Fidelity Youth Account | A teen saving, investing, and spending account (2024)

FAQs

Fidelity Youth Account | A teen saving, investing, and spending account? ›

The Youth Account is a teen-owned taxable brokerage account. It is owned by the minor, who makes all the investment decisions. This is unlike a Roth IRA for Kids, which is a custodial account that an adult opens and manages on behalf of a child under age 18 who has their own employment compensation.

The Youth Account is a teen-owned taxable brokerage account. It is owned by the minor, who makes all the investment decisions. This is unlike a Roth IRA for Kids, which is a custodial account that an adult opens and manages on behalf of a child under age 18 who has their own employment compensation.

Your teen will be prompted to transition their account starting on their 18th birthday. The debit card they were issued for their Youth Account will continue to be valid until it expires. At that point, a new brokerage debit card will be issued. They can access information about their card on the debit card page.

When you (parent or guardian) initiate the opening of a new Youth Account and your teen (aged 13–17) downloads the Fidelity Mobile^® App and activates the new account, your teen will receive a $50 deposit as a reward.

They can use their brokerage account to start their investing journey by trading most U.S. stocks, ETFs, and Fidelity mutual funds in their accounts. There are no subscription fees, no account fees, no minimum balances, and no domestic ATM fees on the included free prepaid debit card for teens.

How do you choose? It depends on why you want to invest. For retirement, options include a traditional IRA, Roth IRA, rollover IRA. For general investing and trading, investing for a big goal (like the down payment on a house), or simply giving your money the potential to grow, consider the Fidelity brokerage account.

Youth accounts are savings accounts and checking accounts designed for children. They often require a much lower deposit to open than an adult's account, they have great interest rates, and also fewer fees.

The minor Savings Account is jointly held by the parent/guardian and the child. Once the child is 10 years old, they are allowed to operate the account on their own. A child above 10 years of age is provided with a cheque book and a Debit Card to withdraw money. However, the parent/guardian can set a withdrawal limit.

If you are the beneficiary of the custodial account, you can withdraw funds once you legally become an adult.

Child eligibility

For children aged 13 to 17, a parent/guardian with an existing Fidelity account may open this account on their behalf. Child must have a Social Security card, plus one other form of ID. At age 18, account will be transitioned to a retail brokerage account for free.

What are the benefits of Fidelity Youth account? ›

The Fidelity Youth Account is a teen-owned brokerage account that comes with a debit card. It is not a joint account or a custodial account. The Youth Account will allow a teen to save, spend, and invest in a single account. The Youth Account has no fees, minimum balances or debit card transaction fees.

Once the qualification period (15 calendar days) has ended and you have at least $50 in your new Fidelity account, Fidelity will deposit $100 into the account within 10 calendar days. The total time from registering for the offer to receiving the cash reward may take up to 25 calendar days.

About the debit card

The Fidelity^® Debit Card is an ATM/debit card that charges no annual fee. Use the card for any purchases where Visa is accepted and withdraw cash at ATMs worldwide wherever you see the Visa, Plus^®, or Star^® logos.

Minors cannot open brokerage accounts, but family and friends can help them set up custodial accounts, and when a child begins to earn income, they can open a Roth IRA. Financial Industry Regulatory Authority, "Saving for College: UGMA and UTMA Custodial Accounts."

Although there are certain restrictions, no laws prohibit people from investing when they are underage. It is generally impossible for minors to open their own brokerage account, but custodial accounts and joint accounts allow young people to begin their investing journey with varying amounts of adult supervision.

Robinhood is good for simple trades, while Fidelity's mobile offering is more comprehensive and a better platform when it comes to the complete mobile trade experience.

Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.

(Fidelity charges $0 account fees and has no minimums for opening or maintaining a brokerage account.)

Should I start a custodial account for my kids? ›

A custodial account can be a great way to save up money for your child's future. A custodial account provides a lot of flexibility for how you want to invest and use the funds as opposed to a 529 account which has specific rules around how you can spend the money.

Financial experts suggest most kids are able to grasp money concepts by age 9, which makes it a good age to open an initial savings account. Because checking accounts require greater financial responsibility, they suggest waiting until your child turns 15 to open a checking account.

The minor bank accounts are restrictive in nature and not all features could be available compared with a normal account. Facilities like Internet banking, ATM or debit card, cheque book facility etc., would still be there in a minor's account but they will be subject to safeguards and restrictions.

Hello, unfortunately, transferring money from an account to another is not allowed, and can't be performed due to Microsoft's regulations.

A custodial account is generally created by a parent or grandparent for the benefit of a minor child or grandchild. When you put money into a custodial account, you make a gift to the minor beneficiary of the account, even though the minor does not control the account.

How Do Taxes Work with a Custodial Account? The child beneficiary technically owns the custodial account — not the custodian. It's the beneficiary's Social Security number that is attached to the account. Thus, the child is the one who technically needs to pay taxes.

No. Money and assets deposited into a custodial account immediately and irrevocably become the property of the child. In other words, you can't take the assets back or give the assets to someone else.

UGMA/UTMA. UGMA (Uniform Gifts to Minors Act)/UTMA (Uniform Transfers to Minors Act) account, is a brokerage account for investing in stocks, bonds, mutual funds, and more. It can be a great way to save on the child's behalf, or to give a financial gift. The money in this account belongs to the child.

The traditional option allows you to set aside dollars for retirement on a tax-deferred basis, meaning that your taxable income is reduced by the amount of the money you set aside in a calendar year. Your money grows tax-deferred until the tax code allows you to begin making penalty-free withdrawals after age 59 1/2 .

Does Fidelity have a student account? ›

Fidelity Bank offers student checking and savings account options to help you get started on the right financial path. Designed for ages 13-23,¹ our Student Plus and Student accounts are simple to use and come with premium account perks.

How old does my child have to be to buy stocks? To start investing in stocks on their own, your kid will need a brokerage account, and they must be at least 18 years old to open one. They can start earlier than this, but they'll need a parent or guardian to open a custodial account for them.

Minors cannot generally open brokerage accounts in their own name until they are 18, so a Roth IRA for Kids requires an adult to serve as custodian. The custodian maintains control of the child's Roth IRA, including decisions about contributions, investments, and distributions.

The bottom line: Fidelity offers $0 trading commissions, a selection of more than 3,300 no-transaction-fee mutual funds and top-notch research tools and mobile platform. Its zero-fee index funds and strong customer service reputation are just icing on the cake.

When will my funds be available? EFTs in and out of Fidelity accounts are generally received within 1-3 business days, though the funds may be immediately available for trading. Electronic funds transfers (EFTs) are not processed on Saturdays, Sundays, or New York Stock Exchange and bank holidays.

Transfer limits

There is no limit to the number of EFTs you can submit per business day. The minimum deposit amount for each EFT is $1 for non-retirement accounts, and $10 for retirement accounts and the maximum amount per day on Fidelity.com is $100,000 for withdrawals, and $250,000 for deposits.

What is the Fidelity Youth Account? The Fidelity Youth Account is a teen-owned brokerage account that comes with a debit card. It is not a joint account or a custodial account. The Youth Account will allow a teen to save, spend, and invest in a single account.

Fidelity^® Cash Management Account

This convenient way to save, spend, and manage your cash has the features of a traditional checking account, without a bank. See how you can save and earn money in ways you can't with a traditional bank.

It's easy — Zelle is already available within Fidelity Bank's mobile banking app! Check our app or sign-in online and follow a few simple steps to enroll with Zelle today.

What happens if a minor buys stock? ›

How to invest in stocks if you're under 18. Minors must have the help of a legal adult to open an account and invest in stocks. Minors can use “custodial” investment accounts. The custodian of the account must be over age 18 and be willing to open the account on behalf of the minor.

While you need to be over 18 to buy and sell shares, parents can open accounts in their children's names and hold shares in their own names for the benefit of their kids. Investing for kids is an excellent opportunity to enhance their financial literacy and teach them about important concepts, such as diversification.

Minors can own stocks in their names (contrary to popular belief). Minors cannot open a brokerage account, because they cannot sign legally for themselves and transfer agents cannot accept the signature of a minor to complete any transactions. Minors can have custodial accounts (UGMA accounts) opened in their name.

As a minor, you can make investments only under the supervision of your parent (or an adult) through a custodial account. Your parent will have to sign you up for a custodial account offered by an online broker.

Fidelity is one of the largest stockbrokers in the US. It has an excellent product selection and provides a great variety of tools to support your own investment research. Like nearly all US brokers these days, it offers commission-free stock and ETF trading.

Anyone at least 18 years old can open an online brokerage account. Those who are younger than that will need a parent's assistance. Parents can either open a brokerage account on their teen's behalf or set up a custodial account.

The Fidelity Youth Account is a teen-owned brokerage account that comes with a debit card. It is not a joint account or a custodial account. The Youth Account will allow a teen to save, spend, and invest in a single account. The Youth Account has no fees, minimum balances or debit card transaction fees.

What is a youth checking account? ›

A teen checking account — also referred to as a high school checking account — is a joint account, with you and your teenager as co-owners. Your teenager is the primary account holder on the account. Both you and your child can make deposits, withdrawals, and access online banking for the high school checking account.

As the legal adult associated with the account, most banks and institutions allow you to set specific limits or requirements on how your child uses the account. Depending on your bank, this may include: Allowing the minor to deposit money but not withdraw any money.

For children aged 13 to 17, a parent/guardian with an existing Fidelity account may open this account on their behalf. Child must have a Social Security card, plus one other form of ID. At age 18, account will be transitioned to a retail brokerage account for free.

What kind of accounts are displayed on Portfolio Summary? The Summary tab displays Fidelity personal investing accounts (such as brokerage or mutual fund accounts), Workplace Savings accounts (like a 401k or 403b account), and Fidelity accounts you don't own but are authorized to view.

There are three program tiers in the Rewards Program (“Tiers”) — Gold, Platinum, and Platinum Plus. Tier eligibility is determined based on the aggregate balance of your Eligible Account(s).

A minimum deposit of $25 is required to open a Free Checking account.

“A good rule to live by is to save 10 percent of what you earn, and have at least three months' worth of living expenses saved up in case of an emergency.” Once your teen has a steady job, help them set up a savings program so that at least 10 percent of earnings goes directly into their savings account.

Teens must share a joint account with a parent or guardian, since many banks require students to be 18 before getting an account on their own (although some banks, like Citizens, will open a standalone account for a 17-year-old; learn more here).

PehlaKadam : Child's photo embossed ATM-cum-Debit Card with withdrawal/POS limit of Rs. 5,000/-.

Is it a good idea to open a bank account for a minor? ›

Opening a savings account for a baby or a child can be a good way to begin teaching good money habits. Your child might already know about bank accounts from books or TV. But if they ask where money comes from or how to have their own, they might also be ready for a savings account.