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First bank account for teenager

(5 Posts)
Frocklet Wed 31-Dec-14 15:11:22

Just turned 16 yrs old. Probably about time to set him up with a bank account. Would you just go to your own bank and set one up, or are there specific things to bear in mind for this age group. He is not working or in support of any grants just at the moment.

Any pointers?

43percentburnt Wed 31-Dec-14 15:22:24

Under 19 account from lloyds pays 2.5% interest.

When I opened bank accounts for dd at 13 I was named on them and I was credit searched. No a big problem and at 16 this may not be required but remember to consider it if you want to apply for credit yourself in the next 12 months as too many credit searches count against you.

43percentburnt Wed 31-Dec-14 15:24:26

Also I would look at opening an isa too, it may encourage him to save a little. National savings had a good isa rate recently.

Frocklet Wed 31-Dec-14 15:24:54

Thanks for the warning. It never crossed my mind that I'd need to be credit searched for someone else's account.

roisin Wed 31-Dec-14 16:20:37

Mine have had accounts with Lloyds since they were 11 or 12. They're 15 and 17 now.

Do check the terms: mine do have a cash card, but they can't go overdrawn.

Also, if he's not used to budgeting, make sure you clarify your rules/guidelines with him. Any type of card can be used on the internet - amazon, itunes, Steam, whatever. So it's very tempting to go mad.

I gave mine a monthly standing order including their bus fares, lunch money and pocket money (so quite a substantial amount) and told them they had to budget. If they ran out of cash, they'd be walking to school and eating bread and water! They are both really sensible and use their money wisely.

At first, I told them they had to check with me before buying something on the internet; but I soon dropped this as they both demonstrated they wouldn't do anything daft.

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