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Tips for Choosing a Teen Bank Account

Byline profile imageWritten by Rebecca Lake, CEPF®
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Byline profile imageEdited by Marie White, CEPF®
Updated on
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Your child’s teen years are a great time to introduce them to the basics of banking and teach them good financial habits. Setting your teenager up with a bank account of their own is an important first step in building smart money management skills. While you could go with a traditional checking or savings, there are plenty of banks offering accounts specifically for middle and high school students. If you are shopping around for a new account, these tips for choosing a teen bank account can help you find the right fit.

A financial advisor can help you create a strong financial plan for you and your family.

1. Know the Rules for Opening an Account

Not all banks offer accounts for teens, and those that do may have specific guidelines regarding who can open an account. Some banks, for example, limit eligibility to teens over a certain age. Others may require one or both parents to act as co-signers on the account or be current bank customers if the teen is under the age of 18. This effectively serves as protection for the bank if your teen overdraws their account.

Beyond the legal rules, parents also need to consider the financial requirements for opening and maintaining a teen account. Depending on the bank, your teen may be able to set up a checking or savings account without any minimum deposit. Also, look at whether there are any ongoing balance requirements for the type of account you are planning to open.

2. Review Each Account’s Fees

Fees can easily eat up your teen’s balance if they are not careful, so it helps to know what kinds of bank fees they may encounter. While minors will not be charged overdraft fees, they could still get hit with minimum balance fees, check fees, debit card fees, statement fees and monthly maintenance fees. Ideally, you should look for a bank that charges as few fees as possible to help keep costs down.

If you are planning on getting your teen a debit or ATM card that is linked to your account, you should make sure they are aware of the associated costs. While they will not be charged a fee for making withdrawals at their bank, they could get hit with fees as high as 3% for using a foreign ATM.

3. Assess the Perks the Bank Offers

A man filling out paperwork for a bank account.

Many banks offer a variety of free services to their customers, so you should find out if any of these perks extend to teen accounts. Things like online bill pay, text alerts and mobile banking services can help make it easier for your child to keep up with their cash any time and any place.

Some banks also offer free financial education resources and budgeting tools for teens which can help them get prepared for managing their own money. 

While it may be more difficult to find, you should also check to see whether any banks in your area offer interest-bearing checking accounts for teens. The rate may be low, but every penny counts, and it can add up over time.

4. Look for Any Extra Incentives

Some banks may offer special incentives just for teens to encourage them to practice good financial and educational habits. For example, some banks like SoFi feature a cash-for-grades program that rewards students for doing well in school. Your teen just has to show the bank a copy of their report card, and the bonus money will be automatically deposited into their account.

If you have an older teen, you may want to look for a bank that specializes in offering car loans for young adults. These programs are designed to make it easier for teens with little or no credit history to qualify for a loan at a reasonable interest rate. 

Depending on the bank, your child may have to take a financial education course as part of the application process, but it’s a good opportunity for them to learn about the responsibility of borrowing money.

Setting Parental Controls and Monitoring Tools

When you set up a teen bank account, you often have the option to give parents access so they can monitor account activity. Many banks provide joint account access, allowing parents to review balances, track spending and receive alerts when purchases are made. This visibility helps parents stay informed and offer timely guidance if needed, especially as teens begin learning how to manage money independently.

Parental controls may also include features such as spending limits, card lock/unlock options and transaction category restrictions. For example, some banks let parents set daily or weekly spending caps or block purchases from certain types of merchants. These tools can support better financial habits by encouraging teens to stick to a budget and avoid impulsive spending.

As teens grow older and demonstrate responsibility, parents can gradually reduce their oversight. Many teen accounts are designed to transition into full adult accounts once the user reaches age 18, allowing parents to step back from account management. Using these monitoring tools during the teen years provides a foundation for financial independence later on.

Bottom Line

Street signs reading "financial rewards."

Choosing a bank account for your teen really is not that different from finding an account for yourself. The most important factors to keep in mind are the account  benefits and any accompanying costs. Once you open an account, you can use it to guide your child through the process of responsible account management so they can get off to a solid start in their financial life.

Work with a financial advisor to make sure your family’s accounts are structured in the best way to benefit your long-term financial goals.

More Banking Tips

  • Whether it’s your bank account or your child’s, the account you choose will have a lasting effect on your long-term financial plan. If you don’t have a financial plan or your want to update your existing one, you could try consulting with a professional. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • If your child is in their teenage years or earlier, check out SmartAsset’s list of the best savings accounts for kids for some great options. Once they reach college age, though, you’ll want to utilize SmartAsset’s list of the best savings accounts for students.

Photo Credit:©iStock.com/keeweeboy, ©iStock.com/Fotolime, © iStock.com/James Brey