Kids' and Youth Bank Accounts in Canada: Fees, Joint Accounts and Allowance Apps

A child's first bank account in Canada should cost nothing. Banks that signed the federal commitment on low-cost and no-cost accounts offer a no-cost account to youth and students, and a low-cost account of up to $4 a month to anyone. Choose whether the account is in the child's name alone or joint with a parent, set debit card limits, and treat allowance apps and prepaid cards as a separate offer type, often with a monthly fee, to compare against a free youth account.

The no-cost youth account

The Financial Consumer Agency of Canada explains that banks covered by the commitment on low-cost and no-cost accounts offer a low-cost account costing up to $4 a month, with no minimum balance and a set of included services, and a no-cost account for eligible groups that include youth aged 18 or under and students. The commitment was modernized, and FCAC said in November 2025 that the accounts now include more monthly transactions. The bank validates eligibility when the account is opened and periodically after.

Ask the bank three questions: what the account includes each month, what age or status ends the no-cost terms, and what the account changes to after that. The student banking guide covers the switch after graduation.

Joint or sole account

Bring the child's ID and SIN if they have one; a SIN is needed for interest reporting and for a job. Banks set minimum ages for a sole account and for a debit card; ask before you go.

Debit cards, limits and scams

A debit card teaches spending from what you have. Set daily limits low at first. Talk about the scams aimed at teens: e-transfer requests from strangers, fake job offers that send a cheque, and messages asking for a card number or a one-time code. A bank will never ask for a password or code by text. FCAC's teaching resources cover money conversations by age.

Allowance apps and prepaid cards

Allowance apps and prepaid cards for kids are an offer type. Features usually include a card the child spends from, a parent app to send money, chore tracking and savings goals. Many charge a monthly subscription. Compare the yearly fee with a free youth account plus a simple chart on the fridge. Check whether the money is held in a way covered by deposit insurance; CDIC covers eligible deposits at member institutions, and a prepaid product may be structured differently.

Step by step: opening a child's first account

1. Compare youth accounts at banks and credit unions near you, and ask what the no-cost terms include each month.
2. Ask the minimum age for an account in the child's name and for a debit card.
3. Book an appointment, or check whether the bank lets you open online for a minor.
4. Bring your ID, the child's ID (such as a birth certificate or passport) and the child's SIN if they have one.
5. Choose joint or sole, set up online banking and set the debit card limits.
6. Link it to your account for allowance transfers, and show your child how to check the balance.
7. Set a calendar reminder for the age when the youth terms end.

Age of majority and what changes

The age of majority is 18 in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan, and 19 in British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, the Northwest Territories, Nunavut and Yukon. At that age, a young person can usually sign contracts such as a credit card agreement on their own. Ask the bank what happens to the youth account then, and whether student terms continue if your child enrols in post-secondary.

Deposit insurance

The Canada Deposit Insurance Corporation covers eligible deposits at member institutions, up to $100,000 per insured category per member. Credit unions are covered by provincial deposit insurers instead. If you use an allowance app, check where the money is actually held and whether it is protected.

Common mistakes

• Opening a regular account with monthly fees instead of a no-cost youth account.
• Forgetting the youth terms end at a set age.
• Leaving debit card limits at the default for a young child.
• Paying a monthly app fee for features a free account and a chart can do.
• Not talking about scams before the child gets a debit card.

Example with made-up inputs: one year of fees

These numbers are an example with made-up inputs, not real fees. A no-cost youth account costs $0 a year. A made-up allowance app at $5 a month costs $60 a year. A made-up regular chequing account at $12 a month would cost $144 a year if a youth account were not used.