The Best Bank Accounts for Kids

It's surprisingly difficult to find good bank accounts for kids, since big banks prioritize customers with more money to spend. Most kids don't even consider getting a bank account until they have a job of some kind, depriving them of an early opportunity to get a financial education. While many banks will allow parents to open up a custodial account in their child's name, few banks offer a truly different product for young people. Check out a few of the best bank account ideas for kids listed below.

Young Americans Bank

Young Americans Bank is located in Denver, Colorado and is currently the only bank in the United States designed for kids who are 21 years or younger, making it basically a kids-only bank. It offers savings and checking accounts and credit cards and loans so that kids can basically do the same things that adults do in "grown-up" banks but on a much, much smaller scale. It only costs 10 dollars to open a savings account with an adult co-signer and earns anywhere from .1 to .5 percent interest. An ATM card cost five dollars every year and two free cash withdrawals are allowed per month, teaching kids to deduct their money wisely. This bank was named to Kiplinger's Best Bank Accounts for Kids in 2010 and serves 65,000 young people with products that include checking and credit cards, too.

ROTH IRA at Charles Schwab

For kids, or more accurately teenagers, who are earning a steady amount of money, opening a ROTH IRA at Charles Schwab is a good idea, as some of this money can be deposited steadily into the Roth IRA and make money through a variety of different mutual funds. While it may seem like a downside to your teen that they won't be able to touch this money without a relatively costly penalty, they will learn how money that is not in a bank account can make money through these mutual fund systems. This will be an important education for future investment opportunities, especially decades down the road.

Basic Savings Account

Just head down to your local bank and open a basic savings account. It can be any bank out there, but just a savings account with no fees and a basic ATM card that can only be used to withdraw cash is ideal, so that your kid or teen can't overdraw the account by just swiping this card regularly. By making them have to go to an ATM or actual bank location to deposit and get a hold of their money, they will learn to respect their money and what it takes to get it more.