If you are a USAA member, you may recall this account was created to help youth in the form of a “youth spending account” inside the USAA banking services. This account allows youth to put money away in the bank for savings or to be used for college or other special needs.
As the son-in-law of a USAA member, I’m constantly impressed with the unique partnership that exists between this unique financial institution and our military community. With $100,000 to $250,000 in flexible funding, USAA wants to help you and your loved ones build a solid financial foundation for the future.
From the time you are young, you’ll be confronted with the idea of money. Often, the idea of embracing money can be scary. But it doesn’t have to be. Read More
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USAA was established almost a century ago, in 1922, when a group of 25 Army officers saw a need for car insurance for military personnel and decided to form a financial services company. Active-duty military personnel and veterans may now use USAA Federal Savings Bank for all of their banking needs, from investing to checking.
That now includes children. The USAA Youth Checking account is a safe and secure way for youngsters under the age of 18 to save money. Users may manage their accounts entirely online or in USAA financial centers near military bases in seven different states. Find out whether joining USAA is a good fit for your kid or teen’s financial requirements if you qualify.
See how this account stacks up against the top debit cards for children and teenagers in 2021!
This article will teach you how to:
Kids between the ages of 13 and 18 are the target audience.
Users searching for a simple spend account that closely mimics a conventional checking account are a good fit.
Sub account holders must be at least 13 years old and no more than 18 years old. Only military families, however, are eligible to join USAA. Active-duty military personnel, retired military personnel, honorably discharged veterans, and their families are all eligible to join USAA. Spouses, biological, adoptive, and stepchildren are among the immediate family members who may participate.
When a kid reaches the age of 18, the account is immediately converted to a USAA Classic Checking account, and the now-teen takes full control of the account that was previously managed by their parents. If a parent wants to keep their account, they may choose to become a joint owner with their kid (provided the child agrees). It’s also free to open a Classic Checking account.
This is a simple checking account that has been made kid-friendly. Parents and children share power, but parents have the ultimate word on where and how much their children may spend their money.
A parent becomes the main account holder after enrolling, while a kid becomes a sub account holder.
Because this is a spending account, there aren’t many savings or educational options. Here are some of the things kids may do with their accounts.
Earn: If a kid has a job, they may connect their direct deposit payments so that they are automatically paid into their account. They may also use the mobile app to deposit checks. It’s not realistic to expect them to be able to make more money via the app. This platform does not contain features such as chores and allowances, savings incentives, or referral possibilities.
Spend: This account comes with a Visa debit card that can be used virtually wherever Visa is accepted.
They may spend up to $3,000 each day ($6,000 total) on transactions made using their signature or PIN. The total number of PIN and signature payments in a single day cannot exceed 20.
Users may also use their USAA debit cards to check their balance or withdraw money from their accounts at over 60,000 in-network ATMs throughout the nation. In addition, Federal Savings Bank reimburses up to $15 in monthly out-of-network ATM fees. Teens are allowed to make up to 20 ATM withdrawals each day, with a total limit of $600.
They may also use Zelle to send money from their account to virtually anybody who knows their name and phone number. Recipients do not need to be USAA members to receive money via Zelle, and they may do so even if their bank isn’t.
Overdraft protection is available for all accounts. This implies that if a user tries to make a purchase that exceeds their account balance, USAA will immediately transfer funds from a connected external bank account to cover the transaction. Parents must sign up for this service and give USAA permission to make withdrawals as necessary.
Cash advances made with a debit card are restricted to five per day and a total of $1,000.
Save: Unfortunately, USAA’s Youth Spending account does not have any savings options. If a person wants to save money, all they have to do is be diligent about not spending what they have in their account. They can’t make savings buckets to put money away, establish savings goals to track their progress toward a major purchase, or receive account incentives from their parents if they meet their objectives. There is no balance matching as well.
Although this checking account pays interest, you must have a balance of at least $1,000 to qualify, and the yield is presently only 0.01 percent.
If you want to put money aside to grow, USAA advises opening a savings account in addition to a checking account. However, after doing some research, we discovered that the USAA Youth Savings account is now earning just 0.01 percent across all balance levels.
Parents may select from the following financing methods to add additional money to their child’s account:
- Deposits made directly into your bank account
- Make a cash deposit (in-person at a USAA branch or participating ATM])
- Check deposit on the go
- ACH is an electronic funds transfer.
- Transaction using a credit or debit card
- Transfer of data by wire
To create this account, you must make a minimum deposit of $25. Parents may deposit up to $5,000 each day into their child’s account.
Parents may sign up for real-time SMS notifications when their kid uses their card to make a purchase or withdraw money, or when their account balance falls below a certain amount, and they can establish different activity and spending restrictions for their children. These options include limiting access to the USAA app and website, allowing or disabling deposit and transfer capabilities, and establishing spending restrictions. If a parent allows their kid to use the website and mobile app, they may choose which of their accounts they want them to view.
Parents may also use the app to temporarily increase or decrease the amount their kid can spend on their card each day. All of these options may be changed at any time.
- There is no monthly maintenance charge.
- In-network ATM transactions are free.
- Out-of-network ATM transactions cost $2. (charged by third parties),
- $0 for insufficient funds, $0 for overdrafts
- There is no charge for overdraft protection.
- Non-sufficient funds fee of $29 (maximum of 3 a day),
- The cost for returning an item is $5.
- Incoming wire transfers are free of charge.
- Outgoing wire transfers cost $20.
If you don’t spend more than you have or transfer money, this account is free. There is no minimum average daily balance requirement, however customers who wish to earn interest must have a balance of at least $1,000.
This account does not need any subscription payments.
In comparison to rival products that impose membership fees as well as excessive transfer and funding fees, this account is very cheap. It is not, however, totally free. However, if you’re cautious (i.e., don’t use out-of-network ATMs, don’t utilize overdraft protection, and don’t send wires), you might spend $0 with this account.
Another benefit of this account is the USAA app. It’s as practical and dependable as you’d expect from a financial app.
The USAA kids’ checking account is compatible with most digital payment systems, including Google Pay, Apple Pay, and Samsung Pay, despite not being as contemporary as other kids’ banking platforms. In-app transfers are handled by Zelle, one of the world’s biggest digital payment networks and a reputable business in general.
This product will provide your kid or adolescent with a conventional banking experience by giving them access to in-person branches. As banking moves toward digitalization, it’s up to you, the parent or guardian, to determine whether or not this is essential for you, but it’s definitely great to have the choice. Just keep in mind that there aren’t many USAA branch locations.
Finally, many of these accounts don’t accept cash deposits, so the fact that USAA does is a benefit we want to highlight.
Other youth checking accounts, such as Greenlight, Alliant, and Gohenry, offer more features than this account. It doesn’t include any of the financial literacy learning materials you’d expect in a child-friendly account, and it doesn’t allow kids to set savings goals or earn extra money by completing chores.
This product’s current interest rate is likewise so low that it’s barely worth noting. We understand that USAA is far from the only bank unable to provide competitive interest rates in this economy, but it may be some time until this interest-bearing account becomes competitive. Furthermore, $1,000 is a high criterion for eligibility.
It’s also sad that the number of people who may join this organization is so restricted. To join, you must be a member of the military, which immediately disqualifies almost all of the population of the United States.
Customer feedback on USAA is varied. For the most part, those who choose to bank with USAA seem to be devoted to the organization, but it does not imply that every member is satisfied with their experiences.
The majority of complaints concern issues that were not handled properly or resolved in a timely manner. Many individuals have reported losing money due to illegal transactions or fraudulent activities and not being able to recover it. The company’s customer service, which is known for being courteous and professional, as well as its web site and mobile app, are praised for being simple to use.
This software performs well on both Android and Apple smartphones. It received a 4.8 out of 5 star rating on the App Store and a 4.6 out of 5 star rating on Google Play. The software is streamlined and well-organized, despite its lack of aesthetic appeal. It’s more like a regular banking app than many of the kids’ banking applications we’ve looked at.
Call 210-531-9722 or 800-531-8722 to speak with a customer service representative. Because this is the primary phone number for the institution, you may have to wait a few minutes to be connected to the appropriate department. Alternatively, you may use the website to chat with a virtual representative or send a secure message via your account.
You may also go to a branch if you live near one, although they are quite dispersed. Colorado, California, New York, Texas, Maryland, Virginia, and Florida are among the states where USAA maintains locations (Note: financial centers are temporarily closed to the public at this time).
Every USAA Youth Spending account is guaranteed by the federal government up to a maximum of $250,000. Personal information about children is likewise protected by USAA from being sold to other parties.
USAA also offers free fraud monitoring 24 hours a day, 7 days a week.
A parent must apply for a USAA Youth Spending account using their personal information. They’ll need to deposit money to their holding account by linking a funding source, and then they’ll be able to add a sub account holder, their kid, and request a debit card for them.
To open a youth checking account, you must be a member of USAA. You may apply for membership online if you haven’t already. Verifying your eligibility is the initial step, followed by establishing your account and passwords. You are not needed to apply for any other accounts and may start establishing the checking account right now.
This account may be a bit dull, but it’s a safe bet if your adolescent is ready to learn about money management via hands-on experience. If you’re searching for a complete platform with chores and allowance features as well as learning opportunities, the USAA Youth Checking account isn’t for you. It may be a good match for you if you want your kid to learn how to use a regular checking account while also keeping tabs on their spending.
Spending money is the most powerful tool in the financial toolbox. There are so many things you can do with money, you can’t even fathom it. You can use it to lower your monthly expenses, to pay down debt, you can buy a new car, you can save for retirement, you can invest, you can start a business, you can save for college. The point is, there are so many options available, that you can’t limit your spending if you want to have a prosperous financial future.. Read more about usaa youth spending account app and let us know what you think.
Frequently Asked Questions
How old do you have to be to have a debit card with USAA?
You must be 18 years old to have a USAA debit card.
How old do you have to be to open a USAA account?
You must be 18 years old to open a USAA account.
What is a youth savings account?
A youth savings account is a type of savings account that is designed for children. It is typically opened by parents or guardians, and the money deposited in the account can only be used for certain purposes, such as education, medical expenses, or emergencies.
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