American Express has no teen checking account product
American Express does not offer a checking account designed for teenagers. American Express is a credit card and payment services company, not a bank that holds deposit accounts. They issue credit cards, charge cards, and business payment products, but they do not provide the checking accounts, savings accounts, or debit cards that a teen checking account would require.
If you are looking for a teen checking account, you will need to look at banks and credit unions instead. Many traditional banks and online banks have teen accounts with features like parental controls, spending limits, and no overdraft fees. Credit unions often have youth accounts as well, sometimes with lower or no monthly fees.
Key Takeaways
- American Express does not offer checking accounts of any kind, including teen accounts, because they are not a deposit-taking bank.
- American Express does offer teen credit cards through their parent or guardian, which build credit history but are not the same as a checking account.
- Banks and credit unions are where to look for actual teen checking accounts with debit cards and spending controls.
- Some banks let a parent open a teen account online, while others require an in-person visit with the teenager present.
What American Express actually offers for teens
American Express does offer a teen credit card product, but this is different from a checking account. The American Express Serve card and some American Express credit cards can be added as an authorized user account, which means a teenager can use a card linked to a parent's account. The parent controls the spending limit and can monitor transactions.
A credit card or charge card is not a checking account. It does not hold your money the way a checking account does. Instead, you charge purchases to the card, and the bill comes due later. A checking account, by contrast, holds money you deposit and lets you spend it when ready through a debit card or checks.
Where to find teen checking accounts instead
Most major banks offer teen checking accounts under different names: Chase has Chase First Banking, Bank of America has MyFirst Checking, Wells Fargo has Way2Go, and Ally Bank has Ally Teen Checking. Credit unions often call them youth accounts or junior accounts. Each has different features, fees, and parental control options.
Online banks like Greenlight, Current, and Fidelity Youth Account are designed specifically for teens and parents. These accounts typically come with a debit card, parental controls through a mobile app, and no monthly fees. Some charge a monthly subscription instead of a traditional account fee.
Traditional banks usually require you to visit a branch in person to open a teen account, though some now let you start online. Credit unions vary by location and membership rules. Online banks can usually be opened entirely through an app or website.
How teen checking accounts differ from credit cards
A teen checking account holds money that the teenager or parent deposits. The teenager can spend only what is in the account. A credit card, including an American Express card, lets the teenager charge purchases and pay the bill later. The credit card company is lending money temporarily.
A checking account builds no credit history because there is no borrowing involved. A credit card, including American Express, does build credit history if the account is reported to the credit bureaus. For a teenager who wants to start building credit, an authorized user account on a parent's American Express card can help, but it does not replace a checking account for everyday spending.
Parental controls in teen checking accounts
Teen checking accounts typically let a parent set a daily spending limit, block certain types of purchases (like online shopping or ATM withdrawals), and see all transactions in real time through a mobile app. Some accounts let parents approve or deny individual transactions. American Express credit cards for authorized users also let parents monitor spending, but the controls are usually less detailed than a dedicated teen checking account.
If parental oversight is important to you, compare the control features of different teen accounts before choosing one. Some accounts let you set different limits for different days of the week or different merchants. Others straightforward cap the total amount the teenager can spend per day.
Fees and costs to compare
Teen checking accounts at traditional banks often have no monthly fee if the account meets certain conditions, such as a minimum balance or direct deposit. Some charge a flat monthly fee regardless. Online teen accounts sometimes charge a monthly subscription fee, usually between $5 and $15, but include features like real-time spending notifications and parental controls built in.
American Express credit cards for authorized users typically have no separate fee for the authorized user, but the primary cardholder pays the annual fee for the main card. This fee varies by card type and can range from $0 to several hundred dollars depending on the card's benefits.
How to choose between a teen checking account and a credit card
If your teenager needs a card to spend money they already have, a teen checking account is the right choice. If your goal is to help them build credit history for the future, a credit card like American Express (as an authorized user) is useful. Many families use both: a checking account for everyday spending and a credit card for building credit.
Start with a checking account if your teenager is new to managing money. It teaches spending within limits without the complexity of credit and interest. Add a credit card later, once they understand how to track spending and pay bills on time.
Frequently Asked Questions
Can a teenager get an American Express card without a parent?
No. Teenagers under 18 cannot open their own American Express account. They can be added as an authorized user on a parent's or guardian's account. Once they turn 18, they can open their own American Express account if they meet the company's requirements.
Does an American Express authorized user card build credit?
Yes, if American Express reports the authorized user account to the credit bureaus. Not all card issuers report authorized user accounts, so check with American Express first. Building credit as an authorized user is one reason families add teenagers to their accounts.
What is the difference between a debit card and a credit card?
A debit card (which comes with a checking account) spends money you already have in the account. A credit card borrows money from the card issuer, and you pay it back later. Debit cards do not build credit history; credit cards do.
Can I open a teen checking account online?
Some banks and most online banks let you open a teen checking account entirely online. Others require at least one visit to a branch with the teenager present. Check with your bank or credit union about their specific process.
What happens to a teen checking account when the teenager turns 18?
Most teen accounts convert to a regular adult checking account automatically. Some banks let you keep the same account; others require you to open a new one. Contact your bank to understand what happens at age 18.