At 16, the best bank account to open is a student or teen checking account with a linked debit card, typically requiring a parent or guardian as a joint owner. Top options feature no monthly maintenance fees, no minimum balance requirements, and, often, no overdraft fees to prevent overspending.
Many major US banks and credit unions, like Capital One, Chase, Bank of America, Wells Fargo, and Alliant Credit Union, offer accounts for 16-year-olds, often requiring a parent/guardian as a co-owner for teens under 17, though some allow 16-year-olds to open accounts individually, especially online; these teen accounts typically feature debit cards, mobile banking, spending controls for parents, and teach money management.
To open a savings account with a minor of any age, you must go to a branch together. Only one parent needs to be present. You and your child must both provide a valid primary ID, such as a state ID card, driver's license or passport. It must have a photo and cannot be altered or expired.
The Kotak Mahindra Bank Junior Savings Account is best for a child as it is specifically designed to teach your children the benefits of saving, while also providing a host of privileges across dining, edutainment and shopping on kids' brands.
The best bank for teens depends on needs, with top choices like Capital One MONEY, Axos Bank First Checking, Alliant Credit Union, and Chase High School Checking offering features like parental controls, no fees, high APYs, and strong mobile apps, catering to digital-native teens who want to learn money management with parental oversight. Capital One excels in online features, Axos in ATM access, Alliant in high interest, and Chase offers traditional banking with features for different age groups (First for younger, High School for older teens).
The top 5 banks in the U.S. by assets consistently include JPMorgan Chase, Bank of America, Citibank, Wells Fargo, and U.S. Bank, though rankings can shift slightly, with JPMorgan Chase generally leading, followed by Bank of America and then Citibank, Wells Fargo, and U.S. Bank in varying orders. These banks offer extensive services, from personal accounts to business banking, and have significant branch networks across the country.
Many major US banks and credit unions, like Capital One, Chase, Bank of America, Wells Fargo, and Alliant Credit Union, offer accounts for 16-year-olds, often requiring a parent/guardian as a co-owner for teens under 17, though some allow 16-year-olds to open accounts individually, especially online; these teen accounts typically feature debit cards, mobile banking, spending controls for parents, and teach money management.
The best bank for students depends on needs, with top choices like PNC (Virtual Wallet Student) for overall features/ATMs, Discover Cashback Debit for rewards/no fees, Capital One 360 Checking for no fees/travel, Ally Bank for online/no fees, and Chime for no fees/overdraft relief, all offering features like no monthly fees, low/no overdraft fees, and strong mobile apps to help students manage money without costly penalties or minimums.
While having a student checking account won't directly impact your credit score, it could help you gain access to credit in the future—especially if you keep your account in good standing and use it to automate bill payments so you're never late.
For instance, giving your child easy access to money without oversight could potentially lead to careless spending. If the account has opted-in to overdraft coverage, your teen could also overdraw their account, which might result in an accumulation of hefty overdraft fees.
Teenagers under the age of 18 aren't yet eligible to get their own credit card. With some card issuers, parents may be able to add a teenager as an authorized user once they turn 13. Parents can use credit card as an opportunity to teach kids about personal finance and encourage them to build healthy financial habits.
FlexOne current account. Our fee-free children's account for 11- to 17-year-olds to help you manage your money and earn interest. Rated Five-Star by Moneyfacts.
While the best way to save money for kids depends on your personal goals, here are the top options worth considering.
Top-pick student bank accounts
Commonwealth Bank has been named Money's Best-Value Children's Savings Account - Banks, while Great Southern Bank has been named Best-Value Children's Savings Account - Customer-Owned Banks.
All About Indus Delite Zero Balance Savings Account
Yes, a 16-year-old can have a bank account, but usually needs a parent or guardian as a joint account holder, especially if they are a minor (under 18 or 19 depending on state laws). These are often called teen or student accounts, offering debit cards and mobile banking to teach financial responsibility with adult oversight, though some banks allow older teens (like 16-year-olds) to have sole ownership with specific account types.
The best bank for teens depends on needs, with top choices like Capital One MONEY, Axos Bank First Checking, Alliant Credit Union, and Chase High School Checking offering features like parental controls, no fees, high APYs, and strong mobile apps, catering to digital-native teens who want to learn money management with parental oversight. Capital One excels in online features, Axos in ATM access, Alliant in high interest, and Chase offers traditional banking with features for different age groups (First for younger, High School for older teens).
The kiddie tax applies to a child's unearned income, which includes interest, dividends and capital gains. The 2026 kiddie tax allows the first $1,350 to be tax-free, taxes the next $1,350 at the child's marginal rate, and applies the parent's marginal rate to the rest.
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