How to create a bank account

Are you between the ages of 11-15?

To open up a bank account, all you will need is a parent/guardian and your ID (which includes your passport, your national identity card or birth certificate) Lastly, you will need the money you want to deposit into the account.

Opening a bank account as a teenager can be a great way to learn financial responsibility and start building a credit history. Here is a step-by-step guide to help you get started:

Tip #1 - Decide how much money you would like to put into the account.

A lot of banks will require a minimum deposit amount, this number will vary between banks. For a children's account, this will commonly be a two-digit number. It is recommended to regularly add money to your bank account. An advantage of putting your money in the bank, other than to protect it, is to gain interest from it.

Tip #2 - Be careful of the fees

Unfortunately, a lot of banks these days choose to implement more fees and penalties for services that used to be free. For this reason, you must read the terms and conditions to find out what is free and what is not. Don't hesitate to ask the person at the bank questions.

"I trust online banking. Do you know why? Because if somebody hacks into my account and defrauds my credit card company, or my online bank account, guess who takes the loss? The bank, not me."- Kevin Mitnick

Tip #3 - Don't be enticed by the free stuff

Banks will always try to persuade customers to join them using promotions and special deals. Whilst these rewards may seem impressive, in the long term they will not be worth it.

Tip #4 - Find the nearest ATMs

Despite cash becoming less relevant, it is always good to have some. Therefore, there must be at least one ATM near your home, and one near where you spend a lot of time (school, work, sports centre, etc.)

Tip #5 - Consider "Online-only" bank

If you are someone that would be considered 'tech-savvy' then you may want to consider having an online-only bank, as these will offer fewer fees. A good online bank to have would be Revolut, as they also come with many rewards, a parent app, a physical card and very good customer service.

Tip #6 - Get used to the concept of your money sitting still

Whilst the thought of leaving your money away from you, and not being able to see it or touch it physically can be difficult to get used to, you must get used to it. This will also enable you to save up more money, without constantly spending it.

Tip #7 - You don't have to stick to your bank!

As a teenager, you can create a bank account and begin laying a solid financial foundation by following these steps. Always keep an eye on your account balance and use your account responsibly.

If you ever encounter an issue with your bank or are unsatisfied with their customer service, there is nothing stopping you from withdrawing your funds and switching to a different account.

Bibliography

• Babaee, A. (2022) How to get a bank account for under 18s, Take control of your money - Compare credit cards, loans, mortgages & more. Available at: https://www.money.co.uk/current-accounts/how-to-get-a-bank-account-for-under-18s (Accessed: January 16, 2023).

• PYMNTS.com (2019) How ach business payments pave the way for US open banking, ACH Payments Pave The Way For US Open Banking | PYMNTS.com. PYMNTS.com. Available at: https://www.pymnts.com/news/b2b-payments/2019/how-ach-business-payments-pave-the-way-for-us-open-banking/ (Accessed: January 17, 2023).