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Home >> Special Situations >> Minors
Helping Teens to Get Bank Accounts
I work for a nonprofit in Brooklyn, NY, that serves inner-city teens. We are a job-training program that pays the teens to work on projects with our mentors. Many of these kids don't have bank accounts and we would like to advise them on the best places to look, and the questions to ask before opening one. Can you advise me on this?
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 Banks vary widely in their policies on opening accounts for minors. Some banks will be receptive to opening savings accounts, but not checking accounts. Others may be less risk-averse, and be willing to open a checking account. New York banking laws state that banks are permitted to accept deposits from minors. However, that does not mean that all banks in New York accept minors' accounts.
Your agency should approach several banks in your community to ask about the availability of accounts for your clients. One recommended point of contact at the banks is the Community Reinvestment Act (or CRA) officer. Banks are encouraged to support their local communities, particularly when those communities are low-to-moderate income neighborhoods. You might be able to craft a partnership with one or more area banks who would offer basic training on the operation of a bank account, perhaps as a prerequisite to opening such accounts for your teen clients.
You'll want to know the costs involved in the account, whether the bank includes ATM or debit card access in the package, whether overdraft coverage is part of the deal, etc. Your clients should not use overdraft coverage. The teens should also get some solid training on use of an ATM or debit card as part of account management, before they receive one. A successful program can help your clients establish some sound banking basics early, and provide the participating bank some positive points when it is evaluated for compliance with the Community Reinvestment Act.
Published on BankingQuestions.com 1/15/09
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