Considerations Before Opening a Bank Account for Your Teenager
You can easily open an account for your teen at a credit union, typically within a few hours. Opening a teen bank account offers several significant advantages for the teen and you as the guardian/parent. But opening an account is one part of it; there are several important considerations to make before doing so. Here are some of them:
All financial institutions, including credit unions, charge some fees to cover operating costs. Some credit unions charge hidden fees that may need to state when you operate accounts with them. Ask for the fee breakdown and the transparent fee structure. You should not have to pay for withdrawals.
Promos are great for attracting customers, but what happens when they end? Before you open an account through a promo, research the credit union, its fees, services, and plans to ensure they fit your needs.
It is good to determine if your credit union sets a minimum deposit amount before opening a teen bank account. Banks use minimum deposits as a commission amount to keep the interest of their members. You can quickly pay above the minimum deposit and set a regular deposit structure for your teen.
Credit unions are owned and operated by the members, typically members of a local community. Member involvement is essential to the success and performance of any credit union. Go for one that allows members to participate in decisions, earn rewards, and belong to a strong community. You’ll help your teen build financial and relationship skills they’ll need in the future.
Find a credit union that offers flexibility in deposits, withdrawals, and other banking services. Your teen should have access to the account via e-banking and broader ATM coverage. This is especially important as the world moves to a cashless era. The account should also have flexible savings plans allowing your teen to earn interest on savings.
Consider the above when opening a teen bank account, and you’ll be able to make the best choice for your teen. Go for a credit union that offers the best advantages and low fees.