Personal Finance

Kids/Youth Accounts

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[OP]
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May 19, 2005
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Kids/Youth Accounts

What's the best options these days for Kids/Youth accounts? Way back in the day when I was 11, I was able to walk into a bank and open my own account to cash my paper route cheques. Even got my own ATM cards back then without parents help.

Any good offers available? I saw that RBC is running a promo for $25 bonus for kids (12 and under) and $60 student (over 12) accounts with free eTransfers. Seems Ok but limited to 15 and 25 monthly free transactions. MasterCard Virtual debit card could be useful.

TD has no account opening bonus but is unlimited transactions but 50 cents to $1 for eTransfers.
Scotia offers unlimited transactions but only 2 free etransfers, $1 after; + Scotia rewards
CIBC may be best with no minimum balance and free transactions including etransfers; SPC membership

All these have non-existent interests rates.

Tangerine seems better for interest with Youth accounts but require parents to bank with them. Unlimited transactions and easy transfer to zero fee accounts when they're over 18.
Simplii doesn't seem to offer any youth accounts

So looks like RBC (for bonus and low usage) or CIBC (unlimited transactions) may be the best option since they don't have a lot of cash to generate interest anyways.

Opinions?
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Jan 9, 2011
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Jonavin wrote: What's the best options these days for Kids/Youth accounts? Way back in the day when I was 11, I was able to walk into a bank and open my own account to cash my paper route cheques. Even got my own ATM cards back then without parents help.
I did the exact same thing when I was 11. Walked into RBC branch with cash, opened account, left with blank cheques and ATM card. It was the mid 80s. I wonder if this is still possible for kids to do in their own now.
[OP]
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Kiraly wrote: I did the exact same thing when I was 11. Walked into RBC branch with cash, opened account, left with blank cheques and ATM card. It was the mid 80s. I wonder if this is still possible for kids to do in their own now.
I don't think it's possible these days. We're both from the same era where everything was simple. Most kids don't even have part-time jobs these days.
Some people just don't get that online forum posts shouldn't always be taken seriously.
Penalty Box
Jun 24, 2015
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I opened a savings account for my two kids, just walked into the branch, brought passports and SIN numbers and within 30 mins had debt cards and bank account numbers, even transferred some funds from my account into theirs and voila, we go once every two months to deposit coins and bills they get from gift money, pretty neat and its good to teach them financial literacy at a young age
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Mar 7, 2008
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recently? (during covid-19) and which bank? I want to do the same thing.
GoodFellaz wrote: I opened a savings account for my two kids, just walked into the branch, brought passports and SIN numbers and within 30 mins had debt cards and bank account numbers, even transferred some funds from my account into theirs and voila, we go once every two months to deposit coins and bills they get from gift money, pretty neat and its good to teach them financial literacy at a young age
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Mar 7, 2008
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Jonavin wrote:
CIBC may be best with no minimum balance and free transactions including etransfers; SPC membership
SPC membership is for High school students and College, university students. Kids under 12 cannot get SPC membership.
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Apr 5, 2016
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Kids under 12 can open an account in their own name but will need privacy and parental consent form signed. Over 12 and they can open all on their own.
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Jun 28, 2013
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Jonavin wrote: Any good offers available? I saw that RBC is running a promo for $25 bonus for kids (12 and under) and $60 student (over 12) accounts with free eTransfers. Seems Ok but limited to 15 and 25 monthly free transactions. MasterCard Virtual debit card could be useful.
Don't think 15/25 monthly free transactions would really matter for a youth?

Have you consider looking at credit unions around you? Sorry not familar with the ones in Markham.
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mouseswimming wrote: recently? (during covid-19) and which bank? I want to do the same thing.
I did it 4 years ago man, no where did I say recently
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Mar 7, 2008
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I opened RBC kids account couple days ago for my son. The balance is still ZERO. I did not receive the $25 bonus. How long should I wait for? Or they just forget it, I need ask for this bonus?
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Dec 5, 2016
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mouseswimming wrote: I opened RBC kids account couple days ago for my son. The balance is still ZERO. I did not receive the $25 bonus. How long should I wait for? Or they just forget it, I need ask for this bonus?
Thinking of opening up a youth account as well. Did you end up receiving the bonus?
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Kiraly wrote: I did the exact same thing when I was 11. Walked into RBC branch with cash, opened account, left with blank cheques and ATM card. It was the mid 80s. I wonder if this is still possible for kids to do in their own now.
haha these days 11 year olds don't even go out in public by themselves.
Used to run around with my buddies all the time at that age. We always had a baseball bat or a hockey sticks for our recreation. But we also needed them to protect ourselves from the neighbourhood teenagers and pedos.

hm.... thats probably why people don't allow their 11 year olds out like that anymore . . .
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Mar 7, 2008
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alucky17 wrote: Thinking of opening up a youth account as well. Did you end up receiving the bonus?
Yes. Just need wait for little bit longer.
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Jr. Member
Mar 7, 2012
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TD branch staff told me today that restrictions have been added to youth accounts, and (a 14 year old) can no longer withdraw at an ATM.

I also asked TD chat, who backed them up...
"Thank you for your patience. I have reviewed our new procedure for our Youth Accounts and the signing authority transacting on the account, must complete these transactions within the branch to comply with our Anti-Money Laundering regulations. If you are withdrawing funds from the account, this must be completed within the branch. This was a change made to a TD policy to comply with federal regulations. "

Would be happy to hear if this is others' experience too.
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imdanrydell wrote: TD branch staff told me today that restrictions have been added to youth accounts, and (a 14 year old) can no longer withdraw at an ATM.

I also asked TD chat, who backed them up...
"Thank you for your patience. I have reviewed our new procedure for our Youth Accounts and the signing authority transacting on the account, must complete these transactions within the branch to comply with our Anti-Money Laundering regulations. If you are withdrawing funds from the account, this must be completed within the branch. This was a change made to a TD policy to comply with federal regulations. "

Would be happy to hear if this is others' experience too.
Strange. Never heard of these aml regulations... children are allowed to withdraw from their accounts @ bmo on an atm machine.

Deposits are another story. A little kid isnt going to have a job or deposit checks. So they could scam. One problem i can see is a problem with kids getting tricked into check scamming.
(Not impossible just saying unlikely).

Just go to bmo. They allow for it
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Mar 7, 2012
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I hadn't considered that possibility. Thanks.

Also, TD online support got back to me:
Yes, Youth Access Cards can make ATM withdrawals.
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GoodFellaz wrote: I opened a savings account for my two kids, just walked into the branch, brought passports and SIN numbers and within 30 mins had debt cards and bank account numbers, even transferred some funds from my account into theirs and voila, we go once every two months to deposit coins and bills they get from gift money, pretty neat and its good to teach them financial literacy at a young age
I opened savings accounts for my 3 kids at Scotiabank ("Getting There" youth accounts) a number of years ago... back then one requirement was that they offered a physical bank book (at no extra cost), and Scotia was one of the few that had this. I now realize this was very old-school thinking of me, thinking that having a visible log of their money would help build financial literacy. In practice, my kids just care about their balance, which I can show them in the app.

I do track allowance, gifts, etc. at home with a little log book that the kids can access at any time, and I periodically e-Transfer the funds into their accounts for them (also, relatives can e-Transfer directly into their accounts as well, which is added convenience). Unfortunately the tangible aspect of financial literacy (and therefore much of the sense of value) is lost in this day and age (despite having money jars at one point, and trying to get them to appreciate saving coins/bills... but even for them that became a nuisance!).

Sadly, one of the most important lessons in financial literacy (that I learned early in life) -- the power of compound interest -- has also gone away in this era of low interest rates! The 0.05% rates get them pennies (a huge contrast to when I could get 8-10% on my savings, as a kid of the 70s/80s).

One account that I wanted to open for my kids is at Innovation Credit Union (based out of Saskatchewan), because they "... pay $5 cash every 3 months to youth ages 18 and under." (ref: https://www.innovationcu.ca/Personal/Me ... ainContent, under the "How Do I Earn?" section). Interest rates are low (0.10%) but at least the kids would get some perk for parking their money there. However, I was disappointed when we found out we couldn't open accounts (unlike ICU's no-fee chequing accounts which are open to anyone 18+ in Canada by applying online) without physically being at a branch (in SK) to sign documents.

Does a "high interest" instrument even exist for kids/youth anymore? It seems like this would be a good investment for banks/CUs, since it has a good chance of building loyalty and brand recognition. For example, my sister's first bank account as a child was with BMO, and to this day she banks exclusively with them, some 30+ years later.
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Dec 5, 2006
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CalgaryBen wrote: I opened savings accounts for my 3 kids at Scotiabank ("Getting There" youth accounts) a number of years ago... back then one requirement was that they offered a physical bank book (at no extra cost), and Scotia was one of the few that had this. I now realize this was very old-school thinking of me, thinking that having a visible log of their money would help build financial literacy. In practice, my kids just care about their balance, which I can show them in the app.

I do track allowance, gifts, etc. at home with a little log book that the kids can access at any time, and I periodically e-Transfer the funds into their accounts for them (also, relatives can e-Transfer directly into their accounts as well, which is added convenience). Unfortunately the tangible aspect of financial literacy (and therefore much of the sense of value) is lost in this day and age (despite having money jars at one point, and trying to get them to appreciate saving coins/bills... but even for them that became a nuisance!).

Sadly, one of the most important lessons in financial literacy (that I learned early in life) -- the power of compound interest -- has also gone away in this era of low interest rates! The 0.05% rates get them pennies (a huge contrast to when I could get 8-10% on my savings, as a kid of the 70s/80s).

One account that I wanted to open for my kids is at Innovation Credit Union (based out of Saskatchewan), because they "... pay $5 cash every 3 months to youth ages 18 and under." (ref: https://www.innovationcu.ca/Personal/Me ... ainContent, under the "How Do I Earn?" section). Interest rates are low (0.10%) but at least the kids would get some perk for parking their money there. However, I was disappointed when we found out we couldn't open accounts (unlike ICU's no-fee chequing accounts which are open to anyone 18+ in Canada by applying online) without physically being at a branch (in SK) to sign documents.

Does a "high interest" instrument even exist for kids/youth anymore? It seems like this would be a good investment for banks/CUs, since it has a good chance of building loyalty and brand recognition. For example, my sister's first bank account as a child was with BMO, and to this day she banks exclusively with them, some 30+ years later.
I feel the most important lessons for them is they have to contribute something to get money, not just sit in front of TV and asking Switch

Compounding effect or whatever is no impact on their life since parents are the ones who pay, so I doubt they will learn anything from it
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Jonavin wrote: What's the best options these days for Kids/Youth accounts?
Hey Jonavin, I found your thread while doing similar research -- did you find a good product in the end? Would appreciate it if you could share.

I am hoping to find a youth account for my 15YO with debit card access. Did some preliminary research but couldn't find any.
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