Kid’s Bank Account 101: What You Need to Know

A kid’s bank account is a beautiful way to teach your youngster about finances and careful spending. However, with so many alternatives available, choosing the proper bank account for your child may be difficult. You should understand certain things about children’s bank accounts.

How Do I Open a Bank Account For My Kid?

The first thing you need to do is find a bank or credit union that offers accounts for kids. Some banks may require that your child have a Social Security number to open an account, so it’s essential to check with the financial institution ahead. Once you’ve found the right bank, you can typically open an account online, over the phone, or in person.

What Are the Benefits of a Kids Bank Account?

One of the primary benefits of having a bank account for your child is that it can help them learn how to save money. Many kids’ accounts offer interest on deposited funds, encouraging your child to keep money in their account rather than spending it all at once. Additionally, most banks offer online and mobile banking platforms that allow kids (with parental supervision) to check their account balances, make transfers and even pay bills. This can help them develop responsible financial habits that they can carry into adulthood.

What Should I Look For in a Kids Bank Account?

When you’re looking for a bank account for your child, it’s essential to consider the following factors:

– Interest rates: Although many kids’ accounts offer interest, the rate may be lower than what you’d earn on an adult account. Compare interest rates from multiple banks to find the best deal.

– Minimum balance requirements: Some banks require a minimum balance to avoid fees. If your child is likely to keep only a small amount of money in their account, look for a bank that doesn’t have minimum balance requirements.

– FDIC insurance: All banks insured by the Federal Deposit Insurance Corporation (FDIC) are backed by the full faith and credit of the US government, meaning your child’s deposited funds are safe in the event of a bank failure.

– Fees: Many kids’ accounts have no monthly service fees, but some may charge for things like ATM withdrawals or incoming wire transfers. Be sure to read the account’s fee schedule carefully before signing up.

Minimum Balance

Most banks don’t require a minimum balance for children’s accounts, but some do. Also, some banks charge a monthly maintenance fee regardless of the account balance. Furthermore, ATM use with a kid’s bank account usually has no monthly fees. However, there may be per-transaction charges when using an out-of-network ATM. Certain banks will also reimburse you for these charges if you maintain a certain account balance.

Interest Rates

When looking at interest rates, it’s essential to realize that many kids’ bank accounts have very low rates. Some don’t accrue any interest at all. If you’re looking for an account to help your child save money over time, find one with a competitive interest rate.

Ease of Use

You’ll want to find a bank account that’s easy for your child to use. Many banks offer online and mobile banking platforms that allow kids (with parental supervision) to check their account balances, make transfers and even pay bills. This can help them develop responsible financial habits that they can carry with them into adulthood.

Credit Cards For Kids

Most banks don’t offer credit cards to children under 18. However, a few options are available for kids who want to build credit. One option is to have your child become an authorized user of your credit card account. This means they’ll be able to use your credit card but won’t be legally responsible for the debt. Make sure to choose the top debit cards for kids. Another option is to get a secured credit card, which requires a deposit that acts as collateral for the credit limit. Secured cards can help children build credit without incurring debt. Finally, some banks offer student credit cards, which often have low credit limits and competitive interest rates.

What’s the best way to help my child save money?

One of the best ways to help your child save money is to match their deposits. For example, if they deposit $20 into their account, you could match it with an additional $20. This will encourage them to keep saving while helping them grow their account balance more quickly. Another option is to set up a savings goal for your child and help them track their progress. This can be done online or with a physical piggy bank. Finally, teach your child the importance of budgeting and responsible spending. This will help them make wise financial decisions now and in the future.


Alex is a small business blogger with a focus on entrepreneurship and growth. With over 5 years of experience covering the startup and small business landscape, Alex has a reputation for being a knowledgeable, approachable and entrepreneurial-minded blogger. He has a keen understanding of the challenges and opportunities facing small business owners, and is able to provide actionable advice and strategies for success. Alex has interviewed successful entrepreneurs, and covered major small business events such as the Small Business Expo and the Inc. 500|5000 conference. He is also a successful entrepreneur himself, having started and grown several small businesses in different industries.