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
- 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.
RUNNER-UP: 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.)
- 1The Best Bank for You, 2020We've identified the banks and credit unions that offer the best combination of high rates, low fees and a customer-friendly focus.
- 2Best National Banks, 2020In addition to having more brick-and-mortar locations, big financial institutions offer a variety of perks and services you may not find at smaller banks.
- 3Best Internet Banks, 2020Online banks offer several perks you won't find at brick-and-mortar locations; and in the coronavirus era, their no-touch services might entice more consumers to make the switch.
- 4Best Credit Unions, 2020These member-owned not-for-profit banking institutions are open to the public to join.
- 5Best Banks for High-Net-Worth Families, 2020For customers with substantial deposit amounts and investment accounts, these banks offer perks and services that might help you keep your finances in check.
- 6Best Banks for Retirees, 2020For retirees living on a fixed income, finding a bank that won't nickel-and-dime you with fees and minimum balance requirements is key to helping make your money last.
- 7Best Banks for Parents and Kids, 2020 - currently readingThese financial institutions offer personal banking accounts that the entire family can take advantage of.