Our pick for a kids debit card: Greenlight
- Allowance payouts
- Usage notifications
- Parent-paid interest
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A kids bank account helps build savings and teach your child healthy money habits. But not all accounts will give your child the freedom of managing their money alone. Most bank accounts for kids, like checking and savings accounts, require parents to open it as a joint account.
Savings accounts are a good option if you want to start saving for your baby or if your child isn’t ready to start learning how to manage their own account. But if you want your child to learn the value of saving, spending and giving, consider opening a prepaid debit card for kids. These accounts let you monitor and control your kids’ progress as they develop healthy money habits.
Compare top-rated prepaid cards for kids by fees and features. Or, click to the savings account tab and enter your deposit amounts into the table to see how much interest you could rack up with each savings account for your child.
There are six different types of kids bank accounts you could open for your little one. But the right one for you depends on your child’s age, their financial maturity level and how you want them to use the funds. This table can help you decide which kids bank account you should go with:
|Type of account||Best for||Earns interest||Common features||Popular accounts|
|Education savings account||Parents who want to start saving for their child’s education.|
|Custodial or UGMA/UTMA account||Adults who want to gift their child money that can’t be touched until they turn 18.||Usually|
|Trust funds||Parents who want to leave a financial legacy behind for their kids. Contrary to popular belief, trust funds aren’t just for the ultra-wealthy.||Depends on the account|
|Joint checking accounts||Kids who are ready to start spending money with a debit card.||Depends on the account|
|Savings accounts||Kids who are ready to have joint access to their savings.|
|Prepaid debit cards||Parents who want an interactive way for their kids to learn healthy financial habits.||No, but some allow you to set up parent-paid interest.||Parents can:|
|Kids virtual bank accounts||Kids who want to learn healthy financial habits but aren’t ready to graduate to an actual bank account.||No|
You should open a kids bank account for your child when it’s right for you and your family. If you decide to open a bank account for your child, you might want to start with a savings account. Depending on your child’s age, they might not need a checking account. But once your child grows older, you might want to consider graduating them into a kids prepaid debit card. These cards are created to teach kids how to manage their money.
A kids bank account is designed to help kids build their savings, learn about money and encourage them to save. One major perk of a kids bank account is that it typically has low to no monthly maintenance fees and no opening deposit minimums.
From opening an account for your newborn baby to saving for college, explore various kids banking topics below.
Before you head to the bank and open an account for your kid, learn about the documentation you need to have and how this account could affect you come tax time.
Opening a bank account in your child’s name can be a great way to save for future educational expenses and teach your child good money habits. But not all banks and credit unions allow you to open an account for a baby. Find out which ones you qualify for here.
Education savings accounts, also known as 529 plans, are set up to save for your child’s future education. The funds from these accounts are used to cover educational expenses, such as elementary or secondary school expenses or college tuition. The number one perk of these savings accounts is that the earnings from the investment as well as any withdrawals from the account are not taxable for federal income tax purposes.
Teens can open savings accounts at most banks and credit unions, which can come in handy when they get their first job. Compare top-rated accounts for teens and find out how they compare to prepaid cards and traditional bank accounts.
College gets more expensive every year. The earlier you save, the greater the chance you have to combat student debt in the future. Uncover the average cost of tuition, fees and room and board. Then learn how to create a savings plan that helps your money go further.
There are a host of financial literacy programs available for children in the United States. These programs are designed to educate and engage your child in money-related topics such as saving and budgeting. In addition, each bank offers different rewards and incentives that may be worth considering when looking for a bank account to open for your child.
|Program name||Best for||Features|
|Hands on Banking program||K–12||This program provides free resources for teachers who are looking to add financial lessons in their curriculum. Lesson plans include topics on:|
|School Savings program||K–12||This program, approved by the US Department of Education, allows kids to make savings deposits at school through Websaver and features:|
|Fifth Third Bank Young Bankers Club||Fifth graders||This is a 5- or 10-week program taught inside the classroom. Kids learn how to:|
|TD Bank WOW!Zone||K–12||This program provides financial literacy lesson plans to teachers:|
|Teach Children to Save Day||K–8||This annual event is put on every April by bank volunteers who teach kids how to:|
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