Bank Accounts for Teenagers

What exactly is a bank account for teenagers?
A bank account for teenagers works just like any other account. The key exception is that you will not be offered credit in any form (like an overdraft or credit card). You can open a savings accounts, a current account or a combination of the two. You’ll also get a cash card or a debit card and will likely get access to online banking.

Who can open a bank account?
Usually, banks allow children from a young age to open a savings account with them, but from the age of 11 you can generally upgrade to a full blown current account with a debit card that can be used at ATMs or as payment in shops. Bank accounts for 16 year olds can typically be opened without a parent or guardian and can sometimes be opened online.

Will my bank account cost me anything?
No. All of the accounts on this page are free to the consumer.

How do I open a bank account for a teenager?
Each bank has different rules. If you are 16 years old, you can either open an account online or pop into a branch. Under 16 year olds will need a parent or guardian with them. RBS and Natwest allow for online opening. Many others you'll need to go into a branch if you're under 16.

Banking for Teens - Parents

If you want to open a bank account under the age of 18, it is probably worth discussing it with your parents or guardians. But, do you need their permission and should you just pick whatever bank they’re with?

Do I need my parents permission?
If you are under 16, it is normal for banks to require a parent or guardian’s signature for you to open a bank or receive a debit card. Even if a bank didn’t require formal permission from your parents, you would probably run into a few issues, such as having to prove your address (with a letter from the school, or similar) and having mail arriving at your home address.

Once you get to 16 years old, you are pretty much free to do as you please. Although you will have to wait until you turn 18 to access things like credit cards and overdrafts.

Should I just pick the bank my parents are with?
Frankly, where your parents bank really should have no impact on where you bank. What’s right for them will not necessarily be right for you.

If the reason your parents bank with a particular bank is due to location, then perhaps there are some benefits there. For example, if it’s the only bank in the village and you want to go old school and pay in a cheque (if you even know what one is!), then perhaps you want the convenience of banking there… But, let’s face it, you have the ability now to do your banking almost entirely online or on the phone and you can withdraw your cash for free at most ATMs out there, so proximity is becoming fairly irrelevant at this stage.

What if my parents disagree with the bank I want to choose?
If you are under 16, there’s not a lot you can do if your parents insist you bank with a particular bank. If you really disagree with them, perhaps you can send them a link to our page and explain why you have picked the bank you have picked. If a logical and rational argument fails, i’m afraid you’ll just have to wait until you’re 16 years old.

Cash vs. Debit Cards for Teens

All of the bank accounts for teens listed on this page offer debit cards, but some allow you to choose between a cash card and a debit card.

What’s the difference between a cash card and a debit card?
Cash cards are linked to your bank account and simply let you withdraw cash from an ATM. A debit card does this too, but also allows you to pay for items in shops and online and can also be linked to cool new stuff like Apple Pay.

Debit cards are great, and give you the most flexibility, but if you are under 16 you will probably need your parent's permission to get one.

Extra Perks on Bank Accounts for Teens

Generally, banks don’t offer a whole lot of incentives for under 18s to sign up to their accounts, which makes them fairly easy to compare to each other.

So what extra perks might I be able to get?
Generally, the best you will get is your debit card customised with your own photo or design. This can be pretty cool, but you should remember that important financial decisions should not be based on trivial factors. Barclays allow personalisation of their cards with your photo.

More importantly, you should look at the interest you can earn on your balance. Every penny counts!

Charges and Fees on Bank Accounts for Teens

I’ve heard that banks can charge fees, will I be charged?
Not in this kind of account, no. Banks will often charge customers if they accidentally withdraw more money than they actually have in their account. You won’t be able to do this with an account for under 18s. The debit cards you are given will only allow you to spend what’s in your account.

So no need to worry about charges too much now, but it’s good to get into the habit of being careful not to accidentally try and spend more than you have.

Interest Earned on Savings on Bank Accounts for Teens

If you plan on having a little bit of savings in your account, firstly, well done you, and secondly, you should check which accounts offer the best rates.

What is AER?
Interest rates are often quoted in AER, which stands for Annual Equivalent Rate. AER is designed to make comparing interest rates easier. The calculation assumes that you keep earning interest over a year and takes into account factors such as compound interest. The bottom line is, when you want to compare interest rates, look for the AER number to ensure you are comparing apples to apples.

Which bank accounts for teens offer the best interest rates?
There are a few different ways you can earn interest on these accounts. Some accounts will simply apply interest to the balances in your main accounts, some will offer a separate savings account which will be different from your main current account, and some will offer a combination of the two.

• Separate savings accounts: Banks with separate savings accounts include HSBC, which offers 2.75% interest on balances up to £3,000
• Interest on bank balances: Banks with the highest interest on balances in your account include TSB (2.5% on balances up to £2,500), Santander (1% for balances over £100, 2% over £200 and 3% over £300 and up to £2,000), Halifax (1.51%), Lloyds (1.5% up to £2,500) and NatWest (1%).
• Combination: Nationwide’s account offers a separate savings bank account, where you can save up to £100 per month and earn 3.5%, and also offer interest of 1% on you current account balances up to £1,000.

Banking for Teens - Off to Uni?

What banks do with your accounts after you have completed your studies differs, so you should be sure you fully understand what’s going to happen.

I currently have a bank account, what happens when I go to Uni?
Sometimes, your bank will automatically convert to a student account when you go to Uni, others you may need to call or let them know, so that they can convert the account.

Check the terms and conditions, or speak to a bank representative to make sure you are absolutely clear what is happening with your account. In any case, when you go to Uni you should be reviewing your account and check for the best deals out there again, as student bank accounts are often bundled with lots of cool stuff and perks. It’s definitely worth checking if you should switch.

You can learn more in our guide to student bank accounts.

I currently don’t have a bank account, but am going to Uni soon...
If you don’t have a bank account, but are looking for one, then you might want to read our guide to student bank accounts.

You may want to consider banks like NatWest or Nationwide, which offer some of our favourite bank accounts for students and under 18s alike.

Check out the guides and figure out what’s best for you.