What is the Best Bank for Kids?

The Problem

As the oldest of my 5 kids became teenagers, I knew we needed to find a better way for them to save money than to keep it in a stash at the house. We'd had kids savings accounts, but those required a trip to the bank to get money out or put it in, so we never really used them. I had become my kid's bank, and I wanted to give up the job. What was I looking for? I wanted an account that:

  • Won't charge a fee, even if they don't have much money in the account.
  • Lets parents transfer money in and out of the account easily online.
  • Allows kids to see money in their account.
  • Gives kids a debit card so they can make purchases.

How Much Do You Know About Kids and Money?

Kids Banking at Capital One 360 has helped me keep track of money for chores and birthday presents my kids get from grandma.
Kids Banking at Capital One 360 has helped me keep track of money for chores and birthday presents my kids get from grandma. | Source

A Solution

After trying several local savings and loans and finding that it was always hard to use or deposit money, I finally got an offer from my online bank, Capital One 360 about their Kids Savings Accounts and Teen Checking Accounts which matched my needs. We've used these now for about six years and they have been great. Why?


  • Easy to use.
  • Keeps money safe.
  • Teaches kids how to save.
  • Gives a debit card for kids to use
  • Parents and kids can both monitor the account.
  • After 18, they can transition to a personal adult account also keep a joint account for parents to add money into as needed for college.


Having both a savings and a checking account helps teach kids how to use their money wisely. Just like in adult accounts, the Savings account earns a bit more interest so they have an incentive to save rather than spend.


Is Capital 360 a Safe for Kids?

One way to teach good banking with your kids is to explain to them how to choose a bank. For your money to be safe, the bank should be:

  • FDIC Insured
  • A federally chartered Bank.

Look for these things on the Capital 360 website, or search online to find out more about this bank. Here is what we found:

  • Capital 360 is an all online bank, started in 2000 and headquartered in Delaware.
  • It is the largest direct bank in the U.S.
  • It is a federally charted bank insured by the FDIC, which deposits insured up to $250,00 per person.

Benefits of Teen Banking

Teens can save up for bigger purchases.
Teens can save up for bigger purchases. | Source

Bank for Kids Poll

Where do your kids currently keep their money?

See results without voting

Savings

Designed to help kids save money and learn about how banking and interest works, the Capital 360 Savings account is good if you just want a place for your kids to keep the money they earn, or to save up money for grandparent gifts. I wish I'd had something like this when my father was giving a monthly check for my kids because it would have been easy for him to deposit the money directly into their accounts. Kids can have a Capital 360 Kids Savings Account for saving up for something big while putting the money they want to use their Debit Card account.

Features of the Account

  • No minimum account balance, which means kids can start it right away and you don't have to worry if they want to spend some.
  • No fees on the account.
  • Interest on an account. It isn't much, but it is better than what I get on some of my adult savings accounts currently.
  • FDIC insured (which lets you talk about what this is and why it is important).
  • Adults are in charge of all deposits and withdrawals, which keeps the money safe.

What Can Kids Do?

  • See their balance online 24/7
  • Change their personal info, PIN, and account nickname.
  • Learn how to keep their money safe by creating a personal "Saver ID"
  • Download and print out all their account information.
  • Retrieve a forgotten password or Customer Number using online tools.
  • Use the online game which teaches them about saving money and banking.

What Can Adults Do?

  • Everything that the kids can do.
  • Adults have control over the account.
  • Transfer and withdraw money.
  • Create an automatic savings plan for allowance or other savings needs.
  • Adult does not have to be a parent. They do have to be a U.S. citizen or permanent resident who has a Social Security number. Anyone over 18 can create an account for someone under 18. It can be created by an aunt, uncle, grandparent or anyone who wants to help a child start learning how to use a bank and save.

What do you Need to Open an Account?

  • Personal information about the adult which includes a Social Security number.
  • A checking account which you can use to transfer money from to the account.
  • You will need to verify you own that checking account by confirming one or two small deposits Capital 360 makes into the account.

What Else do You Need to Know about this Kids Banking Account?

  • You can't withdraw funds from the account until the link is validated. New accounts can't be withdrawn for 10 banking days.
  • Up to 3 personal checking accounts can be linked to one Kids Savings account, which means that parents and grandparents or other relatives can all add or withdraw money easily online.
  • If you have any trouble with the account. You can call 1-888-ING-0727 from 8AM to 8 PM any day of the week for help.

MONEY Teen Checking Account

This account has made managing money for my kids so much easier. The MONEY Teen Checking account mimics an adult checking account except that there are no paper checks, only a debit card. Although it is called a Teen account, there is no age minimum, so I set up one of these for all of my kids. My two teenagers (14 and 17) keep track of their own debit card. I keep the debit card of my younger ones, but let them use it to make purchases on their own.

Features of the MONEY Teen Checking Account

  • No fees for setting it up.
  • No minimum balance.
  • Small interest rate which is variable.
  • Mastercard Debit Card with pin.
  • Access cash from 35,000 free ATM machines on Allpoint network.
  • Direct Deposit or transfer into account.
  • Text alerts available when transactions are made to help parents and teens keep track of money.

What Can Young Adults Do on MONEY Teen Checking?

  • See balance online.
  • Change nickname, PIN, personal information and "Saver ID" online.
  • Set up and receive text and email alerts about account activity.
  • Use the Debit Mastercard for purchases, getting money from ATM or cash advance.
  • Look at and download account history and statements.

What Can Adults do on MONEY Teen Checking?

  • Everything the Teen can do.
  • Sign in with their own Customer Number and PIN so that they can transfer money, use and Automatic Savings plan and look at account activity.
  • Use personal finance software like Quicken, Money, or CSV to download transactions on this account.
  • Make deposits or transfers through electronic deposit.
  • Use mobile website and mobile banking app for iPhone, Blackberry, or Android.
  • Use interactive Phone Service for 24/7 help at 1-888-464-7868.
  • Mail a check for deposit.

What do you Need to Sign up for a MONEY Teen Checking Account?

  • Adult (over 18) and teen (under 18) must sign up together and both be U.S. citizens or permanent residents with a Social Security number.
  • Adult must be an existing customer of ING, or needs to sign up for an account.

Other Good Bank for Kids?

Capital 360 has been a great bank for us. My kids also liked the fact that they got an extra $20 in their account when I responded to a special offer.

My oldest teen is turning 18 this summer and I just got a notice that the bank will be working with us over the next few months to turn the account over to her. Parents can still be on the account, but after they are 18, teens can have full access and make deposits and withdrawals on their own. I think that is a good plan.

However, I'd be very interested in knowing if other parents have banks for kids that they have found. If you know of a great kids bank, or a tip for helping kids learn about banking, please leave a comment.

More by this Author


Comments 6 comments

VirginiaLynne profile image

VirginiaLynne 4 years ago from United States Author

You are right about changes toknowinfo! Actually, ING just added a feature that lets you use an app to deposit checks by taking pictures with your phone or iPad. That will be great for us. I haven't tried it out yet, but plan to with my daughter's checks she gets from babysitting for our neighbor.


toknowinfo profile image

toknowinfo 4 years ago

This is a very helpful and informative hub. Letting kids have their own savings account is a valuable way to teach them the value of money and good savings habits. It is important to keep up on what the banks do, because sometimes they change the rules in mid stream. Great hub.


VirginiaLynne profile image

VirginiaLynne 4 years ago from United States Author

Tipstoretireearly--you are right. I love the fact that I get about the same interest or more than my brick bank savings/checking. So I use my ING DIRECT account for savings and transfer from my own home back and forth as needed.


VirginiaLynne profile image

VirginiaLynne 4 years ago from United States Author

I am so glad to help Dee--I was so glad to find this bank myself that I was hoping it would help others.


tipstoretireearly profile image

tipstoretireearly 4 years ago from New York

Great info. I've found that ing direct has some innovative accounts for adults too.


Dee aka Nonna profile image

Dee aka Nonna 4 years ago

This is amazing. I have been looking for online banking information so that we can get accounts started for my grandchildren. The local banks are very difficult make is impossible for kids, who do not have large amounts of money, to enjoy the checking/savings banking experience.

Thank you for sharing this. Voted up, useful, and sharing.

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