banking

Best Banks for Parents and Kids, 2020

These financial institutions offer personal banking accounts that the entire family can take advantage of.

These banks offer dedicated accounts for children and teens, plus a host of great accounts for parents, too. 

BEST: Capital One 360

Courtesy of Capital One

  • Why it won: Parents and their children both benefit from an appealing selection of no-fee, no-minimum accounts. 
  • Standout accounts: The free Money Teen Checking account has friendly features for kids age 8 to 17, and the free Kids Savings account offers a 0.5% yield. 
  • Where it is: Accounts are internet-based, but for in-person service, Capital One has more than 450 branches in eight eastern and southern states, plus Washington, D.C. 

The Money Teen Checking account yields 0.1% and offers free access to more than 39,000 ATMs in the Capital One and Allpoint networks. Your kid gets a debit card (check-writing is unavailable), but as a joint owner, you can manage the account and receive alerts for each transaction. Your teen can also check the account balance, deposit checks and set up savings goals. Overdraft services aren't available, so if your child tries to make a debit card purchase with nonsufficient funds, it will generally be rejected (if a transaction causing the account to go negative does make it through, Capital One won't charge interest or a fee). With the Kids Savings Account, children younger than 18 can deposit checks, set savings goals and monitor account balances. 

For parents, 360 Checking yields 0.1% and provides free access to tens of thousands of ATMs. The 360 Performance Savings account yields 1% on any balance—and if you'd like your child to earn a higher interest rate than with Kids Savings, you can own the Performance account jointly with him or her. The no-minimum 360 CDs recently yielded 0.5% for a one-year term and 1% for a five-year term.

LICENSING OPTIONS FOR WINNING BANKS: Logo LicensingReprint/E-Print ProductsPlaques

RUNNER-UP: Axos Bank

Courtesy of Axos Bank

  • Why it won: Axos, an internet bank, has a checking account for teens, and parents can choose from a range of no-fee accounts. 
  • Standout account: First Checking, for teens age 13 to 17. 

If you have a teen younger than 18, you can open and manage the free First Checking account jointly with your kid with a deposit of $50 (no ongoing minimum). It yields 0.25% and offers up to $12 in out-of-network ATM fee reimbursements per month. First Checking has other features well suited to this age group: no overdraft fees (overdrafts will be declined, or money can be transferred free from a linked savings account); daily transactions limited to $100 for cash withdrawals and $500 for debit card purchases; and blacklisted purchases for teens with certain types of merchants—including bars, liquor stores and gambling establishments. Check-writing isn't available. (See more on Axos in the bronze medalist entry in the Best Internet Banks round-up.)

LICENSING OPTIONS FOR WINNING BANKS: Logo LicensingReprint/E-Print ProductsPlaques

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 12 Best Tech Stocks to Buy for 2022
tech stocks

The 12 Best Tech Stocks to Buy for 2022

The best tech-sector picks for the year to come include plays on some of the most exciting emergent technologies, as well as several old-guard mega-ca…
January 3, 2022
How to Know When You Can Retire
retirement

How to Know When You Can Retire

You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually …
January 5, 2022

Recommended

Low Interest Rates Got You Down? How to Boost Your Returns on Cash Savings
banking

Low Interest Rates Got You Down? How to Boost Your Returns on Cash Savings

If you’ve got a lot of money sitting in cash, it could be worth looking into using a cash management system to find a better rate of return. Let it do…
December 22, 2021
Kiplinger’s Best Firms for Customer Service: Banks, Credit Cards and More
banking

Kiplinger’s Best Firms for Customer Service: Banks, Credit Cards and More

We evaluated major banks, credit card issuers, mortgage lenders, and home and auto insurers to see how well they treat their clients.
December 21, 2021
How to Nix Checking Fees
Making Your Money Last

How to Nix Checking Fees

Strictly free accounts aren’t the only way to bank - almost all banks and credit unions offer ways around paying fees.
December 20, 2021
Banking at the Post Office May Be Making a Comeback
Making Your Money Last

Banking at the Post Office May Be Making a Comeback

Advocates say the Postal Service can provide access to an essential financial system while bolstering its own economic position.
December 20, 2021