Bank accounts for teenagers are current accounts specifically designed for 11 to 17-year-olds. 

Unlike children's bank accounts, which usually require an adult to open the account for the child, most banks allow teenagers to open their own accounts if they're at least 16 years old.  

Once you’re 18, you can switch to a standard bank account designed for adults. A teen bank account is a helpful stepping stone between a child's account and a teenager bank account because it offers a bit more freedom and helps to build confidence for managing an adult current account.

The main difference between standard accounts and teen accounts is that even the best teenager bank accounts don't offer overdrafts because you have to be at least 18 years old to be eligible to take out any form of credit. 

Opening a bank account introduces teenagers to the practical aspects of money management. It provides them with a platform to learn about income, expenses, and budgeting. And by making regular deposits, withdrawals, and tracking their account balance, they develop essential financial skills that will serve them well throughout their lives.

By experiencing first hand how their financial decisions impact their account balance, teenagers can make mistakes in a controlled environment. These learning opportunities can be invaluable as they prepare to handle more significant financial responsibilities, such as paying for university life or managing their own household.

Application processes vary slightly between banks but will broadly have the same steps and document requirements.

Teenagers who are 16 or older can open most accounts themselves. You can open some accounts yourself from the age of 13. You’ll need to:

1. Apply online, providing proof of ID, such as a UK passport, and usually proof of address, such as a letter from your school or a bank statement from an existing account. You might be asked to provide evidence of your address for the last three years

2. If your identity can’t be verified online, go into a branch with your identity and proof of address documents

3. If you don’t have your own documents that can prove your identity, you may need to apply with a parent or guardian using theirs

Some accounts let you apply in a branch if you prefer. In some cases, you’ll still need to apply with a parent or guardian if you’re 16 or over.

If you’re under 16, you’ll usually need to apply with a parent or guardian in a branch or start the application online and then go to a branch with them. They may need to show their own proof of identity and address documents. With some banks, your parent or guardian will need to have a current account with them for you to apply for an account.

Teenage bank accounts designed for 11 to 17-year-olds have many of the same features you see in bank accounts for over-18s, although some may only become available once you reach a certain age. 

The things you can do with most teen accounts include:

• Deposit money into the account, including wages, money from other people sent by bank transfer, cheques, and cash

• Pay by debit card in person, online or by phone, or make contactless payments using your mobile phone in person

• Withdraw money at a cash machine using your debit card or a cash card

• Set up automatic payments like direct debits and standing orders to cover bills

• Manage your account online through your bank's website, mobile app, or telephone banking

Bank accounts designed for teenagers offer various protections and features to allow young individuals manage their finances while protecting their financial wellbeing. Common protective features associated with teen bank accounts include:

Parental oversight: Many teen accounts require parental or guardian consent and involvement. Parents or guardians typically have access to view the account, set spending limits, and provide guidance to ensure responsible money management.

Age-appropriate access: Teen accounts are tailored to the age of the account holder, ensuring that the features and access provided are appropriate for their stage of financial development.

No overdrafts: Teen accounts do not allow overdrafts, which means the account holder can’t spend more money than is available in the account. This prevents the accumulation of debt and interest charges.

Financial education: Some teen accounts include financial education resources to help young account holders learn about budgeting, saving, and responsible money management.

Bank accounts

Bank accounts offer teenagers access to a broader range of financial services and tools than they would get with a prepaid card. With a bank account, they also gain exposure to more advanced financial concepts, such as paying bills and saving up for a big-ticket item. 

However, bank accounts often have more fees and minimum balance requirements than prepaid cards, which can be challenging for teenagers who may not have a stable income.

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