Monzo launches current accounts for kids aged 16 to 18 years old
TEENAGERS can now open a current account with app-based bank Monzo – but there are some restrictions.
The bank has lowered the age limit from 18 years old to 16 and they’ll get almost the same access as an adult account holder.
Now, 1.5million teens aged 16 and 17 will be able to send and receive money by bank transfer, set up direct debits and standing orders too.
Unlike a high street bank, Monzo is purely a digital service and is managed through an app – and there are no branches.
It’s designed to help you track your spending by tracking and categorising what you’re buying, like clothes, eating out and entertainment.
The idea is that it’s clearer to manage your funds and know where to cut back, by receiving spending updates, clever budgeting and bill splitting.
Best current accounts for teenagers
THESE are just some of the best bank accounts of offer for teenagers, according to Money.co.uk:
- Metro Bank Cash Account, 11 to 17 year-olds, 0 per cent AER
- Bank of Ireland Student Account, 11 to 19-year-olds, 0.1 per cent AER
- Bank of Scotland Under 19s Account, 11 to 18-year-olds, 1.5 per cent AER on up to £2,499
- Lloyds Bank Under 19s Account, 11 to 18-years-old, 1.5 per cent AER on up to £2,499
- Natwest Adapt Account, 11 to 18-years-old, 1 per cent AER
There are similar digital banks that are also app based like Tandem, Revolut and Starling but Monzo is the first to offer it to 16 year olds.
The bank are hoping that opening up the service to young adults will help them to get to grips with their finances earlier on.
But you won’t get full access to the services as Monzo has restricted transactions to things like gambling sites because it’s illegal to gamble until you’re 18.
They don’t stretch to places where you buy alcohol though because it has to block the retailer, not the products, otherwise you wouldn’t be able to use it to buy food at supermarkets.
You also won’t be able to get an overdraft – but if you do overspend then the bank won’t charge you and will ask for it back.
Of course, high street banks often offer a children’s bank account option for teenagers from 11-years-old to 17, and they sometimes offer interest which is something Monzo doesn’t do.
Plus the funds can also be manged through the bank’s app, but they’re often not usually as clear at showing money management.
Monzo boss Tom Blomfield said: “Helping young people to get to grips with their money is a core part of our mission at Monzo.
“Being able to now offer Monzo accounts to those over the age of 16 gets us one step closer to that vision and I’m excited that even more people will now be able to access Monzo.”
Teens can open their own accounts by downloading the app and following the instructions, and their debit card will be sent out the next working day.
Parents can start saving for their children by tucking away a bit of cash every month which will go towards their future.
These are the best children’s savings accounts that will give you up to 4.5 per cent interest.
Monzo competitor Starling Bank has made some radical changes to its debit cards – and it could help protect you against fraud.
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