How to open a kids’ bank account in 5 steps

Opening a kids’ bank account can help ease your child into the world of financial literacy, teach them healthy money management skills and grow their savings. Kids’ accounts are becoming increasingly popular, too, with about 49% of teens opening bank accounts, according to a recent Fidelity study.

To open an account, you must be at least 18 years old, since a kids’ account involves adding a minor as a joint account holder. Depending on the financial institution or type of account, you might need to visit a branch to complete the application. Here are five steps to get started.

Step 1: Choose the right account

The account you choose will depend on your goals and your child’s age. For example, most kids’ checking accounts require minors to be at least 13 years old, while prepaid debit cards for kids typically don’t have any age limits.

6 types of banks accounts for kids

• 1. Checking

  Designed for everyday expenses, kids’ checking accounts are typically free and have spending and withdrawal limits to avoid splurging. These accounts are often for teens aged 13 to 17 years old.

• 2. Savings

  Kids’ savings accounts are great for any age. You can start building your child’s savings as soon as they’re born.

• 3. Prepaid debit cards

  These kid-centered accounts are known for extra perks, like flexible parental controls, chore and allowance tracking and financial literacy education. They typically don’t come with any age restrictions.

• 4. Custodial accounts

  Made to save for your kids’ future, many custodial accounts, such as UGMA and UTMAs, are controlled by the parent until the child reaches the age of majority. Once they’re an adult, they can access the account and use the funds as they wish.

• 5. Education savings accounts

  529 savings plans and other education savings accounts allow parents to save for a child’s college education, but they can also be used for elementary and secondary school expenses.

• 6. Trust funds

  These accounts allow parents to save up a nest egg for their child. Some trust funds can earn interest and hold stocks, bonds, cash and other assets.

Step 2: Compare fees and transfer options

Depending on the account you choose, cost is a major factor. Some of the more advanced kid bank accounts come with extra features — like investing platforms and chore tracking — require monthly subscription fees, usually around $3 to $10 per month. This can put a dent in your finances if you have more than one kid.

On the plus side, there are free checking accounts for kids under the age of 17. These are often found at traditional banks and credit unions.

Besides monthly fees, look out for these extra costs:

• Account closure fees
• Card replacement fees
• Overdraft or nonsufficient funds fees
• Cash deposit fees
• Out-of-network ATM fees

Another major factor is the ability for you to transfer funds to your child’s account. If your kid doesn’t have any income, you’ll need a way to send them funds so they can actually use the account. Be sure to look into ways you can easily (and cheaply) transfer funds, such as Zelle transfers, ACH transfers or cash deposits.

3. Apply for the account

The way you apply for the kids’ bank account depends on the institution you’re going with. Some banks don’t offer online bank account applications, since an adult needs to be present to set up a child’s account — and that often means you’re required to visit a branch with your child to apply.

If the bank account allows you to apply online, it should take you less than 10 minutes to complete. Make sure you have all your documentation and information ready.

Most kids’ bank accounts will require:

• Your child’s name, birthdate and Social Security Number (SSN)
• Your SSN and government-issued ID, such as a driver’s license or passport
• Residential address, phone number and email address
• Your child’s student ID if you’re opening a student bank account

4. Open and fund the account

In many cases, you’ll need to fund the account during the final stage of the application process. Some accounts require an opening deposit, often ranging from $25 to $100.

Once the account is opened and funded, you can activate your debit or ATM cards, if available. This card usually arrives in the mail seven to 10 days after your application is approved.

5. Set up app and virtual cards

Many kids’ banking services offer virtual cards that can be added to digital wallets for immediate use, such as Apple Pay if your kid is over 13 or Google Pay if your kid is 16 or older.

If you’re banking with an online kids’ bank account, they’re likely to come with an accompanying mobile app. Several of today’s most popular bank accounts offer apps with a multitude of extra features. Your child may use the app to check their balance, play educational games or track their chores. Parents can also use these apps to monitor spending activity, transfer funds or set up spending restrictions.

Which kids’ bank account is best for your kid?

7 things to consider before opening a bank account for your kid

Keep these factors in mind when looking for a bank account for your child.

1. Age account changes. Many banks convert kids’ accounts to standard accounts once the child turns 18, and these adult accounts often have monthly fees.
2. Earns interest. Most kids’ accounts earn a negligible amount of interest, but a few earn competitive APYs.
3. Financial literacy features. Most checking and savings accounts for kids don’t offer financial literacy options. If you’re after an account that teaches your kid how to manage money, look at prepaid cards for kids.
4. Age requirements. Many savings accounts and prepaid debit cards are open to children of any age, but checking accounts are often only available to teens.
5. Monthly fees. Most savings accounts for kids are free to open and maintain, but checking accounts and debit cards commonly have recurring fees.
6. Debit card. Depending on the account type, your child may be eligible to receive a debit or ATM card they can use to spend or access funds in the account.
7. Balance requirements. Kids’ checking accounts may require a minimum balance to keep the account open or avoid monthly charges. Some savings accounts have a similar requirement to start earning interest, but most don’t.

A kid's account might be subject to the kiddie tax.

There can be tax implications for any unearned income, including interest, dividends and capital gains. Once your child's bank account starts earning interest, their investment income is subject to the 'kiddie tax'. Any investment earnings over $2,300 are taxed at the rates that apply to trusts and estates. This kiddie tax applies to investment income of children under 19 years old and full-time college students under the age of 24.

— Bethany Hickey, Writer, Banking and Loans.

Should I open a bank account for my kid?

A kids’ bank account is designed to help kids build their savings and learn healthy money habits. It works similarly to an adult’s bank account, but a parent or guardian must be listed as a joint account owner — giving you more control and oversight on your kids’ spending and saving habits.

Bank accounts for kids are safe as long as you choose an account from an FDIC or NCUA-insured financial institution.

Compare popular online bank accounts for kids

Narrow down top kids’ bank accounts by monthly fees, age requirements and perks. Select Compare on up to four accounts to view them side by side for easier comparison.

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Name	Product	Fee	Age requirements	Features	Offer
Free trial Greenlight Finder Award Finder Rating: 4.6 / 5: ★★★★★ Greenlight Finder Rating: 4.6 / 5: ★★★★★ Finder Award	Free trial	$4.99 per month	Any age	Spend, save & invest Chores & allowance tools Spending controls & limits Instantly send money to your child Up to 5% savings rewards	Get the first 30 days for free. After your one-month trial, plans start at just $4.99/month for the whole family. Includes up to five kids.	Teach your child to spend, save and invest all in one app. Get 5+ financial literacy tools, including chores and allowances. All with powerful parental controls to decide where your child can spend and how much. Includes up to 5% savings rewards. Free one-month trial.	Go to site View details	Compare	loading Fetching your data...
Exclusive GoHenry Finder Rating: 4.3 / 5: ★★★★★ GoHenry Finder Rating: 4.3 / 5: ★★★★★	Exclusive	$4.99 per month	6 to 18 years old	Automate allowance & instantly send money to your child Optional parent-paid savings interest Spending controls & limits Finder-exclusive 2-month free trial	Get an extended 2-month free trial of the GoHenry kids' debit card and app when you sign up with Finder's exclusive code: AFUSS171.	Get interactive money and investing tools for your kids, including expert-developed games and quizzes. Offers strong parental controls that allow you to set where and how much your child can spend.	Go to site View details	Compare	loading Fetching your data...
Free trial BusyKid Finder Rating: 4.6 / 5: ★★★★★ BusyKid Finder Rating: 4.6 / 5: ★★★★★	Free trial	$48 per year or $4 per month	5+	Up to 5 debit cards Chores and allowance tools Real-time notifications of all transactions Optional free investing tools Optional parental savings match	Get 30 days free, then $4/month ($48 billed annually) for up to five kids.	The BusyKid Visa® Prepaid Spend Card gives your kids the freedom to spend anywhere Visa® is accepted, and parents see every transaction made.	Go to site View details	Compare	loading Fetching your data...
Bonus FamZoo Finder Rating: 3.6 / 5: ★★★★★ FamZoo Finder Rating: 3.6 / 5: ★★★★★	Bonus	$5.99 per month	Any age	Parent-paid interest No foreign fees Real-time cash requests	One month free trial. After your one-month trial, plans start at just $5.99/month for the whole family. First 4 prepaid cards free.	Teach your children good money habits with this comprehensive prepaid card and account.	Go to site View details	Compare	loading Fetching your data...
Current teen banking Finder Rating: 4.8 / 5: ★★★★★ Current teen banking Finder Rating: 4.8 / 5: ★★★★★		$0 per month	Any age	Automatic savings round-ups $0 monthly fee Parent Current account required Spending limits and parent notifications Instant transfers to your teen		Current’s Teen Banking card allows parents to track their teens’ chores, allowance, and spending. Requires parent to have a Current account. FDIC insured.	Go to site View details	Compare	loading Fetching your data...
Jassby Finder Rating: 4 / 5: ★★★★★ Jassby Finder Rating: 4 / 5: ★★★★★		$5.95 per month	7 to 17 years old	Set up allowance and chores Real-time spending notifications Instantly lock and unlock your child’s card Quizzes, videos and games teach kids about money Earn redeemable rewards points		Kids earn rewards points when they play the financial literacy games, courses and quizzes in Jassby‘s app. Teach your child spending, saving, and giving with strong parental controls. Includes chores and allowance features.	Go to site View details	Compare	loading Fetching your data...
Axos Bank First Checking Finder Rating: 3.5 / 5: ★★★★★ Axos Bank First Checking Finder Rating: 3.5 / 5: ★★★★★		$0 per month	13 to 17 years old	Up to $12 per month in domestic ATM reimbursements No monthly fee Access to over 91,000 ATMs $0 overdraft or non-sufficient funds fees		Made for teens ages 13 to 17, this account earns 0.1% APY and has no monthly fees.	Go to site View details	Compare	loading Fetching your data...

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Bottom line

Kids’ bank accounts are offered by a wide range of US banks and credit unions. Opening an account with your current financial institution can help save time, but it’s worth shopping around to see which account offers the best rates and features. To find the best fit for you or learn about other kids’ accounts, check out our kids banking guide.