How to find the best checking account for children and teenagers. At what age?
by Uwe Winkler updated on: 07.01.2020
On Current account for children has practical advantages and can help you learn how to use money. The age at which the parents decide to open a child’s current account depends on the child’s development and cannot be directly linked to a number.
Legally, an account with ownership of minors is embedded in the regulations on restricted business capacity. At the opening must all legal guardians the legitimation using the Postident procedure. A signature is only sufficient if proven sole custody. A certified one Copy of the birth certificate the child must be submitted in any case. From the age of 16, the minor additionally legitimizes himself through the postident procedure. The custody officer has power of attorney until the child is of legal age.
Current account advisor
Advantages of a checking account for children
- Investment of pocket money with interest directly in the checking account.
- Cash withdrawals are free, depending on the machine network.
- Accounts are free of charge, overdrafts are not allowed
- Online banking and cashless payments in shops or online
- Cash also available abroad with prepaid Visa cards
- Learn simple banking procedures when dealing with money
- Child can use their own savings allowance
Minors can never open an account themselves!
Recommendation for children up to 7 years
Minors in this age range have their own checking account not to be trusted. Only in school do elementary school students learn simple math, which is a prerequisite for understanding bank transactions, account balances and transfers.
For this reason, many banks set the minimum limit at 7-12 years or only issue a bank card from 7 years.
In our opinion, the checking account only makes sense for under 7 year olds if the interest rate is low. The current account at the DKB offers e.g. 0.20% interest on the Visa overnight deposit account and can also be opened for a small child. For a baby or toddler, however, we recommend a child savings account or daily allowance, but not a current account.
Recommendation for young people from 7 to 13 years
In this area it makes sense to think about having your own current account for the students. Banks sometimes do not offer a full Maestro Card – but customer cards with which cash withdrawals in branches are possible. Paid-in money gifts, for example, generate the first interest.
A safe and good way to get started Cash cards or prepaid Visa cards. An amount can be loaded here via terminals or via online banking. Up to this amount, the prepaid card can be loaded to a maximum.
Recommendation current account for young people from 14 to 18 years
A school exchange or a stay abroad, the first vacation job with payment of wages. Having your own checking account makes sense and is a real advantage, especially when accessing cash. However, an overdraft facility or a full credit card will only at the age of majority output.
Parents should check the most important bank terms such as direct debit, overdraft interest, overdraft interest, balance, appointment transfer, PIN / TAN, M-TAN, HBCI, exemption order, flat rate tax, etc. Explain to the young people step by step and ensure that knowledge and responsibility in dealing with banks and money are constantly increasing.
Cash supply for youth giro accounts
Bank customer cards are often only issued for the age range 7-10 years. This means that money can only be withdrawn from ATMs operated by the bank itself, with Maestro cards or V-Pay cards, even from third-party machines. V-Pay is the safest technology, here the account information is stored on the card itself and not on the magnetic stripe, which prevents pishing and data misuse more effectively.
In addition to savings banks and Volksbanks, each with a nationwide network of vending machines, there are two associations of vending machine networks. For a youth account with a bank in the respective network, this ensures that free cash access is possible with all ATMs in the network.
cash pool 2,900 machines (e.g. Wüstenrot, netbank, Sparda Banken) Find a branch by zip code at cash-pool »
cash group 9,000 machines (e.g. Deutsche Bank, Postbank) branch search by zip code at cash-group »
Withdraw free of charge with your credit card.
DKB and Wüstenrot also allow withdrawals with the VISA card or VISA prepaid card. With Wüstenrot, 12 withdrawals from any ATM are free of charge, the DKB guarantees free withdrawals worldwide with the Visa card.
Deposits of cash at direct banks – pay attention to the costs.
Money gifts from birthdays or confirmation should of course be paid into the checking account as soon as possible. For direct banks without their own branches, this is only possible through a third-party bank. This service is chargeable.
Our tip: In this case, it is worth paying into the parents’ account and then transferring them to the youth giro account.
The exemption limit of 801 euros per year applies. With regard to income tax, there is a basic allowance for children, like for adults. In 2019, for example 9,997 euros can be earned tax-free. It does not matter whether the income comes from work or from interest income.
As Tax shelter however, the children’s account may not be used. The tax office evaluates the deliberate distribution of parental assets among the child’s accounts as a legal abuse of design and can demand taxes.
Which current account is the right one?
No account management fee, almost nationwide free of charge cash supply in the cash group network, prepaid credit card from 12 years. The facts speak for the Giro Start Directly at Postbank for the reason that if there are problems or the desire to make a deposit, e.g. from birthday allowance the nearest branch is just around the corner.
For banks, growing children and students and generally young people are one interesting target group. Attempts are made to tie the children to the credit institution early (also via facebook). All youth giro accounts are free of charge, but the adult accounts are not always. Take a close look at the conditions! At the age of 25, for example, the Wüstenrot Top Giro for young people will be switched to the Wüstenrot Top Giro. Both accounts are free of charge. A checking account at Sparkasse or Postbank that is later free of charge is tied to minimum payments. Credit cards cost extra in these cases. A growth account like the one from the DKB is ideal, which remains with the adult (identical account number). The authorization of the parents expires automatically. The current accounts are to be re-legitimized by the adult child themselves after they have reached the age of majority.
Comparison of current accounts for children and pupils as of: 07.01.2020
The comparison does not represent a complete market overview.
|Giro Start Direct
|12 – 22 years
|A VISA prepaid card can be requested from the age of 14. Branch service and good cash supply with Postbank branches and cash group (Deutsche Bank, Commerzbank etc.) As an adult account, unfortunately, with account management fees (Giro Direkt).
Image source: Fotolia.de – © wildworx
Offers from regional banks for young people
Of course, the savings banks and Volksbanks also offer accounts for young people. We kindly ask you to go directly to the branch that is represented locally. The conditions are very different from place to place. In any case, a current account for minors at the Sparkasse is free of charge and sometimes quite good interest.
However, monthly fees apply for adults. Credit cards are not free, as is the case with direct banks, Wüstenrot, DKB or ING.
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