Both accounts let your child hold money at a bank or credit union
A checking account and a savings account are both places where a young person can deposit money and have it stay safe. Both are held at a bank or credit union. Both come with a debit card or passbook so your child can see their balance. Both accounts are insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration) up to $250,000, which means if the bank fails, the money is protected.
The main difference is what the accounts are built for: checking is for money you use regularly, and savings is for money you want to keep. But the similarities matter more when you're starting out, because both teach the same core lesson — that a bank holds your money safely and keeps a record of it.
Key Takeaways
- Both checking and savings accounts are FDIC or NCUA insured, so your child's money is protected up to $250,000 even if the bank fails.
- Both accounts require a parent or guardian to co-sign or co-own the account until the child reaches the bank's age requirement, usually 18.
- Both accounts show a running balance so your child can see exactly how much money they have at any time.
- Both accounts charge no monthly fee at most banks and credit unions that offer youth accounts.
- Both accounts report to credit bureaus in some cases, which means responsible use can help build your child's credit history early.
Both require a parent or guardian to open and manage the account
A child under 18 cannot open a bank account alone. Both checking and savings accounts for minors require a parent or guardian to co-own or co-sign the account. This means the adult's name is on the account, the adult can see all transactions, and the adult is responsible if the account goes negative or if fees are charged.
The parent or guardian typically needs to bring a photo ID, proof of address, and the child's Social Security number to open the account. Some banks allow the parent to open the account online if they already have an account at that bank. The process is the same whether you're opening checking or savings.
Both show your child their balance in real time
With either account, your child can check how much money they have at any moment. Most banks offer online banking or a mobile app where the balance updates immediately after a deposit or withdrawal. Some accounts still use a paper passbook that gets stamped at the teller window, though this is less common now.
This real-time visibility is one of the strongest teaching tools both accounts offer. When a child sees their balance drop after spending money, or grow after depositing their allowance or earnings, the connection between money in and money out becomes concrete. Both account types make this visible in the same way.
Both accounts typically have no monthly fees for youth accounts
Most banks and credit unions waive monthly maintenance fees on checking and savings accounts opened for minors. This is true whether the account is checking or savings. The bank's goal is to build a relationship with a young customer who may stay with them for decades.
Some banks do charge fees if the account falls below a minimum balance or if the child makes too many withdrawals in a month, but these rules apply equally to checking and savings youth accounts. Always ask the bank about fees before opening an account, because they vary by institution.
Both can help build credit history if the bank reports to credit bureaus
Not all banks report youth account activity to credit bureaus, but some do. When a bank reports, responsible use of either a checking or savings account — keeping the balance positive, not overdrawing, maintaining the account over time — can start building your child's credit history years before they apply for a credit card or loan.
This is one of the less obvious similarities: both account types can serve the same credit-building purpose. A child who opens a savings account at age 10 and keeps it active and in good standing may have a credit score by age 16 or 17, which gives them a head start when they apply for their first credit card or car loan. Ask your bank whether they report youth account activity to the three major credit bureaus (Equifax, Experian, and TransUnion).
Both accounts teach the same money habits
Whether your child uses checking or savings, the account teaches the same foundational habits: depositing money safely, tracking a balance, understanding that banks charge fees for certain actions, and seeing money grow over time. Both accounts make money tangible in a way that a piggy bank does not.
Many families open a savings account first to let a child get comfortable with the idea of a bank account, then add a checking account with a debit card once the child is older and ready to make purchases. But the learning that happens in each account is similar — the child learns that banks are trustworthy, that their money is tracked, and that they have control over it.
Frequently Asked Questions
Can my child have both a checking and savings account at the same bank?
Yes. Many families open both at the same time or add a checking account later. Having both lets your child use checking for everyday spending and savings for money they want to keep. The parent or guardian co-owns both accounts and can monitor both from one online login.
Do I need to be present to open an account for my child?
It depends on the bank. Some banks let you open a youth account online if you already have an account there and can verify your identity. Others require you to visit a branch in person with your child, your ID, proof of address, and your child's Social Security number. Call ahead to ask what your bank requires.
What happens to the account when my child turns 18?
Most banks automatically convert the account to a standard adult account. Your name may stay on as a co-owner, or you can remove yourself and let your child own it alone. The account number and balance stay the same. Ask your bank about their conversion process before your child turns 18.
Can my child lose money if the bank fails?
No. Both checking and savings accounts are insured by the FDIC (at banks) or NCUA (at credit unions) up to $250,000 per account holder per institution. If the bank fails, your child's money is protected and will be returned to them.
Do youth checking and savings accounts charge overdraft fees?
Some do and some don't. Many banks that offer youth accounts turn off overdraft protection to prevent surprise fees. This means the debit card will be declined if there's not enough money, rather than charging a fee. Always ask the bank about their overdraft policy before opening an account.