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Capital One MONEY Teen Checking Account Review

The Capital One MONEY Teen Checking Account is one of the best bank accounts for kids. It pays interest on all balances, it’s open to kids as young as 8, and it’s flexible enough to accommodate kids and teens at all stages of their financial education journeys.

But MONEY Teen Checking isn’t perfect. The biggest drawback is the lack of rewards on debit card purchases, which many teen-friendly personal finance apps and debit cards offer.

But there’s a lot more good than bad here. If you’re looking to set up a new checking account for your youngster while keeping tabs on what they’re doing with their money, MONEY Teen Checking should be high on your list.

The Capital One MONEY Teen Checking Account is an interest-bearing checking account for kids as young as 8. It has no minimum balance requirements or monthly maintenance fees.

MONEY Teen Checking is a joint bank account, so a parent or guardian shares ownership privileges with the kid. While it doesn’t have super-granular parental controls, it’s easy for adults to monitor account activity and remove money from the account.

MONEY Teen Checking comes with a Mastercard debit card. It belongs to a big fee-free ATM network. And it seamlessly links to external accounts, including non-Capital One accounts, for easy allowance payments.

The Capital One MONEY Teen Checking Account stands out for three key reasons:

The Capital One MONEY Teen Checking Account’s most important features give teens plenty of freedom while allowing parents to monitor them from a distance, only getting involved when the teen needs guidance.

MONEY Teen Checking has no minimum opening deposit or balance requirement. It also has no monthly maintenance fee or other ongoing fees. There are some less common fees associated with this account, but it’s easy enough to avoid them if you opt for electronic statements and avoid overdrafts.

This account comes with a Mastercard debit card. Use it wherever Mastercard is accepted and add it to your mobile wallet for contactless payments, which are faster and more secure than traditional swipe or dip payments.

Between Capital One- and Allpoint-branded ATMs, MONEY Teen Checking has about 70,000 fee-free ATMs in its network. You won’t pay a cent to withdraw cash from these machines. If you use a machine outside the network, that machine’s network controls the fees.

MONEY Teen Checking’s parental controls are not super-strict, but parents can monitor kids’ account activity through the app and withdraw funds at any time. Parents can also set up real-time alerts to be notified of and review kids’ transactions. If you want total control over your kids’ financial behaviors, this probably isn’t the account for you, but it’s fine for more laid-back parents.

Kids and parents can set savings goals and track progress toward them. Parents can make one-time transfers for meeting savings goals or progress milestones by transferring funds from a linked external account, even a bank other than Capital One.

This account supports employer direct deposit payments. That’s a nice benefit for older teens with jobs, and doesn’t require the parent co-owner’s permission to set up.

All balances in the Capital One MONEY Teen Checking Account yield 0.10% APY. There are no qualifying activities to earn this yield, which is a nice advantage over accounts that require you to jump through hoops.

The Capital One mobile app can handle just about anything the web portal can. That includes:

The Capital One MONEY Teen Checking Account remains open after the younger account holder turns 18. The adult owner remains on the account as well. That can continue indefinitely, but the younger owner can open a grown-up Capital One account and transfer their funds there. 

It’s not unusual for people to want total autonomy once they’re legally adults. But there’s something to be said for keeping your parents on your account as full account holders while you’re away at college too.

The Capital One MONEY Teen Checking Account comes with $250,000 in deposit insurance through the Federal Deposit Insurance Corporation (aka FDIC). That should be plenty for most teens (and their parents).

It may be tempting to think all teen accounts are the same, but that’s not the case. Understand the benefits and drawbacks of the Capital One MONEY Teen Checking Account before setting it up.

The Capital One MONEY Teen Checking Account has a lot of perks. These are the most notable.

These are the biggest downsides of the Capital One MONEY Teen Checking Account. Consider them carefully before you apply.

The Capital One MONEY Teen Checking Account is one of the better teen-friendly joint checking accounts on the market. But it has some competition. See how it compares to a similar alternative, the Alliant Credit Union Teen Checking Account.

The Capital One MONEY Teen Checking Account is one of the few kid-friendly checking accounts that pays interest on all balances. It’s also somewhat unusual in that it’s open to kids 8 and up, as opposed to 13 and up for your typical kids’ checking account. 

But it’s not perfect in every way. Debit card purchases don’t earn rewards, and there’s no automatic upgrade process when the younger account holder turns 18, setting up a post-adulthood limbo. But on balance, there’s not a lot to dislike about MONEY Teen Checking.

The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors.

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