child may need access to cash on a regular basis. 
• Interest rates: Checking accounts aren’t known for offering the highest interest rates available on deposit accounts. Yet some financial institutions are more generous than others when it comes to the annual percentage yields (APYs) they pay their customers. It may be worth shopping around to find an account with a decent APY, but this shouldn’t be much of a concern when it comes to checking accounts.

What to Look For in a Savings Account

Here are several key benef🌼its you may want to search for as you look for the be❀st savings account for your child. 

• Age requirements: Banks and credit unions are often more lenient when it comes to age restrictions for kids' savings accounts compared to kids' checking accounts. You might even be able to open a savings account for an infant. Nonetheless, be sure to confirm age requirements with any financial institution you’re considering.
• High APY: Finding a bank that offers an attractive APY could help your child’s savings grow at a faster rate. Seeing their money grow could help your child get excited about 澳洲幸运5官方开奖结果体彩网:saving money at a young age. 
• Easy access to funds: Avoid banking with a financial institution that makes it difficult for your child to access their cash when they want to spend their savings. A bank or credit union with too many or too strict withdrawal restrictions could frustrate both you and your child. 
• Minimum balance requirements: Pay attention to 澳洲幸运5官方开奖结果体彩网:minimum balance requirements when you open a kids' savings account. Does your child need to maintain a certain balance to avoid a monthly maintenance fee, keep their account open, or earn interest? If so, make sure these balance requirements are child-sized. 

3. Prepare to Apply

After you narrow down your♛ top choice, it’s ti⛦me to prepare for your application. When you gather the details you need in advance, the application process for a new account will go much smoother. 

Here are some of the documents and information you might need to provide on your application for a kids' bank account. 

• Identification documents for you and your child: Acceptable forms of ID may include a driver’s license, state ID card, passport, etc. Some financial institutions might require a secondary form of identification as well, like a student ID or major credit card. 
• Minimum deposit: If the financial institution requires a 澳洲幸运5官方开奖结果体彩网:minimum deposit to open a kids' savings or checking account, you’ll need to prepare at least this amount to submit along with or shortly after your application. 
• Proof of address: A utility bill or financial statement may be able to fulfill this requirement.

Best Checking Accounts for Kids

*APYs are accurate as of publication.

Best Savings Accounts for Kids

澳洲幸运5官方开奖结果体彩网: *APYs are accurate as of publication.

4. Apply for the Bank Account

Depending on the financial institution you choose for your child’s first♔ savings or checking account, the process of applying for a new bank account may vary. With online banks and credit unions, for example, you’ll probably need to fill out an application on your 🦩computer or mobile device and upload any necessary documents. 

Financial institutions that offer both in-person branches and online banking may let you apply online or make an appointment to open a kids' bank account at a local branch. Meanwhile, smaller local banks and credit unions may only offer the option to open bank accounts in person. 

5. Fund the Bank Account

Next you’ll want to add cash to your child’s savings or checking account. If you open the new account in person, it’s easy to deposit cash or a check while you’re at the bank or credit union. However, if you open a kids' bank account online, funding the account might be a different process. 

With online bank accounts, you canไ often deposit money in one of the following ways (depending on the term🍰s of the account). 

• Make a mobile deposit (check or money order) into the new account. 
• Deposit cash at an in-network ATM (if allowed). 
• Transfer funds from another bank account.

6. Activate the Debit or ATM Card

If you opted to open a kids' checking account, the account is likely to come with a debit card your child can use to pay for purchases and withdraw cash from their acꦅcount. (Note: Mos🌱t savings accounts don’t feature debit cards, but those accounts often include ATM cards instead.)

Once your child receives their debit or ATM card🐻, you’ll need to activate it. Again, it can be fun and educational to involve your child in this process. Your child may also need to set up a PIN that they can use to withdraw cash from their account.  

7. Manage and Monitor the Account

Depending on the financial institution, you may be able to set limits to manage how your child ca𝓀n use their new checking or savings account. Most of these features, if they’re available, should be accessible in the account’s online or mobil🐻e app settings. 

Some kids' checking accounts, for example, allow the joint account holder to limit transaction amounts on debit cards and set up account alerts. These restrictions aim to encourage responsible spending. Other accounts may let you set up permission requirements before your child can withdraw funds, make debit card purchases, or send funds from their account.