How can a minor get a bank account?I am a 16 year old male who has just finished High School, looking to go onto college. I am working at a law firm, and am getting paid some good money for my age and experience. Lately, I have been been thinking about college money and want to set aside some ,so I don't have to be in a deep hole right away. I... |
Most banks will allow a minor to opening a savings account-that will allow you a place to deposit your checks and keep your money safe. Most banks will allow you to open a checking account only with a parent on the account with you. You should check with your local banks and find out their policy.
A credit card you have to apply for, go through a credit check and get approved. Then you make purchases on the card and you get a monthly bill. If you don't pay your monthly bill in full, you are charged interest on the amount you don't pay.
A card you get with your bank account is a debit card. It has a visa or mastercard logo on it so it allows you to make purchases at the store or online. But instead of getting a monthly bill for the purchases you make with card, the money is directly taken from your checking account so you can only spend up to the amount of money you have in your account.
Hope this helps!
Since the bank account part has been answered, let me clear up one little misconception you have. You say you don't want to have credit at your age. Actually, you do want to start building credit now; you just don't want to use your credit card much.
Establishing credit is a wonderful thing to do since it will help you not only get loans but often get better rates on loans and even car insurance. I say get the credit card (my credit union offers a course for high schoolers: pass the test, have parental approval, get the card) buy something you can afford anyway, pay it off immediately, and put the card away for six months. Lather, rinse, repeat.
Keeping an open card for a long time will do amazing things to your Beacon score - the score that the credit reporting agencies use. See, folks are most likely to abuse accounts when they're not tied to the institution. Open one checking account, rip us off for sixty days, and move on. That's the pattern. If you establish yourself as a trustworthy individual now, you'll have fewer problems depositing those student loan checks - though I nearly guarantee the first one will have a hold.
I really wish schools would teach this kind of stuff to students. I asked the same questions that you asked, worst is that I didn't even know how to use an ATM. Anyway, KC gave a lot of great info. I would just add that some banks have student programs that you don't have to pay a monthly fee. Just like anything you purchase, always shop around and ask the banker for a fee schedule so that you can make comparisons. Good Luck.
