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Many of our financial habits we learn as children. Learning about how to save and how to budget are important to building the strong financial foundations that can carry you into adulthood.

According to Policygenius, nearly 63% of parents are teaching their children about allowances, budgeting and even the importance of some bank accounts — and your kid doesn’t even need to be 18 before they can have their own bank account and start taking a hands-on approach to learning about money.

Currently, new customers can receive $25 when they open a new Chase First BankingSM account. It’s a debit card meant for kids ages 6–17 and parents won’t have to worry about their teen racking up any service fees. This welcome offer runs until Sept. 2, 2021.

Here’s what you need to know about the Chase First BankingSM account.

Chase First Banking Review

Chase First Banking℠

Information about Chase First Banking has been collected independently by Select and has not been reviewed or provided by the bank prior to publication. Chase Bank is a Member FDIC.

  • Monthly maintenance fee

    $0. You must be an existing Chase customer to open the account for your child(ren) ages 6 to 17.

  • Minimum deposit to open

  • Minimum balance

    No minimum balance requirement

  • Annual Percentage Yield (APY)

  • Free ATM network

  • ATM fee reimbursement

  • Overdraft fee

  • Mobile check deposit

Pros

  • Top-rated mobile app
  • No minimum deposit to open an account
  • No monthly service fee
  • No fees at 16,000 Chase ATMs
  • New account holders can earn a $25 bonus (through 9/2/21)
  • No. 2 on J.D. Power’s 2019 U.S. National Banking Satisfaction Study

Cons

  • No APY
  • $100 ATM limit at Chase and non-Chase ATMs
  • Parents must already be Chase customers to open an account

Chase First Banking APY

Access to your cash

Even though the debit card will have the child’s name on it, the Chase First BankingSM account must be opened under a parent’s existing Chase checking account, including the Chase Secure CheckingSM, Chase Total Checking®, Chase Premier Plus CheckingSM, Chase SapphireSM Checking, Chase Better Banking®, Chase Premier CheckingSM, Chase CheckingSM or a Chase Private Client CheckingSM account. Children and parents will be able to download the mobile app to have access to their account details.

Parents will also be able to set limits on how much their teen can spend on certain things, like $25 on restaurants and $40 on shopping. This feature lets parents help their kids get comfortable with the idea of budgeting. And if your kid needs to withdraw money, they can do so easily at any Chase ATM without paying a fee — parents can even set a limit on how much money their child can withdraw.

Parents will also be able to set up alerts so they can be notified about what purchases their teen makes. And if a child needs to request additional spending money, parents will be able to deny or accept the request all through the app.

In addition to the debit card features of the account, kids can also use the app to set savings goals and start putting money toward them. The app doesn’t pay interest on any money saved or deposited, so if you’re looking for an account that’ll let your child earn some interest on their balance, you might consider a high-yield savings account. Ally Bank offers an account with a 0.5% APY and no minimum balance requirement. And, it has a “savings bucket” feature that lets users create different buckets for different savings goals.

Ally Bank Online Savings Account

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

    No monthly maintenance fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

  • Excessive transactions fee

  • Overdraft fees

  • Offer checking account?

  • Offer ATM card?

    Yes, if have an Ally checking account

The Chase First BankingSM app also makes it easy for parents to transfer money to their child’s account so they can quickly get paid for, say, completing all their chores for the week. Recurring transfers can also be automatically set up for parents who want to give their kids a regular allowance.

Chase First Banking does not allow for direct deposits and does not support peer-to-peer transactions, including services like Zelle, Venmo, PayPal, or Cash App. Additionally, the account’s debit card cannot be added to fund these types of transactions.

Deposits cannot be made at ATMs, and account users will also only be able to withdraw up to $100 from ATMs per day.

Perks

Fees

There are no monthly service fee when using the Chase First BankingSM account. This way, neither you nor your child has to worry about maintaining a certain minimum balance at all times.

There aren’t any overdraft fees, so you won’t have to worry about seeing a charge on your child’s account if they accidentally spend more than they have. Just be aware that when withdrawing money from an ATM, there will be a $2.50 surcharge if withdrawing money from a non-Chase ATM.

Bottom line

*Interest rates are variable and subject to change

Information about the Chase First Banking, Chase Better Banking, Chase Premier Checking, Chase Checking, Chase Private Client Checking, Chase Premier Plus Checking, and Discover Cashback Debit Account has been collected independently by CNBC and has not been reviewed or provided by the bank prior to publication. Chase Bank is a Member FDIC.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

https://www.cnbc.com/select/chase-first-banking-account-review/