The 11 Best Bank Accounts for Kids in Canada

The best bank account for kids is specifically designed for youngsters under a certain age and provides essential features like no monthly fees, no minimum balances, lots of free transactions, and a debit card. Ideally, you want an account that also pays interest and offers rewards. The right kid’s account should also have the tools to teach your child how to plan, budget, and save toward their goals.

At the same time, you also want access to financial literacy resources to set them up for long-term success. This type of account is an important first step in your child’s journey to a healthy relationship with money, but it’s typically one the parent makes. Let’s explore the best bank accounts for kids in Canada and how to choose the right one for your child.

The Best Bank Accounts for Kids in Canada

1. Mydoh: Best bank account for kids with chores

Monthly Fee: $2.99/month
Interest: None
Rewards: None

Mydoh is one of the best bank accounts for kids because it provides a unique tech-centric approach to teaching your children about financial literacy and the value of a dollar. RBC backs the service and combines an app with a prepaid card. The app allows parents to set up tasks and chores for their children with corresponding payments paid out on a weekly “Pay Day.” Parents can also set up an automatic weekly allowance.

When kids complete tasks or receive their allowance, the money is transferred to their Mydoh digital wallet. Parents have full access to their child’s transaction history while kids have autonomy over their spending choices and savings goals. They also have access to age-appropriate resources to help them master financial literacy like blogs, quizzes, calculators, etc.

A major downside: It costs $2.99 a month their balance doesn’t earn any interest. As such, MyDoh should be used in combination with a high-interest savings account to ensure your child doesn’t lose out on the value of compound interest.

2. Tangerine Children’s Savings Account: Best bank account for kids with savings goals

The Tangerine Children’s Savings Account is available to kids under the age of 11, but you’ll need to open your own Tangerine account first before you can open an account for your child. Not only is Tangerine one of the best online banks in Canada, but it’s also the best bank account for kids with a savings goal. That’s because it offers a high interest rate of a whopping 1.10% and unlimited transactions but does not come with a debit card.

Therefore, we suggest opening this account in addition to a kid’s chequing account elsewhere. It’s important to note that all banking with Tangerine is conducted online because there are no physical branches, and the account can only receive e-Transfers but cannot send them.

3. Scotiabank Getting There Savings Account: Best bank account for kids who love movies

Monthly Fee: None
Interest: up to 0.10%
Rewards: up to 1 Scene+ Point/$1 on eligible purchases

The Scotiabank Getting There Savings Account is intended for children under 19. Afterward, it switches to a student account if you can prove enrollment in a post-secondary institution. 

The account provides a debit card and free unlimited transactions, including Interac e-Transfers. Additionally, your child can earn Scene+ rewards on their debit card purchases which they can redeem for things like free movie tickets, shopping, dining, travel, and more. They’ll earn 1 point per dollar spent at Cineplex, and 1 point per $5 spent on all other eligible purchases.

However, like some other accounts, its interest rates are relatively low, ranging from 0.05% for balances up to $499.99 up to 0.10% for balances above $500.

4. TD Student Chequing Account: Best bank account for kids who love cake pops

Monthly Fee: None
Interest: 0.01%
Rewards: 50% more Starbucks Rewards

The TD Student Chequing Account is available to youth under 23. However, you can keep this account after 23 by showing proof of enrollment in a post-secondary institution. 

The account includes a debit card and offers free unlimited transactions, including Interac e-Transfers. A notable advantage is earning 50% more Starbucks Stars when the debit card is linked to a Starbucks Rewards account.

5. CIBC Smart Start Account: Best bank account for kids who like to shop

Monthly Fee: None
Interest: None
Rewards: Free SPC+ Card (kids over 14)

The CIBC Smart Start Account is a youth account for children under 13, transitioning to a student account from ages 13 to 24 until they complete their post-secondary education. Some of its advantages include no monthly fees until the of age 25. If they are still a student at that time, it remains free.

The account offers a debit card and free unlimited everyday transactions such as debit card purchases, withdrawals, Interac eTransfers, bill payments, and one free non-CIBC ATM withdrawal per month in Canada.

Students over the age of 14 can receive a free SPC+ membership, providing discounts at select retailers. Additionally, users can save up to 10 cents per litre on gas at stations participating in the Journie Rewards program.

6. Canadian Western Bank Youth Account: Best Bank Account for Kids in Western Canada

Monthly Fee: None
Interest: up to 0.50%
Rewards: None

The Canadian Western Bank Youth Account is designed for children under the age of 18 and transitions to a student account when they turn 19, lasting until they complete their post-secondary education. This account comes with a debit card and offers free unlimited transactions including Interac e-Transfers and up to 0.50% interest on deposits, depending on the balance.

Users can access over 3,000 ATMs across Canada through THE EXCHANGE Network. However, one limitation is that its branches are primarily located in western Canada, with a limited presence in Ontario and no branches further east. As such, there may be difficulties with opening and accessing this account in eastern Canada. Furthermore, using non-Canadian Western ATMs incurs a $1.50 charge.

However, the account’s interest rate is relatively low at just 0.01%.

7. Meridian Credit Union Youth Savings Account: Best Bank Account for Kids in Ontario

Monthly Fee: None
Interest: 0.50%
Rewards: None

The Youth Savings Account is tailored for children under 18. This account includes a debit card and unlimited free transactions, though there’s a $1.50 fee for sending e-Transfers. Receiving money, on the other hand, is free. The interest rate stands at a modest 0.05%.

With Meridian, users benefit from over 43,000 surcharge-free ATMs throughout North America, ensuring easy and secure fund access.

One limitation is that Meridian’s branches are exclusively in Ontario. However, their subsidiary Motusbank offers banking services to all Canadians except Quebec residents.

8. Servus Credit Union Youth Plan: Best Credit Union Bank Account for Kids in Alberta

Monthly Fee: None
Interest: 0.10%
Rewards: Profit Share Rewards Cash

The Servus Credit Union Youth Plan 60 is a prime choice for those under 17 desiring a fee-free daily banking solution. Kids under 12 will need a parent’s signature to obtain a debit card.

This account provides 60 complimentary electronic or in-branch transactions monthly and unlimited Interac e-Transfers. However, a $1.25 fee applies for transactions beyond this limit. The plan also includes one free non-credit union ATM monthly withdrawal within Canada. The interest rate is set at a modest 0.10%.

One thing we love about this bank account for kids is the Profit Share Rewards Cash program. Your child can earn a share of the credit union’s annual profits in the form of cash back based on the average balance of their bank account. Profit sharing is one of the best parts of banking with a credit union, and this can incentivize your kids to save – because the more they save the more they earn.

Servus Credit Union branches are only in Alberta, which means you must be a resident there to open an account.

9. ATB Generation Account: Second Best Bank Account for Kids in Alberta

Monthly Fee: None
Interest: up to 0.10%
Rewards: None

The ATB Generation Account is designed for kids under 19. For those under 12, a joint account holder, usually a parent or guardian, is required to open an account. This bank account for kids comes with a debit card, offers unlimited transactions at no cost, and earns 0.10% on the balance.

While it is free to receive e-Transfers, you will be charged $1.50 to request money via e-Transfer. Furthermore, you’ll only receive two free monthly ABM withdrawals outside the province. Afterward, you’ll need to pay $4.50 per withdrawal.

It’s important to note that ATB can only legally open bank accounts for Alberta residents.

10. Desjardins Everyday Account for Youth: Best bank account while attending a Canadian university (regardless of age)

Monthly Fee: None
Interest: 0.01%
Rewards: None

The Desjardins Everyday Account for Youth is targeted at children under 18. However, the account will remain free until the age of 25 if your child is enrolled in post-secondary study. A nice perk of this account is that it will be free anytime regardless of age if they are enrolled full-time at a Canadian university. The account comes with a debit card and offers free unlimited transactions, including Interac e-Transfers. 

However, one limitation is that its branches are primarily located in Quebec. This can provide difficulties with accessing the Youth account in other provinces. You get free access to about 2,000 ATMs across Canada that are part of the AccuLink® ATM Network. But non-Desjardins ATMs will incur a $1.50 charge within Canada. As such, this account is not ideal for those outside of Quebec. 

11. Vancity Chequing Plus Account: Best Credit Union Bank Account for Kids in BC

Monthly Fee: None
Interest: None
Rewards: None

The Vancity Chequing Plus Account is tailored for young people under 25. It offers unlimited transactions at no charge. However, Interac e-transfers are a different story. While you can receive e-Transfers for free, there is a $0.90 fee to send and request money via e-Transfer. You also get access to over 4,000 ATMs nationwide via THE EXCHANGE and ACCULINK® Networks. Using ATMs outside these networks incurs a $2.00 fee per transaction.

Banking with Vancity comes with special discounts from partner businesses in the community. On the downside, this account does not earn any interest.

To open this account, you must live in BC and deposit $5 upon account opening as a membership share.

What is a Bank Account for Kids, and How Does it Differ from Standard Accounts?

A kid’s bank account, often referred to as a youth, child, or minor account, is specifically designed for children below a certain age. These accounts are structured to introduce kids to the world of banking and finance in a manner suitable for their age and financial needs. After all, not many kids are earning income or paying household bills. the parents or guardians manage it, allowing the child to participate in day-to-day transactions with parental approval.

With kid’s bank accounts, the primary focus is on developing financial literacy and less on financial optimization. The goal is to instill financial responsibility and money management skills through practical experience and incentives while also teaching the importance of goal-setting and creating savings habits from an early age.

But when it comes to actual features, how does a bank account for kids stand out from standard adult accounts? Here’s what sets them apart:

Age Restrictions

Most bank accounts for kids have age limitations, generally catering to kids and teenagers under 18. Once your child exceeds the maximum age, these accounts might automatically convert to a either standard adult account or a student account if your child chooses to enroll in post-secondary education.

Parental Oversight

Kid’s accounts often require parental or guardian consent to open. Moreover, many allow parents to monitor the account activities, ensuring children are making sound financial decisions. Having said that, many banks allow kids to open an account on their own once they reach a certain age, typically anywhere from 11-14 years old.

Minimal or No Fees

Kids have a much more limited financial capacity than adults. Therefore, most banks offer accounts for kids with no monthly fees or provide ways to easily waive them. The best bank accounts for kids typically also include unlimited day-to-day transactions like debit card purchases, e-Trasnfers, ATM withdrawals, etc. rather than imposing a monthly cap on the number of transactions.

Lower Minimum Balance Requirements

To accommodate the smaller sums kids are likely to save, these accounts often have low or no minimum balance requirements. That means they can take advantage of perks like free transactions and interest on deposits without having to maintain a certain balance.

Educational Components

Banks often add educational tools to kids’ accounts. These can include online games, quizzes, workshops, or simple tutorials about money management, aiming to boost the child’s financial literacy. MyDoh stands out as one of our favourite bank accounts for kids because it offers the best financial education tools and resources designed specifically for kids and teens.

Savings Incentives

Some kids’ bank accounts offer higher interest rates than standard savings accounts to encourage saving, like the Tangerine Children’s Savings Account which offers the highest rate of all the banks on our list at a whopping 1.10% at the time of writing. Others might include rewards for saving, like the Profit Share Rewards Cash program at Service Credit Union.

Limited Features

To keep things simple and safe, many kids’ accounts limit certain features like overdrafts, check-writing abilities, virtual cheque deposits, or bill payment transactions. Some might limit in-branch transactions and instead offer free unlimited online and self-serve transactions.

Joint Account Option

Many banks offer the ability for parents to open a joint account with their child. In fact, most banks require a parent to open an account with their child if the child is under a certain age. This facilitates easy transfers between the parent’s account and the child’s and allows parents to keep an eye on their child’s spending and saving habits.

The Importance of Bank Accounts for Kids

If you want to raise money-smart kids, you need to start young. Developing a healthy relationship with money early on is crucial for financial stability in adulthood, but is all too often overlooked when preparing them for the real world. Here’s why you should open of the best bank accounts for kids today instead of tomorrow:

Laying the Groundwork for Financial Literacy

Introducing children to the world of banking builds their understanding of money, savings, interest rates, and the critical value of budgeting now, before the stakes are high – when financial blunders can take years to recover from.

With a bank account for kids, they not only learn theoretical concepts but also get hands-on experience in managing their finances. This immersive learning-by-doing experience lays a solid foundation for them, setting the stage for responsible money management as they grow.

Safety & Savings Habits

One of the undeniable benefits of a bank account for kids is the security it offers. For kids, having their money stashed safely in a bank account is far more secure than holding onto physical cash in a piggy bank. Furthermore, regular deposits, even in modest amounts, can instill a savings habit in children from a tender age, ensuring that they grow with a mentality geared towards smart financial decisions.

The Power of an Early Start

Children are inherently curious and sponge-like in their capacity to learn. When introduced to money management concepts at an early stage, they not only grasp them faster but also integrate them into their daily lives. This early immersion in banking teaches them the intrinsic value of money, fosters better math skills—particularly when dealing with interest calculations and budgeting—and readies them for the complex financial choices they’ll face in adulthood.

Financial Discipline Becomes Second Nature

It’s crucial to teach kids about money from a young age, not just for practical reasons but also to shape their perspective toward finances. Owning a bank account and managing their money fosters a sense of responsibility. They become more discerning in their spending decisions.

Additionally, a solid financial grounding during their formative years acts as a buffer, reducing the chances of them making financial blunders in adulthood. More than anything, knowledge and understanding of money can bolster their confidence, empowering them to make informed decisions and fostering a sense of control over their financial future.

Teachable Moments With a Bank Account for Kids

To truly harness the long-term positive impacts of a bank account for kids, there are several proactive measures parents can take. Start by making regular deposits, such as a portion of their allowance or special occasion gifts like birthday money. This not only boosts their savings but also ingrains the habit of setting aside money consistently.

Sitting down with your child to review their bank statements is another constructive practice. It serves as a real-world lesson in monitoring finances and understanding the ebb and flow of their savings.

Setting tangible savings goals can be a great motivator. Whether it’s saving up for a coveted toy or laying the foundation for their college fund, having a clear objective can fuel their motivation to save.

But beyond the mechanics of a bank account, it’s essential to help them develop a healthy and positive relationship between kids and money. Engage in open discussions about financial decisions every chance you get, explaining the reasons behind saving for a particular goal or the thought process before making a significant purchase.

The topic of money should not be taboo with your kids. It’s OK and recommended to discuss the household budget, what the family expenses are, how much you save, wants vs needs, etc. This transparency demystifies the world of finances for them and gives them a concrete example of what financial adulting looks like in the real world.

To further incentivize the savings habit, consider matching a percentage of what they save, making saving both rewarding and educational. Additionally, instill the value of philanthropy by encouraging them to donate a portion of their savings to charitable causes. This not only underscores the importance of giving back but also broadens their understanding of privilege and why they should invest in their local community.

How to Choose the Best Bank Account for Kids: A Guide for Parents

There isn’t really a single “best bank account for kids.” There’s only the best account for YOUR kids, and that depends on their needs and goals. We’ve listed 15 great options, but that’s a lot to choose from. How do you narrow it down to the right one for you and your child? Here’s a structured approach to guide you through the process:

Understand the Purpose

First, ask yourself what you aim to achieve with a bank account for your child. Is it just for savings? Do you want it to be an educational tool? Or perhaps a combination of both? Knowing your objectives will help narrow down choices.

Hold the Fees, Please!

Opt for accounts that have low or no monthly fees. Kids usually have smaller balances, and high fees could significantly diminish their savings. It’s also wise to look out for other hidden charges, such as transaction fees or penalties.

Interest Rates

While interest rates on kids’ accounts may not be the highest, it’s still beneficial to compare different banks. A competitive interest rate can be a motivating factor for kids to save. It also teaches them about the power of compounding. At the very least, you want an account with a good interest rate because it helps protect the value of their money against inflation – which is another crucial concept to teach them about.

Accessibility & Features

Consider if the bank offers online banking, mobile apps, or other interactive platforms tailored for kids. These tools can make the banking experience more engaging and educational. Also, think about the ease of making deposits or withdrawals. Are they able to deposit birthday cheques through an app, ATM, or just the branch? Is the account digital-only or are there physical branches?

Educational Resources

Some banks offer financial literacy resources specifically designed for kids—like workshops, online games, or tutorials. These can be invaluable in teaching kids about money management. The value of a bank account for kids that also offers a variety of engaging learning material cannot be overstated.

Parental Controls

For younger children, parental oversight is essential. Many bank accounts for kids offer features that allow parents to monitor and control the account’s activity, ensuring safety and guided financial learning.

Growth Potential

Look for accounts that can transition with your child as they grow. Some kids’ accounts may automatically convert into teen or student account, ensuring continuity in their banking journey as they acheive new milestones in their lives.

Reputation & Customer Service

It’s always wise to choose a bank account for kids that is well-known for its quality customer service. Especially when it comes to children, you’d want a bank that’s responsive and approachable should any issues or questions arise.

Personal Recommendations

Speak to friends, family, or other parents to gather personal recommendations. First-hand experiences can offer insights that you might not find in official bank literature.

Read the Fine Print

Before opening a bank account for your child, always read the terms and conditions. This will ensure you’re fully aware of any limitations, fees, or requirements associated with the account.

At a Glance: Features to Consider

How to Open a Kid’s Bank Account

Now that you understand Canada’s best bank accounts for kids, the next step is to actually open a bank account for them. This will provide them with valuable financial education and can assist them with establishing healthy savings habits. Here’s what to do:

Visit the branch or website: Depending on your child’s age, you must visit a branch. However, some institutions let you manage the process online. In general, you’ll need to follow these two steps;

I. Gather Documentation: To open an account, you will likely need documents like a birth certificate or your child’s Social Insurance Number (SIN). Depending on the institution and the type of account you choose, you may also need a driver’s license, passport or even proof of residence. 

II. Visit Your Chosen Financial Institution: Once your documentation is ready, visit your chosen financial institution with a parent/guardian, along with the necessary paperwork to open an account for your child. Most institutions require in-person signatures to open up a bank account for kids.

Credit Cards For Teens

It’s also worthwhile to consider opening a credit card for your child while going through the banking process. This builds a credit score at a young age which can help them reduce their interest rate on student loans, car loans, and even mortgages. Aside from this, it offers access to emergency cash while they are travelling or away from home.

Although your child needs to be at least 18-19 to receive their own card, there are some workarounds. This section will explain different options for receiving one of the best credit cards for teenagers.

a) Authorized Users

The best option is adding your teen to your existing credit card account as an authorized user. The downside is that this may not help build credit for your child, as not all credit card companies report on the authorized user’s credit file. It depends on the company’s reporting policy, which differs from one credit card company to the next. You’ll need to call them and confirm if authorized users can build credit history before ordering a supplementary card for your child.

If the credit card company does report to the authorized user’s credit file, this allows your child to use the card while benefiting from your responsible use and positive payment history on the account. As the primary cardholder, you can monitor their spending and teach your child how to use a credit card the right way.

However, setting clear expectations and establishing rules is crucial to avoid potential misuse and financial pitfalls that could impact your credit score. Even if they won’t build credit, they’ll still benefit from learning how to manage credit responsibly from a young age.

c) Joint Credit Cards

The next option is to apply for a joint credit card with your teen as the co-borrower. This will allow them to get their own credit card while still being held accountable and supervised by you as the main cardholder. Joint credit cards allow both parties to build credit – important for future loan applications and other financial opportunities. It will have a predetermined spending limit, and you (the parent) can monitor your teen’s spending and help them learn how to use it responsibly. However, one must be either 18 or 19 to be eligible as the primary cardholder of a joint credit card and there may also be age restrictions on secondary cardholders.

b) Prepaid Credit Cards

Finally, another option is to provide your teen with a prepaid credit card. Prepaid cards load a specific amount of money onto the card, which can be used for purchases. This option offers a controlled spending limit, allowing your teen to learn how to manage money within defined boundaries. 

Additionally, prepaid cards do not involve credit checks or risk accumulating debt, making them a safer option for building financial responsibility. However, reviewing any associated fees and terms is important, such as reloading costs and expiration dates. Prepaid cards also generally do not build any credit history but can still serve as a powerful tool in teaching your child about budgeting and money management.

Best Bank Account for Kids: The Bottom Line

When considering the best bank accounts for kids, it’s essential to prioritize financial education and cultivate responsible money management habits. These specialized accounts offer valuable opportunities for children to learn about budgeting, saving, and the basics of banking. 

As these accounts eventually evolve into student/adult accounts, it is essential to adopt a forward-thinking approach by comparing chequing accounts and comparing savings accounts at various banks where you intend to open a kids’ account. Moreover, several banks in Canada offer enticing high-interest savings accounts, which should also be taken into consideration down the road. By instilling financial literacy early and leveraging appropriate resources, we can empower our children to construct a robust and secure financial framework for their future.

FAQs About The Best Bank Account For Kids