If anyone else has children or young nieces and nephews itching to get a bank account with a debit card, you may have asked yourself this same question. Most of the “Big 5” Canadian banks offer some form of no-fee or low-fee bank account for children, often with the enticement of a debit card. They don’t expect to make money off that account. They expect your child to grow up and continue banking with them through the student loan, car loan, mortgage, RRSP and RESP years. That’s when they’ll make their money charging high fees and paying low or no interest on savings. I’d prefer my young relatives to start off with a bank that charges no fees so they can stick with it even as grownups. So I researched to find out how old my niece, for example, would have to be to open a Tangerine no fee chequing account from the company formerly called ING Direct and get her very first debit card.
Does the Tangerine ING Direct Children’s Bank Account Have a Debit Card?
I already knew that Tangerine has savings bank accounts for children. They pay a good reasonable interest rate.In May 2017 it’s 0.9%. In November 2013 it’s 2% per year. (Their savings account for adults pays only 1.35 %.) In June 2014, unfortunately, it’s down to 1.5% per year.
The account isn’t fully independent though. It’s actually a sub-account under one of the parent’s or guardian’s bank accounts. Money can only be transferred into and out of the child’s account from this adult’s account. There is no debit card for the young saver.
If you’re interested in opening this kind of account for your child, by the way, keep an eye out for special offers. I remember when we opened my children’s accounts they each received a $25 bonus just for depositing $100.
When Can A Young Person Open a Tangerine No Fee Chequing Account?
I couldn’t find the answer easily on the Tangerine website, so I wrote an email to their customer support team.
Within 24 hours (closer to 14!) they replied:
The minimum age requirement for opening a Chequing account is 16 years of age. If your child has a Children’s Savings Account (CSA) with us, when your child is 16 call us and we can convert it to a chequing account. We’re available 24 hours a day, 7 days a week, at 1-888-464-3232.
So there you have it. Even though your child may be working babysitting, dog walking, or landscaping by 14, they can’t get a free chequing account till 16.
What To Do to Prepare Your Child for a Bank Account
In the meantime, you may want them to learn how to sign their name in cursive. The Ontario government no longer considers handwriting to be a skill worthy of including in the curriculum. Other provinces and territories are likely similar. So chances are good your child is not able to write their name the same way twice, much less a hundred times for cheques and contracts!
Related Reading
- How to Open a Tangerine Chequing Account if You Have No Bank Accounts
- How to Complete Your Account Setup Using the Canada Post ID Check
- How to Open a Tangerine No Fee Chequing Account
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Did you help a child set up a bank account while they were under 16? Which bank did you choose? Would you do it differently today? Please share your views with a comment.
Interesting, I would prefer to start my son on a bank that he would not be penalized for, if he was too lazy to switch. [I only really switched because of the, ‘you’re not a student, give us fees.’]
Are you sure the Children’s sub account gets the bonus as well? I don’t have an account, but if I can get the bonus, and my son can as well. That would be great.
Our kids got a bonus on opening their accounts because there was a special time-limited promo running then. I didn’t get anything for it. (rats!)
The last promo I see for Children’s Savings Accounts ended on Oct 10, 2013. ( http://forums.redflagdeals.com/ing-25-bonus-opening-childrens-savings-account-possibly-targeted-1382206/)There should be a new one fairly soon, so I’d suggest most people wait for it.
I highly doubt that the regular referral fee would work for a children’s savings account. You could always shoot them an email to ask though (and to ask when the next promo will start for opening a child’s account.)