There are various types of bank accounts, and checking accounts are among them. Others include savings, Money market, and CDs. You can open a checking account with a bank or credit union. Checking accounts come with debit cards that allow you to withdraw money at an ATM, buy goods and services, and send funds to others. You can open a checking account for your home financing needs, school fees payment, etc. Today, I will discuss kids checking account.
Kids too have financial needs such as clothing, school fees, school trips, etc. Therefore, there is a need to get an account to keep the money for their needs. This explains why every parent should open a checking account for their children. You will not struggle to source funds when you need to do something for them. Emergency issues such as diseases and injuries require ready money, and having some in a bank can be helpful.
Another essential thing you should know is that when you open a checking account for your child, you help them start practicing how to manage money. That way, they learn early in advance how to manage money to grow as responsible people. Research shows that when you instill a particular behavior to a child, they grow with that for the rest of their lives.
What is a checking account?
The question; what is a checking account appears in various forums since most people do not understand what they are. A checking bank account is that which allows you to access your funds 24/7. It allows you to keep money that you can access any time of the day for your everyday needs such as buying food, transport, medication, and payment of bills.
You can get the accounts in a bank or credit union. Mostly, you can open and run them online using your mobile phone. As I mentioned earlier, checking accounts have debit cards to allow, you to access funds when in need. You can write and deposit checks, send money, withdraw money, etc.
What do you need to open a kid’s checking account?
A kid has no documents to open an account. Therefore, if you want to open one for your kid, you must provide all the required details. And for your information, if you have poor banking history, you may need to open a second chance checking with no opening deposit if you are lucky, and rectify your poor banking history before you decide to stand in for your child to open an account.
As a parent/guardian, you have to provide details, including the following.
- Social Security Number
- An identification document, e.g., a passport, Government ID card, or Driver’s License
- A secondary form of ID may, e.g., a student ID
- An email address that should be active
- Phone number
- Physical address
- Initial deposit amount
Providing the details above means that you will be responsible for all account activities. When the child grows old enough to get the required documents, you will submit their details to the bank to fully transfer the account ownership to the kid.
After that, they will be fully responsible for any activity they undertake with the account. They can also decide to close the current one and open another checking account that meets their needs. Getting a free online checking account with no opening deposit at various banks and credit unions is easy.
How to open a checking account for your kid?
To open an account for your little one, you can walk to a bank or credit union. Some institutions allow you to open an account online using your phone. You can either download their app or start your application by filling out all the required details and uploading the necessary documents.
When filling out an application form either at a branch or online, you will fill in details like your child’s name, name, Zip Code, City, State, Age of your child, etc. And by the way, most financial companies require you to visit the bank with your child and not alone.
What can one do with a checking account?
There are various things you can do with your checking account. They include the following.
i) Send money
A checking account allows you to send money to others. You can send money with a checking account number instantly to an account within your bank. Again, you can transfer money to an account of another bank, and you are good to go. Checking accounts allow you to send money at a branch or online using the banking app.
ii) Buy goods and services
You can buy commodities and services online and at physical branches. When paying online, you should enter the cards’ number, the expiration date, and the CVV in the fields provided.
At physical stores, you only need to swipe at the register. Some debit cards have cash backs when you use them to purchase goods at certain places, and that way, you save a lot of money in the long run.
iii) Save funds
Usually, we save money in savings accounts. However, some checking accounts allow you to save money when you maintain a minimum balance in your account. They yield a high-interest rate. Saving money is crucial since you may need the funds in the future. No one knows about tomorrow, and thus it is vital to have some money aside.
iv) Withdraw money
It is easy to withdraw money from a checking account over the counter when you present your details such as your identification document, fill in the withdrawal form, and include your signature. You can also withdraw funds from your checking account using your debit card.
And by the way, withdrawing money at an ATM is the best option for your kid since you do not need to be around so long as they understand how to withdraw money.
What Is the Best Checking Account for kids?
I have discussed a lot about children’s checking accounts. I want to show you the checking accounts you can open for your minor.
1) Chase First Banking
The account is available to kids ages 6 to 17. It helps to teach your child the fundamentals of proper management of money. Usually, the account is a debit card with parental controls to regulate how a kid uses it. It helps you control the usage so that your child does not overspend. The monthly service fee is zero.
Also, you get fee-free access to thousands of Chase and affiliated ATMs. You also get a robust suite of educational tools if you are a first-time account holder.
2) Copper Banking
Copper is another children’s account you can open for your account to your kid today. It offers a teen-friendly mobile banking solution for kids aged 13 to 17, plus their parents or guardians. That way, you can help your kid make intelligent decisions about spending money. When you open it, you also get a Copper debit card to withdraw cash when in need for free at over 55,000 ATMs.
You are also able to shop with the card at various places. The minimum deposit is $10, and the funds are insured up to $250,000 through Evolve Bank & Trust; thus, they are safe in case of any collapse. It is one of the best online bank accounts with instant debit cards that you can open today.
3) Axos Bank First Checking
The account is best for children between the ages of 13 and 17. It allows you to customize parental controls easily and allows you to deposit $100 per day and point-of-sale transactions of up to $500 per day.
With those limits, a child cannot overspend if they are left to do transactions on their own. Moreover, it yields 0.10% APY on all balances. It has no monthly maintenance fees, and you can be sure of making huge savings.
4) Alliant Credit Union Free Teen Checking Account
Credit unions also have to check accounts for children, and the Alliant Credit Union Free Teen Checking Account is among the ones that can help you teach your child the best money management skills.
It earns you 0.25% APY on all balances with e-statements. You also get one free direct deposit per month. The account is suitable for kids ages 13 to 17. It has no minimum opening balance, and you can deposit any amount you want.
5) Wells Fargo Clear Access Banking
Wells Fargo is another account you can open for your child. And by the way, like all other kids’ accounts for beginners, Wells Fargo Clear Access Banking is a checking account with no ChexSystems for kids with no records for previous banking. However, if you have poor banking history, you might not be able to stand in for your child as they open the account.
A checking account allows one to access your money anytime you want it. You can open a checking account at a bank or credit union, either online or at a physical branch.
When opening one, you need to provide your details such as Social Security Number, identification document, email address, and phone number. You may also require your child’s student ID during the registration process.