Best Banks for Parents With Kids

Kids learn the ropes of banking with dedicated checking and savings accounts from these online banks, and parents have impressive options for their own needs, too.

teen worker in juice bar
(Image credit: Getty Images)

Best: Capital One 360 (opens in new tab)

Why it won: Free, no-minimum accounts for both parents and children as well as robust digital tools make Capital One a desirable choice for families.

Standout accounts: Money Teen Checking, for ages 8 to 17, is free and includes parental controls. The free 360 Performance Savings account yields 0.4%.

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Where it is: The accounts described here are internet-based, but Capital One offers in-person service at nearly 350 branches in eight eastern and southern states and Washington, D.C.

Capital One’s online Money Teen Checking account is free of minimum deposit or balance requirements and monthly fees, yields 0.1%, and comes with parental controls for you to keep tabs. Parents can send automatic or one-time transfers into the account, remove money from it, see transactions, and receive notifications of account activity through e-mail, text messages or Capital One’s mobile app. Kids can make up to $500 in cash withdrawals and purchases per day with the debit card (you can lower the cap if you wish), and card transactions are barred at certain establishments—such as liquor stores, bars and online prescription drugstores. If your child tries to make a debit card purchase that would overdraw the account, it will generally be rejected. Check-writing is not included. Kids can also check the account balance, set savings goals, deposit checks and receive activity alerts. With the free Kids Savings Account (0.3% yield), children can make deposits, check account balances and set savings goals, but transferring money requires parental help.

For parents, the 360 Checking account yields 0.1%, offers overdraft transfers and the first box of checks free, and, like the teen checking account, provides no-fee access to 70,000 ATMs. Direct-deposited funds are accessible up to two days early. (You can also link a checking account from another institution to your kid’s Capital One account. )

Runner-up: Axos Bank (opens in new tab)

Why it won: Axos offers a special checking account for teens and an array of solid accounts for parents.

Standout account: First Checking, for ages 13 to 17.

The no-fee, no-minimum First Checking account ($50 opening deposit) gets teens off to a sound start with banking, offering a 0.1% rate, up to $12 monthly in ATM fee refunds, and no overdraft or insufficient-funds fees. Daily transaction limits are $100 for cash withdrawals and $500 for debit-card purchases. Debit card transactions at certain places, including bars, liquor stores and gambling establishments, are blocked. The account does not include check-writing. When you apply for a First Checking account, the free First Savings account is offered as an option, too; it yields 0.25%, provides an ATM card ($100 daily withdrawal limit) and reimburses $12 in ATM fees monthly. An adult must co-own the teen checking and savings accounts, and parents have a number of attractive checking accounts to choose from, too—for more, see Best Internet Banks.

Lisa Gerstner
Contributing Editor, Kiplinger's Personal Finance

Lisa has spent more than15 years with Kiplinger’s Personal Finance and heads up the magazine’s annual rankings of the best banks, best rewards credit cards, and financial-services firms with the best customer service. She reports on a variety of other topics, too, from retirement to health care to money concerns for millennials. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.