11-16 Bank Accounts

[trumpet]

I was very shocked yesterday to learn that my 11 year old can open a bank account without me having any knowledge of it. Okay he would need his birth certificate or passport. But , the fact that this account comes with a card that can be used in exactly the same way as mine shocked me a bit and the fact that armed with a piece of ID I didn't even need to be there or to sign anything on his behalf. He could do it all himself. What are your views?

[mitasol]

When my DS turned 11 he could open a bank account with a cash card on his own but needed a parent to consent to get a debit card. Perhaps the rules have changed?

[hermanmunster]

under 18 year olds cannot be given credit so the only account they can have will either be a cash card or a debit card.

basically if there is no money in the account then they can't spend anything.

I certainly didn't have to sign anything for DS at 16 opening a bank account - they just required rather less ID as we had 4 accounts with the back anyway - in some ways I am pleased to hear that they are treated teenagers like adults.

[Sassie'sDad]

I agree with Hermanmunster. The sooner they learn to be responsible with money/bank accounts the better. If they are not given an opportunity to learn before being offered credit it seems they can hardly fail to make mistakes.

[trumpet]

I guess your right but it just seems very out of place for 11 year olds to be using ATMs. But we've got pretty used to them having mobiles.

I think I just found it odd that in theory he could have a bank account that I didn't even know about.

[wonderwoman]

3 of our DC have these types of account. I think they're great - they can't get credit so must have money in the account. We pay them an allowance each month, directly into their account, and they have to sort out lunch money etc. One has built up quite a balance, another has found it difficult and regularly has nothing left at the end of the month, but does have lovely shoes
They were warned not to use their cards for internet shopping as the are debit rather than credit cards and don't have the same insurance.
I prefer than to have a card when they are shopping rather than a pocketful of cash - lost more times than I can remember.

[hermanmunster]

Kids have been used to automatic petrol pumps, remote controls, ATMs, computers, mobile phones etc etc since the year dot.
I, on the other hand, have had to get used to each bit of tech as it was invented.

re not knowing about the account, I think that if there was a lot of money in the account ... perhaps from parents, then you would be liable for tax on the interest. A child only has personal allowance if the money is from sources other than the parents, otherwise only the first £100 is tax exempt and so the parents would have to know to ensure that they coughed up to HMRC

[trumpet]

This is first time round for everything for me so I get shocked quited frequently. I'm sure it will all feel very normal by the time I get to n03.

I do definitely take the point about understanding banking before they get offered credit. I got my first credit card at 18 and was pretty typical. I also had some lovely shoes.

At what age did you start letting them sort out own lunches and bits and bobs?

[Gman]

To encourage good money management you could suggest they open a savings account and that they transfer a percentage of their allowance/gifts etc into it.

[doodles]

Thanks for telling me about these accounts. I think it is a great that my DS can have a cash/debit card and I will certainly be opening such an account for him. Nice to know that he will be able to start having control of his money. He has never had call to need money when I haven't been there but now he will be travelling quite a way every day to and from school good to know that should he lose a travel pass etc he will be able to buy ticket etc.

I know advertising is not allowed but I assume that these accounts are available from the major high street banks and building societies?