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Choosing the best bank accounts for teens: 5 key features to look for

Having a bank account is a helpful first step in learning basic money management skills. If you have a teenager who’s ready for the responsibility, choosing the right bank account is paramount.

Certain bank accounts are designed with teens in mind. Their special features set them apart from traditional accounts, giving teens a healthy dose of freedom with plenty of guardrails to keep them in check.

Together with your child, research teen bank accounts before choosing one. To narrow your search, look for these five features in the best bank accounts for teens.

A teen bank account, sometimes referred to as a student account, is a bank account designed for the unique financial needs of teenagers. For example, teen bank accounts often come with low or no fees, low minimum balance requirements, and parental controls.

Teen accounts are often a type of joint bank account, with a teenager and parent as co-owners. But older teens — typically ages 18 and up — can usually open an account on their own.

Whether your teen is opening a bank account for the first time or they’re looking for a better fit, keep an eye out for the following features:

Low fees benefit anyone, but teens with limited income will be particularly grateful for this perk. Look for accounts with no monthly maintenance fees, which can eat away at your balance every month.

Also, if your teen wants easy access to cash, finding a bank with a large ATM network or free out-of-network transactions is key. Otherwise, they could be shelling out transaction fees on a regular basis.

Overdraft fees, which are typically around $35, may also be a consideration for teens taking control of their money for the first time. If you think your teen may be prone to spending beyond their available balance, you may want to choose an account with no overdraft fees.

Your teen probably doesn’t have a huge amount of money to deposit into a bank account — in fact, they may have very little. The best teen bank accounts have low minimum balance requirements, providing accessibility to those without much cash.

Better yet, find an account for your teen with no minimum balance or opening deposit requirements. This means they won’t have to worry about depositing or maintaining a certain balance in order to avoid fees or earn interest, which can be tricky without a regular paycheck.

3. Parental controls and monitoring

Depending on your teen, their experience managing money, and your comfort level, parental controls and monitoring may be a priority when it comes to choosing a teen bank account.

Many bank accounts designed with teens in mind incorporate features for parents too. These features may include the ability to:

Set spending and withdrawal limits
Lock or unlock your teen’s debit card
Easily transfer money between your accounts
Set up bank alerts for your teen’s account
View your teen’s transaction history

Features like these allow you to be as involved as you want in your teen’s finances. This flexibility can be beneficial if you want to have more supervision up front and loosen the reins as your teen gets older.

A debit card is a convenient checking account feature, allowing you to easily make purchases online and in person. Chances are, your teen could benefit from a debit card too.

Look for teen accounts that come with a free debit card. Showing your teen how a debit card works can help them build financial habits they’ll use as adults. Plus, it gives you a chance to teach them how to keep their account safe and in good standing. For example, you can teach them how to avoid debit card fraud and how to make sure they don’t overdraft their account.

Another bonus of teen bank accounts that come with debit cards is the ease of tracking purchases. If your teen is used to spending cash, it can be hard for either of you to track their spending. Having a debit card can make it easier for your teen to see where their money is going each month and learn the basics of how to budget.

Chances are, your teen spends a lot of time online. They may even be more comfortable navigating new tech and apps than you are. If your teen is most likely to bank from their phone, it makes sense to choose a bank account that has a capable and user-friendly mobile app.

When comparing teen bank accounts, look for banks with well-rated mobile apps. You can use the Apple App Store and Google Play to check ratings. You may also want to ask your teen what app features they’re interested in. For example, if they want the ability to set and work toward savings goals, look for a bank with an app that offers a savings tool.

See our picks for the 10 best mobile banking apps>>

A 16-year-old could benefit from a bank account, especially one designed for teens that includes helpful features. For example, if your 16-year-old loves to spend but struggles with saving, an account with parental spending controls may be a good fit. With the right guardrails in place, a bank account can help your 16-year-old build good financial habits.

The best bank account for students under 18 depends on your (and your teen’s) priorities. Some teens may benefit from a more hands-on approach, in which case an account with plenty of parental controls may be best. Others may be ready for more independence and prefer an account with robust budgeting and educational features. Regardless, low fees and minimums, a solid mobile app, and a free debit card are always beneficial in a student account.

Typically, you need an adult co-owner to open a bank account if you’re under 18. Depending on the bank, you may be able to open a teen account online, but other banks may require an in-person visit. Regardless, the teen and adult will both need to provide basic personal information and documentation, such as proof of address, a valid ID, and a Social Security number. Depending on the account requirements, you may also need cash or an external bank account to make an initial deposit.

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