How to Open a Student Bank Account at Associated Bank

Student banking basics: how to open a checking or savings account

As your child gets older, they will start to face the various challenges that come with being a financially responsible adult.

From helping with budgets to showing how direct deposit works when they receive their first paycheck, you’ll want to equip your teen with the tools and information they need to make informed decisions about their finances.

In most cases, the first step is to help them open the various financial accounts they’ll need to effectively manage their finances.

While exact requirements can vary from bank to bank, there are two general approaches for helping your teen open a checking or savings account at your bank:

• Open a joint account with your teen — In this account type, you and your teen are co-owners of the account and have equal access to all the funds. This means you can both make deposits, withdraw money or use the debit card as if it were your own individual account. At most banks, you can open both a joint checking and savings account with your child, each carrying different pros, cons and perks depending on the bank’s policies.

• Open a custodial account for your teen — Alternatively, you could open a custodial savings account, where your child is listed as the registered owner of the funds while you as the parent are the “custodian” of the account. In this setup, you can both make deposits into the account, but withdrawals can only be made with your permission until your child turns a set age as defined by the bank (usually 18 or 21). At that point, the money will become solely theirs, and they can transfer it to their own separate checking or savings account.

• Open a custodial account for your teen — Alternatively, you could open a custodial savings account, where your child is listed as the registered owner of the funds while you as the parent are the “custodian” of the account. In this setup, you can both make deposits into the account, but withdrawals can only be made with your permission until your child turns a set age as defined by the bank (usually 18 or 21). At that point, the money will become solely theirs, and they can transfer it to their own separate checking or savings account. There are benefits to the student to have a savings account linked to their checking account where they can transfer funds to.

The key differences between these two account types lie in the different features offered for each (such as spending limits or access to a debit card) as well as the various parental controls present in each option.

For example, opening a joint account with your teen is an excellent way to teach them basic financial concepts such as budgeting and money management, while also giving them full access to spend any money in the account as they see fit.

Meanwhile, custodial accounts are limited to just depositing money. Because the money in this account is the sole property of your child, you can only use it for expenses that directly benefit them, such as paying for school expenses.

Your first step, then, is to decide on the level of oversight you plan to have over your child’s account.

Key features of a bank account for students

Depending on the bank or financial institution you choose, you’ll be presented with a wide array of different benefits and features for each checking and savings account option.

While the offerings can vary widely by bank, there are a few common traits you should look out for to start your child out on the right foot:

• Online and local banking options — Teens are increasingly using online platforms as a method of managing their lives, and it’s no different when it comes to their finances. When searching for a bank, make sure to find one that has a strong online presence in addition to helpful local branches in the event you or your teen needs assistance with their account.
• Access to a debit card — For teens, the transition to being responsible for their own spending can be tricky. For this reason, it’s wise to make learning about spending as easy as possible by ensuring your teen has access to a convenient debit card for quickly accessing and using their funds.
• Account alerts, fraud protections and spending limits — Regardless of whether you’re worried about impulse purchases or your child accidentally compromising their account, it’s important to partner with a bank that offers guard rails such as account alerts, fraud protections and spending limits to help protect your child’s finances. Importantly, rather than overcorrecting and stifling their ability to use their money, take this as an opportunity to teach them about smart money habits while ensuring they have a safety net should something go wrong.
• Budgeting tools — Finally, the most important lesson your child should take from their first bank account isn’t “what bank should I store my money at,” but rather “what should I do with my money once I have it.” Make sure your bank of choice has the budgeting tools your teen needs to manage their finances and learn more about the effects that different levels of spending and saving can have on their savings rate.

How to open a student banking account

You can open student banking accounts quick and easily online or at a nearby branch location.

Generally speaking, when you open an account, you may need various documents from the student:

1. Proof of identity — First, both you and your child will need identity documents to prove who you are. These can include, but are not limited to, a Social Security number or card, a driver’s license or other form of photo ID (for your child this can include a school ID or employment badge), a birth certificate or any other accepted form of identification.
2. Proof of residence — Second, your bank will want to see proof of legal residence (such as any U.S. citizenship indicator such as a Social Security number or proof of permanent residence via a green card) and proof of a physical address to associate your account with.
3. Lack of any disqualifying factors — Some banks and credit unions place restrictions on who they work with. Associated Bank offers family banking for kids, teens and their parents.

Are there any other account types to consider?

Depending on your goals for helping your teen, as well as what they want to do with their money, there are other account types that can help them save money for the future:

• A certificate of deposit (CD) — Help your child put their money to work over a longer period by opening a regular-term or fixed-rate CD, which generally offers better interest rates than other savings accounts. These are great options for when your child wants to save money for the future (such as saving up for college).
• ROTH individual retirement account (IRA) — There are no minimum age requirements for opening an IRA. This means you and your child can make tax-free contributions to the account with eligible funds to get a jump start on their retirement planning while simultaneously lowering your own tax burden.
• A 529 plan — A 529 plan is a special investment savings account that lets you make contributions for your child’s education (usually while gaining tax deductions and credits which can vary by state) and then make tax-free withdrawals to pay for qualified educational expenses. Importantly, anyone, including your teen, can contribute to a 529 plan, even if they’re the beneficiary on the account. This plan type is an attractive choice for collecting and investing gifts from friends or family and holding any funds your child wants to specifically earmark for college or other forms of higher education.

Student checking account FAQ

If you have any questions about opening a teen checking account, you should reference both the policies of your bank of choice and any relevant laws or regulations in your state.

However, there are a few common questions to be aware of as you search online for various teen checking and saving options.

Are there any ways to protect my teen from fees and overdrafts?

Yes, there are several strategies for protecting your teen from fees such as overdrafts.

First, look to see if your account of choice has any minimum account balance requirements to ensure your child understands they should never let their balance dip below a certain amount. Setting up low balance alerts or sending them regular account statements will also help your teen better keep track of how much money they have available.

Second, review any overdraft protections your bank offers to help mitigate any fees incurred by your child going into the negative on their account. For example, you could link their account to a separate savings account to fund any overdrafts and provide a buffer between your child and any fees.

Associated Bank offers $50 Overdraft Grace Zone* which automatically covers your overdraft up to $50 with no automatic fee. Protect yourself from overdrawing your account by having funds automatically transferred when your balance goes negative. To have this feature you need to link to any of your other Associated Bank accounts.

Finally, depending on the policies and capabilities of your bank you may be able to set certain restrictions on transactions made on the account to help prevent unexpected fees or other expenses. For example, you could limit the account to only accept transactions originating in the United States or set an upper limit on what types of transactions are allowed to go through.

You can opt out of Overdraft Grace Zone at any time.

What’s the minimum age to open a teen checking account?

From a purely legal perspective, you can open a joint checking account with your child regardless of age.

However, banks can have different policies and guidelines for whether they’ll allow you to open certain types of accounts for children, as well as having minimum age requirements for being registered as a joint owner (as opposed to the beneficiary of a custodial account).

For this reason, the minimum age requirement for your child to open a checking or savings account will vary based on the policies of the bank and the accounts they have available.

Can my teen open a credit card too?

No. There are federal laws in place that state you need to be 18 years or older to apply for a credit card in the United States, with restrictions for having an independent income or co-signer only falling off when you reach 21 years of age.

However, if you’re interested in helping your child build credit before their 18th birthday, you may want to look into adding them as an authorized user on one of your credit cards.

Currently, children as young as 13 years of age can be registered as authorized users on a credit card, giving them up to five additional years of credit history to work with once they start out on their own.

However, this strategy cuts both ways, and you should be especially careful to make sure you pay the card off in full each month to prevent any negative marks against your child’s credit.

Start meaningful financial conversations with your children today to prepare them for tomorrow

Teaching smart financial habits can be a rewarding way to ensure your teen can put their best foot forward as they set off on the path to adulthood.

By helping them open a teen checking or savings account, you can give them an opportunity to practice common financial tasks such as building a budget, managing direct deposit information, using an ATM or bank to withdraw funds and making payments for products or services using a debit card.

Many parents choose to help their children set up joint or custodial checking and savings accounts at their local bank to provide them with the tools they need to plan for their financial futures.

If you’re interested in opening a checking or savings account for your teen, your most important first step should be to talk to an experienced local banker who can guide you through the process and lay out the pros and cons you should consider for each different account type.

By opening an account online or scheduling an in-person appointment with your banker, you and your child can learn more about the tools and resources they have available for ensuring your teen has a bright and financially secure future.