For teenagers, having a savings account can be a good introduction to the world of financial management, especially if they already have a job. The ideal account for a teenager has no monthly fees, no minimum balance and a good interest rate. Some banks allow teenagers to open current accounts as well, as long as their parents cosign on their accounts.
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ING Direct offers special savings accounts for kids 16 and under. These accounts have no minimum deposit, no monthly fees and competitive interest rates, making them a good "starter" account for teens and kids. In addition, ING Direct has a financial education website known as Planet Orange geared toward children and young teens. The bank allows a minor to open a current account as long as the account is cosigned by the parent. The teen manages the account and signs the checks, but any financial dispute is settled by the parents.
Bank Of America
Bank Of America allows parents to set up a savings account for their kids and provides parents tools to budget their children's money, such as the ability to set a budget limit. For more independent teenagers, B Of A also offer current accounts to teenagers as young as 16, as long as they have two pieces of photo identification. This can include a driver's license or school ID.
Young Americans Bank
Exclusively for depositors under 22, the Young Americans Bank (YAB) operates out of Colorado but is available to teens from all over the country. This financial institution allows teens to open a current account at a younger age than any other bank -- the average age of its account holders is 16. A current account requires an adult sponsor, but the restrictions are less strict than other banks'. The YAB's parent organisation, its Center for Financial Education, also provides classes on financial management and entrepreneurship.
Many credit unions offer accounts to teenagers. Because they are not driven by profit margins as much as banks, credit unions tend to have low fees and no minimum balance. They may require the sponsoring parent to be a member of the credit union or be eligible to become one. Navy Federal Credit Union, the nation's largest credit union, allows teenagers as young as 16 to open a current account as long as their parent served in the military.
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