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What is the best bank account for teens?
Based on our evaluation of teen chequing accounts in Canada, Scotiabank’s Getting There Savings Program for Youth ranks the highest with a rating of 3.8 out of 5 stars and is a leading choice for building financial literacy. Nevertheless, each of our top five teen chequing accounts stands out in different ways. The Vancity Credit Union’s Youth Chequing Account is the best account for ATM access, while the Canadian Western Bank Youth Account is the best for earning interest. Ultimately, the best bank account for teens will depend on their unique needs, whether it’s cost-effectiveness, access to funds or learning financial management.
Can a minor have a chequing account?
Yes, minors can have chequing accounts in Canada. These accounts usually need to be joint accounts with a parent or guardian and come with features tailored to younger users, like parental controls and limits on withdrawals.
What happens to a teen chequing account when I turn 18?
When you turn 18, many banks transition your teen chequing account to a standard adult chequing account. This process might involve new terms and fees. In addition, the bank will issue you a new debit card under the standard adult account terms.
Can a 14-year-old open a chequing account?
Yes, a 14-year-old can open a chequing account in Canada, generally as a joint account with a parent or guardian. Banks have specific youth or teen accounts designed for this age group, featuring low or no fees and parental oversight options.
Do teen chequing accounts have monthly fees?
Many teen chequing accounts in Canada do not have monthly fees, aiming to make banking accessible and affordable for young users. However, it’s important to check for other potential costs like ATM fees or fees for transactions beyond set limits.
How old do you have to be to get a debit card?
In Canada, minors can get a debit card at the age of 12 to 13, depending on the bank’s policies for youth accounts. These debit cards are typically linked to a joint account with a parent or guardian.
What’s the difference between a debit card and a prepaid card?
A debit card is linked directly to a chequing account, withdrawing money that the user already has deposited. A prepaid card, on the other hand, is loaded with a set amount of money in advance and can be used until the balance runs out. Debit cards often come with fewer fees and can be reloaded directly by depositing more money into the associated account, while prepaid cards might require purchasing a new load of funds.