Best checking account offers for teens

By Ariel Nash

Ariel Nash, left, and Lisa Fan, right, put on their sleuthing hats to investigate which local banks have the best deals for teens.

Photo By: Mary Kenkel

Whether you use a debit card or checks or not, though, pay close attention to your account balance or you’ll get hit with big overdraft fees.

When I went to banks with my mom when I was younger, I didn’t really understand what went on there. Those big, brick buildings were just mind-numbingly boring.

Now that I’m a college freshman, I understand what banks are for, but until last summer, I was still clueless about what banks could offer me.

As part of our MoneyTalk reporting, my partners Mary and Lisa and I went undercover to shop for the best checking account in town. We decided to zero in on three big banks: Twin Cities Financial, or TCF, U.S. Bank and Wells Fargo.

Our first stop was Wells Fargo on Grand Avenue in St. Paul. A man greeted us at the door and asked if he could help us. Mary explained that we were shopping for bank accounts.

He smiled and got a banker for us to talk to. Our banker was a young man who had been out of college for a few years. He took us through a door that said ‘Employees Only’ and up a flight of stairs.

I felt like a VIP. The personal banker gave us a run down on what Wells Fargo had to offer teens and college students. He seemed to know how to pitch the accounts to us.

For example, one bank account allowed parents to limit what their teen could spend each day to help them manage their money. The bank also only charged teens $15 for overdraft fees and only charge the fees three times so that teens don’t dig themselves too deep in debt, because they know that money management is something that teens have to learn.

The young banker told us that his previous position was being a Wells Fargo representative to some area schools. It was obvious that he had worked with college-age consumers, as he seemed to know exactly what we were looking for in an account.

He had such a good pitch and he seemed to genuinely want to help us start our money management with Wells Fargo.

One thing I learned was to ask lots of questions. Most of the checking accounts say “free,” but be sure to ask about overdraft fees, which can cost as much as $39 each time you bounce a check. Some banks also charge more money for each day your account remains overdrawn. At U.S. Bank, for example, the first overdraft fee is $19, the second ranges from $35 to $39, plus an extra $8 for each day your account remains in the red.

Another option is to open a savings account and use a debit card instead of checks. Then you won’t have to buy checks, which cost $16 for 150, more than 10 cents for each check.

Whether you use a debit card or checks or not, though, pay close attention to your account balance or you’ll get hit with big overdraft fees.

Our next stop was U.S. Bank. There wasn’t anyone at the door to greet us. A teller gave us a brochure on the accounts and told us that if we had any more questions, we could go and talk to one of the personal bankers working in their cubes.

It felt awkward to just walk past an invisible line that seemed to say ‘Bankers Only’ to ask questions about accounts.

The guy we picked looked a little startled that we stopped at his desk. He didn’t quite know how to cater to us. We told him that we were college-aged, but at one point he told us about an account with a $25,000 minimum, one that most teens would never be able to have.

The last place we went to was TCF. There was a huge bus serving free pizza and inside the bank, they were giving away these amazing cookies. TCF was already making a good name for itself in my book. On the walls, we saw that they were offering $50 for opening a new account and $25 if you referred a friend who opened one.

When the banker came to get us, we figured that this time we would get some really good deals for checking and savings accounts. But the accounts weren’t really tailored toward teens and college students. Plus the banker didn’t seem to know too many details about the various accounts. Since I’m going to Canada for college, I asked a specific question about the currency exchange rate, and he threw this huge book of bank rules on the desk because he didn’t know where to find it.

We left the bank and took advantage of the free pizza and giveaways in the parking lot. But the checking and savings accounts didn’t really cater to teens. If you mismanaged your account, TCF could charge you an overdraft fee of $35 per transaction up to seven times a day.

All in all, Wells Fargo made the best impression. They were friendly and the accounts really seemed to cater toward teens and college students.

Looking for a bank account should be like looking for a college: You have to read the materials, compare the offerings and find one that fits you. You shouldn’t get an account just because they offer you money and free stuff. You should get it because the services and fees suit your needs and budget.

ThreeSixty reporter Lisa Fan and University of St. Thomas mentor Mary Kenkel contributed to this report