topic Re: New debit card for teens by Venmo in Personal Finance

New debit card for teens by Venmo

NoMoreE46 — Wed, 04 Oct 2023 03:12:13 GMT

This is what I have been waiting for! I just signed my kids up to get their cards. On the surface, this looks to be fee free. (I had the Greenlight but closed these cards b/c of the monthly fee.)

Venmo Teen Account | Venmo

Re: New debit card for teens by Venmo

butterpecan — Tue, 30 Apr 2024 02:44:51 GMT

@NoMoreE46 wrote:
This is what I have been waiting for! I just signed my kids up to get their cards. On the surface, this looks to be fee free. (I had the Greenlight but closed these cards b/c of the monthly fee.)

Venmo Teen Account | Venmo

@NoMoreE46 I wonder what happens after they turn 18 as it says for teens 13-17 years old. This is very intriguing to me thanks for the info I had not seen this one yet and was looking into Affinity federal credit union for my 17 year old.

Re: New debit card for teens by Venmo

IcyCool7227 — Tue, 30 Apr 2024 04:02:42 GMT

For informational purposes: The fintech neobanks for kids/teens other than Greenlight/Venmo include:

- BusyKid (monthly fees) (www.busykid.com),

- Copper (monthly fees) (www.getcopper.com),

- FamApp/FamPay (India only) (www.famapp.in),

- FamZoo (monthly fees) (www.famzoo.com),

- Gimi (Sweden only & monthly fees) (www.gimi.com),

- Go Henry (monthly fees) (www.gohenry.com),

- Jassby (www.jassby.com),

- Kachinga (www.kachinga.com),

- Modak (https://www.modakmakers.com),

- Spendways (formerly: Vybe) (France teens only & monthly fees) (www.spendways.com),

- Step (www.step.com),

- Suvi (www.suvicash.com),

- Til (https://www.tillfinancial.com)

and Flyte (also investing) seems to have closed.

To answer your question, I'm assuming that it would just convert to a regular Venmo account after they turn 18. There is also Capital One (https://www.capitalone.com/bank/checking-accounts/teen-checking-account/), Chase and PNC for teen accounts along with countless other regular bank and credit unions that specialize in those kinds of accounts as well (not all charge a monthly fee).

Re: New debit card for teens by Venmo

FicoMike0 — Tue, 30 Apr 2024 04:20:01 GMT

Here's another.

https://www.fidelity.com/go/youth-account/overview

Probably better than mon & dad's account, pays 4.95%. They can buy and sell stock.

If your teen is a world traveler,

Fidelity Youth includes a debit card with 5¢ back per use2—and ATM fees reimbursed globally.3

Re: New debit card for teens by Venmo

FicoMike0 — Tue, 30 Apr 2024 04:18:57 GMT

Fidelity account is fee free, no min balance and of course, there's an app.

I set all my grandchildren up with it. One turned 18 since, he was transitioned to a standard brokerage account and a cash management account. Both fee free, no min. No fee debit, worldwide. Again, there's an app.

Re: New debit card for teens by Venmo

FicoMike0 — Tue, 30 Apr 2024 04:24:59 GMT

One thing I really like about fidelity, if you need to call them, they speak English as their first language, they are competent, sound like they're used to talking to people with the big monez, and treat you the same.

Re: New debit card for teens by Venmo

ptatohed — Wed, 01 May 2024 03:43:11 GMT

So what is the benefit to any of these teens cards? I added my 13 yo as an authorized user to my citi Double cash and done deal. I get 2.22% cash back on his purchases. I did not see any rewards on these teens cards.

Re: New debit card for teens by Venmo

FicoMike0 — Wed, 01 May 2024 04:19:51 GMT

The fidelity is a brokerage account with a debit not a credit card. It gives them their own account. If they get a check, they have someplace to deposit it. If they get a job, someplace to direct deposit. The idea is to learn how to manage their own money, under your watchful eye, of course. Your 13 yo could still use your credit card, then pay his charges from his own account. Of course, he can buy and sell stock, too. That's a real education.

Does your checking pay 4.95%? You might want the 13 yo to hold your spare monez for you. Let him earn interest on money you arent, lol. The best bank savings i have is Capone at 4.3%. I keep most of my uninvested monez at fidelity. Fidelity gives good ach too, when you want to smirf money to or from other banks.

Re: New debit card for teens by Venmo

ptatohed — Wed, 01 May 2024 04:14:23 GMT

@FicoMike0 wrote:
The fidelity is a brokerage account with a debit not a credit card. It gives them their own account. If they get a check, they have someplace to deposit it. If they get a job, someplace to direct deposit. The idea is to learn how to manage their own money, under your watchful eye, of course. Your 13 yo could still use your credit card, then pay his charges from his own account. Of course, he can buy and sell stock, too. That's a real education.
Does your checking pay 4.95%? You might want the 13 yo to hold your spare monez for you. Let him earn interest on money you arent, lol.

I have been thinking a lot lately about switching to a high yield checking account. Right now I am with chase earning 0.insulting% APR. We have thousands in there at any given time. If you say our average balance sitting in checking is $5,000, that's $250/yr lost (compared to 5% APR).

Re: New debit card for teens by Venmo

FicoMike0 — Wed, 01 May 2024 04:27:42 GMT

Take a look at what fidelity offers. Their cash management account looks like a checking to me. I think it pays 2.69%, but they have other accounts and funds that pay ~5%.

They paid me a $100 bribe last September to open the cma (deals expired). I had to leave the $100 with fidelity for 90 days. I immediately put it in a no fee managed fund called fidelity go. Last time I looked, it was worth $110. I wish I'd put $10000 in, lol.

Re: New debit card for teens by Venmo

IcyCool7227 — Wed, 01 May 2024 04:29:14 GMT

Why are you wasting money away having an account with Chase? Depending on your area there might be several options:

Take a look at: https://www.doctorofcredit.com/high-interest-savings-to-get/ . It includes checking with high balances but some have high requirements. That list doesn't include Empower Credit Union though of 5% up to $1K with a single direct deposit or ACH transfer of any amount.

Re: New debit card for teens by Venmo

keekers — Wed, 01 May 2024 04:33:45 GMT

The Cash Management Account is simply a rebranded brokerage account with cash management features (e.g. overdraft protection, minimum cash balance, etc). The sweep account (or "Core" as Fido calls it) is a pool of FDIC insured banks. If you want to park your $ at greater than ~2.7% just buy a Gov MMF or something similar instead of having it in the cash position. Virtually zero risk and the 7 day yield has been hovering around 5% since at least 2023. Of course, if and when the Fed drops the rates the yield will also decline, but until then...

Re: New debit card for teens by Venmo

ptatohed — Wed, 01 May 2024 04:45:21 GMT

@IcyCool7227 wrote:
Why are you wasting money away having an account with Chase? Depending on your area there might be several options:

Take a look at: https://www.doctorofcredit.com/high-interest-savings-to-get/ . It includes checking with high balances but some have high requirements. That list doesn't include Empower Credit Union though of 5% up to $1K with a single direct deposit or ACH transfer of any amount.

I know, I know. I've been with Chase since the Washington Mutual days and it is our core account that we write checks from and pay everything from. I am also Chase Private Client. Change would be hard, lol. But I am not opposed to it and have been giving it more and more thought of late.

Re: New debit card for teens by Venmo

ptatohed — Wed, 01 May 2024 04:51:49 GMT

@IcyCool7227 wrote:
Why are you wasting money away having an account with Chase? Depending on your area there might be several options:

Take a look at: https://www.doctorofcredit.com/high-interest-savings-to-get/ . It includes checking with high balances but some have high requirements. That list doesn't include Empower Credit Union though of 5% up to $1K with a single direct deposit or ACH transfer of any amount.

That link is to savings accounts. I have no problem with savings. Much of our money is in very nice high yield savings and/or CDs and/or money market and/or T-Bills and/or stock market and/or other investments. What I am talking about is my Chase checking account that I have an average balance of ~$5000 at any given time, all year long.

Re: New debit card for teens by Venmo

FicoMike0 — Wed, 01 May 2024 13:49:17 GMT

As @keekers said, fidelity has many choices. They also bribed me $100 to open their bloom account. It looks silly, it has a separate app, but it pays ~5%. I used the same creds setting up the bloom app, so the bloom accounts show up in my standard fido app. Never use the bloom app. I keep liquid funds there, mostly. I was surprised to find I can trade stocks and options from bloom. I segregate any penny stocks to the bloom account.

As far as moving money, you can ACH directly to and from any fidelity account with external accounts.

I will say one drawback to fidelity is they charge a fee on option trades. Since I'm opposed to paying fees, I keep a robin hood account, which has no fee option trades, for that purpose.

Re: New debit card for teens by Venmo

FicoMike0 — Wed, 01 May 2024 21:44:48 GMT

Back to the original sub, one thing the teens like about thr fido youth is they own it. They're not an authorized user on your account, you are an authorized nosy Nellie on theirs. I'm sure there are tax implications. If Junior makes a killing in the market, the tax bill comes addressed to him.

Re: New debit card for teens by Venmo

CaneVariant — Wed, 08 May 2024 01:17:47 GMT

Unify Financial Credit Union has a nice HYCA. Balances between $2k - $15k earn 4%. Also, all fees including ATM fees waived. Just need $500 in direct deposit. I can confirm Alliant and Fidelity code as DD. Need to have 8 debit card transactions per month ($0.50 amazon card reloads work). Plus they pay fast on the 3 x$50 sign up bonuses. I made more in 2 months of dividends vs 10 years of regular checking. Only bummer was couldn't fund with debit/credit card.

ymmv

Cheers!

Re: New debit card for teens by Venmo

ptatohed — Wed, 08 May 2024 01:38:56 GMT

@CaneVariant wrote:
Unify Financial Credit Union has a nice HYCA. Balances between $2k - $15k earn 4%. Also, all fees including ATM fees waived. Just need $500 in direct deposit. I can confirm Alliant and Fidelity code as DD. Need to have 8 debit card transactions per month ($0.50 amazon card reloads work). Plus they pay fast on the 3 x$50 sign up bonuses. I made more in 2 months of dividends vs 10 years of regular checking. Only bummer was couldn't fund with debit/credit card.
ymmv
Cheers!

Nice. I was looking at the Primus Premium (and the Primus Perks too since you can have both). 5.07 HYCA. Free ATMs. I don't think DD is required.

https://primisbank.com/personal-checking/