Young persons bank accounts can prepare younger people for a lifetime of good financial management.
Why do banks offer young person accounts?
These accounts give the bank a chance to attract a new customer who may well be with them for life, so incentives and gifts are usually a part of the introductory offer.
What features do young person accounts offer?
If there are overdraft facilities at all on a young person's account they will generally be very limited as people can't technical borrow money (have an overdraft) until they are 18 or older. Not all young person's accounts offer cheque books but some do if required. In most cases a debit card and the chance to set up Direct Debits and Standing Orders will be part of the account features. Many of these type of accounts feature the chance to earn higher interest on larger amounts in the balance. Statements will be provided in order that the new customer can keep a track of their money and transactions.
The incentives and gifts offered tend to be aimed towards the younger age group, perhaps money off-vouchers for books, DVDs, music downloads or discounts in certain shops. They may also include pens, folders and key-rings at the time of signing for the account.
What to watch for when selecting a young person's account
Don't be too influenced by the introductory freebies - make sure the whole account gives you what you want
Compare the different offers by different banks and choose the one that suits you rather than the one that is advertised the most
A young person's account could be the start of a long relationship with your bank but you are not obliged to be tied to it for life
See if the young person's account offers interest on your balance and whether the rate increases for larger account balances