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Saving money is the first step toward achieving your financial goals. But not all savings goals are created equal. Some goals are short-term, like setting aside money for holiday gifts, while others may stretch years into the future, such as buying a home, paying for a wedding, or preparing for retirement. When your savings goals extend beyond a year or two, you may want to consider a long-term savings account.

But what exactly makes a savings account “long-term”? And with so many options — high-yield savings, certificates of deposit, money market accounts, or retirement-specific vehicles — which type is best for your situation?

Below, we’ll explore the essentials of long-term savings accounts, when to use them, and how they can help you reach your biggest financial milestones.

What Makes a Savings Account “Long-Term”?

In simple terms, a savings account becomes “long-term” when the money is meant to stay untouched for several years, and often much longer. Short-term savings, like an emergency fund or paying for an upcoming vacation, are designed for relatively quick use. Long-term savings, on the other hand, are earmarked for goals that might be a few years — or even decades — away.

While long-term savings accounts generally offer lower returns than investment accounts, they provide security, predictability, and liquidity. These three factors are especially important when you know you’ll need the money at a specific point in the future.

4 Best Types of Long-Term Savings Accounts

There is no single savings account that works for every saver. Instead, the best long-term savings option will depend on your timeline, your need for access to the funds, and how much you want to prioritize growth. Here are four types of accounts (including one investment account) that can help you reach your long-term savings goals.

1. High-Yield Savings Accounts (HYSAs)

A high-yield savings account is a type of savings account that offers a significantly higher interest rate, or annual percentage yield (APY), than a traditional savings account. These accounts are typically offered by online banks, which tend to have lower overhead costs than brick-and-mortar institutions and can pass that savings on to customers in the form of higher rates and lower (or no) fees.

HYSAs are usually insured by the Federal Deposit Insurance Corporation (FDIC), which means your deposits are covered up to $250,000 per depositor, per insured bank, for each account ownership category, even if the bank were to fail.

In addition to safety, HYSAs also offer easy access to your funds via debit card or transferring money online. That accessibility can make them a good fit for people who want to earn meaningful interest but still keep the option of withdrawing their money if a goal comes up sooner than expected.

If you’re saving for a home purchase, a new car, or a major renovation within the next few years, you may find an HYSA particularly useful. An HYSA is also a good place to stash your emergency fund (more on that below).

Recommended: Savings Goal Calculator

2. Certificates of Deposit (CDs)

Available at banks, credit unions, and brokerage firms, certificates of deposit are time-locked accounts where you agree to keep your money deposited for a set term — often ranging from six months to five years — in exchange for a fixed interest rate.

Rates on CDs are not only guaranteed but are generally higher than what you could earn in a traditional savings account. CDs are also typically insured by the FDIC or National Credit Union Administration (NCUA), which insures deposits at credit unions.

This type of long-term savings account can be ideal for savers with a clear timeline. For example, if you know you’ll need the money in three years for a down payment, a CD of the same length can help you protect your funds while also ensuring steady growth.

3. Money Market Accounts

A money market account (MMA) is an interest-bearing deposit account offered by banks and credit unions that blends features of both savings and checking accounts. MMAs typically offer higher rates than standard savings accounts, along with some of the conveniences of a checking account, such as checks and a debit card.

Similar to other types of savings accounts, MMAs are usually FDIC- or NCUA-insured. However, they often require higher minimum balances and may charge fees if you don’t meet monthly balance requirements.

An MMA can be a flexible option for long-term savers who want to earn more than the average savings rate but still want to access their funds occasionally. You might consider an MMA for an emergency fund, saving for a large purchase (like a car or wedding), or holding funds for future investments.

4. Retirement Accounts

Retirement-specific accounts — such as 401(k)s, Individual Retirement Accounts (IRAs), or Roth IRAs — are technically investment vehicles but are crucial for long-term savings. These accounts are designed specifically for retirement and offer unique tax advantages.

These accounts also allow savers with decades-long time horizons to benefit from compounding returns (which is when your returns start earning returns of their own) and, in some cases, employer contributions.

Because they are tied to investments like stocks and bonds, retirement accounts do carry risk, meaning balances can fluctuate in the short term. However, the long time frame can help smooth out those fluctuations. Plus, the tax benefits can make them hard to beat for anyone focused on retirement. Their tradeoff is limited liquidity, since withdrawing money early often results in penalties.

When to Use a Savings Account for Long-Term Goals vs an Investment Account

One of the biggest questions savers face is whether to use a savings account or an investment account for long-term goals. The answer largely depends on your exact timeline and tolerance for risk

Generally speaking, you want to use a savings account when:

•  You’ll need the money within the next one to five years.

•  You can’t afford to risk losing your principal.

•  Your goal has a fixed date, such as a wedding or tuition payment.

Consider using an investment account when:

•  Your goal is more than five years away.

•  You’re comfortable with short-term market fluctuations in exchange for the chance for higher long-term growth.

•  You’re saving for retirement or other distant financial milestones.

In short, savings accounts are about security and liquidity, while investment accounts are about growth and long-term wealth building.

Examples of Long-Term Savings Goals

What might you use a long-term savings account for? Here are three common examples.

Saving for a Down Payment on a House

Buying a home is one of the largest financial milestones most people will face. If you plan to buy in the next few years, keeping your down payment in a HYSA, CD, or MMA ensures your money is safe and growing without the risk of market downturns derailing your purchase plans.

Building a Fund for a Future Large Purchase (Like a Car or Wedding)

Whether you’re planning a dream wedding or upgrading your vehicle, large expenses require careful planning. By using a dedicated savings account — such as a money market or HYSA — you can separate these funds from your everyday spending while earning competitive interest.

Creating a Sabbatical or “Freedom Fund”

More people are saving for lifestyle choices, such as taking time off work to travel, study, or recharge. A sabbatical or “freedom fund” can provide peace of mind and flexibility. Keeping these funds in a long-term savings account like a HYSA, CD, or MMA, ensures they’ll be available when the time is right.

When to Consider an Emergency Savings Account

While long-term savings is essential for reaching your future goals, it’s equally important to have a separate emergency savings account.

This account provides a cushion for unexpected events, such as losing a job, facing a sudden illness, or needing to pay for urgent car or home repairs. Knowing you have funds available for emergencies can ease financial anxiety during a crisis. It also prevents the need to rely on high-interest credit cards or loans to cover surprise costs.

Experts generally advise setting aside at least three to six months’ worth of living expenses in a separate savings account earmarked for emergencies.

Emergency funds are generally best stored in HYSAs or money market accounts, where the money is accessible but still earning above-average interest. Having this safety net allows your long-term savings to stay intact, even when life throws an expensive curveball.

How to Use a Savings Account to Organize Your Long-Term Savings

Managing multiple goals can get tricky, but today’s digital banking tools make it easier. Many banks and credit unions allow you to:

•  Open multiple accounts or create customized sub-accounts and label each fund (e.g., “House Fund,” “Wedding Fund”).

•  Automate transfers so savings happen consistently without effort.

•  Track your progress toward each goal with visual dashboards.

By assigning each goal its own dedicated account or sub-account, you reduce the temptation to borrow from one savings pot to pay for a different goal or expense. It also makes it easy to track your progress, since you can see exactly how close you are to reaching each milestone.

The Takeaway

Long-term savings accounts are powerful tools for turning your future plans into reality. Whether you choose a high-yield savings account for flexibility, a CD for guaranteed returns, a money market account for occasional access, or a retirement account for decades-long growth, the right choice depends on your goals and time frame.

The best long-term savings account is ultimately the one that supports your unique plans, provides the right balance of safety and growth, and makes it easy for you to stay disciplined until you achieve the milestones that matter the most.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What type of account is best for long-term savings?

The best account for long-term savings depends on your goals and risk tolerance. For safe, predictable growth, high-yield savings accounts, certificates of deposit (CDs), or money market accounts are good options. If you want higher returns and can tolerate risk, retirement accounts like IRAs or 401(k)s and investment accounts may be better. Many people use a mix: savings accounts for stability and investment accounts for growth. Diversifying helps ensure your money grows while remaining accessible for future needs.

What is a long-term savings account called?

A long-term savings account doesn’t have a single universal name — it depends on the purpose and institution. Common options include certificates of deposit (CDs), individual retirement accounts (IRAs), 401(k)s, or investment accounts. These accounts are designed for goals like retirement, buying a home, or funding education. High-yield savings accounts and money market accounts can also serve mid- to long-term goals, especially if you want to maintain access to your funds.

What is considered long-term savings?

Long-term savings generally refers to money set aside for goals that are several years or even decades away, such as buying a house, funding a child’s education, or retirement. Unlike emergency funds or short-term savings, which cover immediate or near-future needs, long-term savings are designed to grow over time through interest, dividends, or investment returns. These savings often benefit from compound growth, which is when the returns you earn also earn returns, which can help your money grow faster.

How much should I have in my long-term savings account?

The amount you should have in long-term savings depends on your financial goals, age, and income. A common benchmark for retirement savings is to aim to save at least 15% of your pre-tax income each year, including any employer match. By age 30, some experts suggest having one year’s salary saved, increasing to three times by age 40, and six times by age 50. However, smaller long-term saving goals, like a down payment on a house, will require less.

What kind of savings account makes the most money?

If you’re strictly looking at savings accounts, high-yield savings accounts and certificates of deposit (CDs) typically earn the most interest. However, if your goal is maximizing long-term growth, investment-based accounts — such as brokerage accounts, individual retirement accounts (IRAs), or 401(k)s — generally offer much higher returns over time, though with more risk. Money market accounts can also pay higher rates than standard savings. The best choice depends on your timeframe, risk tolerance, and need for liquidity.

Photo credit: iStock/AndreyPopov

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A person typically has to be 18 to open their own bank account. That said, there are many options if you want to open a bank account for a child. In general, a bank account can be started at any age — as long as a parent or a guardian serves as a joint account holder.

Opening a bank account can help kids gain hands-on money skills and learn how a bank account works.

What Age Can You Open a Bank Account?

How old do you have to be to open a bank account? Usually, a person has to be 18 to open their own account. However, there isn’t a federal law that sets a minimum age at which you can have a bank account. Each state can have its own regulations regarding accounts for young savers and, depending on the state, financial institutions also may have the ability to set their own rules.

If you’re interested in opening an account and are unsure of age requirements, you may want to contact a few different financial institutions to ask if they have an account that suits your needs.

Can a Minor Open a Bank Account?

Usually, you must be 18, or the age of majority in your state, to open a bank account without a parent or guardian. But there are ways in which a minor can open a bank account and have his or her name on it. Some popular options include:

Custodial Accounts

A custodial account is an account an adult opens on behalf of a minor. The money held in the account belongs to the minor but is controlled by the custodian — usually a parent — until the minor reaches the age of majority (typically 18 to 21, but it may vary by state). There are a few different types of custodial accounts, including savings, educational savings, and investment accounts.

With this type of account, the minor won’t be able to access funds on their own, and they won’t be issued an ATM card. Generally, a custodial account changes over to an individual account when the child reaches adulthood.

Joint Accounts

A joint account may be possible, listing both a minor’s name and an adult’s name as co-owners, and they have equal control of the account. In some cases, the child must be between the ages of 13 and 17. In other cases, a younger child may be able to be a joint account holder, but perhaps with fewer privileges.

If the goal of the account is to help a minor learn financial responsibility or to give them control over their own money — but with an adult’s guidance — this might be the right choice. These accounts usually offer the parent the ability to monitor and control the account to some degree. For instance, the parent might set spending limits and get notified of transactions.

When minors reach the age of majority, they may choose to keep a joint account, but they also may want to transfer the account to just their name. As another option, they can open a new, individual account that better suits their current needs.

Recommended: Tips to Improve Your Money Mindset

Can a Minor Withdraw Money from a Bank Account?

If you’re wondering if a minor can withdraw money from a bank account, the answer is: It depends. With a custodial account, it is likely that the child cannot touch the money. The adult likely maintains control until the child reaches majority and becomes the account owner.

However, with a joint account, the child may be able to deposit and withdraw funds, just as the adult on the account can. That said, parental monitoring and controls can often be set up. In some cases, the child needs to be a certain age to withdraw money, or they might be unable to deposit or transfer money, as is the case with U.S. Bank.

What Age Can You Get a Debit Card?

Typically, checking accounts for kids and teens offer debit cards. The age at which a minor can get a debit card will be determined by the bank offering the account. This feature may only be available to teens, but some banks (such as Chase with its Chase First Banking program) allow six-year-olds and up to get debit cards.

There are also options like prepaid or secured debit cards that can be used by kids. Acorns Early offers them to children as young as age 6 to help them learn money management skills, while Greenlight says there is no minimum age for its debit card. It is likely, however, that you will find plenty of parental monitoring and controls in place, so it’s not as if the child can spend all their money on a whim.

What Will I Need to Open a Bank Account?

Whether you plan to open a bank account online or in person, you can expect to be asked for identification and certain types of documentation. Most account applications are straightforward and easy to complete; still, you may save some time by confirming that you meet all the criteria for a particular type of account before you get started.

You may have to provide the following information and documents when you set up a bank account:

•   Government-issued photo identification, such as a valid driver’s license or passport

•   Social Security number or other identification number

•   Contact information, including your full name, address and phone number

•   Proof of address, such as a utility bill or some other type of official document with your current address (you can print an online statement if you receive paperless bills and documents)

•   Student bank accounts may require proof of school enrollment, such as a student ID or acceptance letter

•   Joint account holders should be ready to provide required documents for all parties named on the account

This can mean that you may need one or more of the following forms of ID for the child who will be on the account:

•   Social Security card

•   Birth certificate

•   Passport

•   School photo ID

•   Immunization record

In addition to the above items, a minimum deposit to open an account may be required.

Recommended: How to Open a Bank Account

What to Consider When Choosing a Bank Account

Your goals for the account and how much participation you want the child to have can help you decide between a savings account vs. a checking account and between a custodial account or joint account.

Some other things to keep in mind as you compare accounts include:

Access

If you and/or your child expect to make frequent deposits and withdrawals, you may want to be sure the account comes with access to a large ATM network, easy online banking, or a convenient branch location.

Account Minimums

Many banks and credit unions have minimum balance requirements for savings and checking accounts. If you and your child would struggle to meet that threshold, you may want to look for an account that has a low or no minimum balance requirement.

APY

Earning interest isn’t necessarily a top priority with a bank account, but every little bit helps. Learning how an annual percentage yield (APY) works and how interest is calculated can be a good teachable moment for kids. What’s more, watching their money grow can be educational and motivational for young savers.

Recommended: APY Calculator

Customer Support

Does the financial institution have a reputation for reliable and helpful customer service? This could be important if you have questions or need help with disputing a transaction.

Fees

Fees can quickly eat away at a teen’s hard-earned money, especially if they’re using a non-network ATM to make withdrawals. You may want to find accounts that offer no or low monthly fees, ATM fees, overdraft fees and non-sufficient funds (NSF) fees.

Online/Mobile Experience

Whether you prefer online vs. traditional banking, be sure to check out the financial institution’s web and mobile platforms. It’s likely both parent and child will be using these tools on a regular basis.

Parental Protections

Though having a checking or cash management account can be a big step toward financial independence, it can be wise to put some parental controls on a minor’s account. Many accounts allow parents to monitor their child’s transactions so they can offer timely guidance.

Security

Will the money in the account be insured by the FDIC or NCUA? Will your personal and financial information be protected from unauthorized access with two-factor or multi-factor authentication? If one of your reasons for using a bank account is to keep your money safe, these can be important questions to ask.

Opening a Checking Account vs Savings Account for a Minor

As you consider options for opening a bank account for a minor, you may be faced with the decision of whether to go with a checking or a savings account. Here are some key differences to be away of; they can help you find the right fit:

The Takeaway

Though there is likely a minimum age to open a bank account on your own (typically 18), minors may be able to share a joint account with a parent or guardian until then. There are several types of accounts that kids and their parents might consider depending on their needs and goals, so it’s important to do a little research before choosing an account. Once a child is of legal age, they can shop for an account that suits their needs.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What is the youngest age to open a bank account?

In terms of at what age you can open a bank account, there’s no single rule. Typically, though, you must be age 18 or the age of majority in your state to have your own account. But, via joint accounts and custodial accounts, even younger individuals can have some banking privileges.

How do I open a bank account for a minor?

To open a bank account for a minor, you typically need various forms of identification, proof of residence, and an opening deposit. If the minor will share the account, they will need to provide identification as well.

Can a child get a debit card?

A child can get a debit card as part of the features of many joint accounts for minors. You may find them for kids as young as age six. There are also some secured or prepaid debit cards for minors, some with no minimum age available.

Photo credit: iStock/Chaay_Tee
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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Getting a check is typically good news — money is coming your way. However, it’s not available to spend just yet. First, you need to convert that check into cash. While there are many options for cashing checks that are free, some places charge a hefty fee for this service, shrinking the value of your check. Here’s how to cash a check for free (or a low fee).

1. Your Bank or Credit Union

Banks and credit unions generally allow you to cash a check for free if you’re an existing customer. As an account holder, you can typically cash or deposit a check in person at a branch, at an ATM, or through the bank’s mobile app. If you deposit a check at an ATM or through a mobile app, however, you may not get the entire amount of the check immediately. Usually the first $225 is available right away or in one business day, with the rest of the money being released on the second business day.

If you’re cashing a check in person, you’ll need to bring your debit card and, in some cases, a photo ID.

If you attempt to cash a check at a bank where you do not hold an account, you may be charged a fee, or the bank may simply refuse to cash the check. If you don’t have a bank account, opening a checking account will give you an easy way to cash checks for free.

2. Check Writer’s Bank

Another option for cashing a check for free, or a small fee, is to visit the bank where the funds were drawn from, also known as the issuing bank. You can find the name of the issuing bank on the front of the check.

Banks will typically cash a check for free if the check is written from one of their own accounts. However, some banks may charge a small fee for non-account holders, such as a percentage (like 2%) of the check. In some cases, a bank might offer free check-cashing up to a certain dollar amount (such as $25), with a fee for higher amounts. To cash a check as a non-account holder, you may also have to supply two forms of ID.

3. ​​Retail Stores

Some large retail stores and supermarkets offer check-cashing services, though there is typically a fee. For example, Walmart will cash payroll checks, government checks, tax refund checks, and some other types of pre-printed checks for a low fee (at the time of publication, up to $4 for checks up to $1,000; a max off $8 for larger checks). Certain grocery store chains, such as Kroger or Albertsons, also offer check-cashing for payroll, government, insurance, or business checks for a fee (typically around $4).

If you’re heading to a store to cash a check, be sure to bring a government-issued ID, such as a driver’s license or passport. Also keep in mind that retail stores might not cash certain checks, such as personal checks.

Recommended: Can You Cash Checks at an ATM?

4. Payment Apps

Some payment apps offer the ability to deposit checks into your account without a fee if you’re willing to wait a while to access the funds. PayPal and Venmo, for example, have mobile check deposit features that allow users to take a photo of a check and deposit it electronically into their account.

With PayPal, there is no fee if you’re willing to wait 10 days to access your funds. If you want expedited check cashing, the fee is 1% for payroll and government checks with a pre-printed signature (with a minimum fee of $5) and 5% for all other accepted check types, including hand-signed payroll and government checks (with a minimum fee of $5). Venmo offers similar terms.

5. Load Onto a Prepaid Card​​

Another way to cash a check (potentially for free) is to load it onto a prepaid card using the card’s mobile check deposit feature. Once the check clears, you’ll be able to access the funds as cash by making a withdrawal at an ATM. Depending on the service, you may be able to get some of the funds right away.

Before using this option, however, you’ll want to check whether your prepaid card provider charges fees for reloading the card and/or cashing a check, as terms vary by company.

Recommended: What Is a Second Chance Checking Account?

Where Not to Cash a Check

If you’re looking to cash a check for free or a low fee, you’ll generally want to avoid check-cashing stores. These stores specialize in cashing checks for individuals without bank accounts, and typically charge steep fees for their services. Costs can run as high as 10% of the check’s value, which can be a hefty sum, especially for large checks.

Some check-cashing services are located in low-income areas, often within or alongside payday loan shops. In some cases, a check-cashing outlet might try to lure you into taking out a high-interest payday loan, which can trap you into a cycle of fees and high costs.

Recommended: What to Know if You’ve Been Denied a Checking Account

The Takeaway

Banks generally allow you to cash a check for free if you’re an account holder. If you don’t have a bank account, you may be able to cash a check for free by visiting the check writer’s bank, loading it to a prepaid card, or using the check-deposit feature on a payment app. You can also cash payroll and government checks at some retail stores, but expect to pay a fee.

If you don’t have a bank account, opening one will provide a long-term solution for cashing checks. Cashing a check at a bank where you have an account is free and, typically, the most convenient method.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Where is the cheapest place to cash a check?

The cheapest place to cash a check is likely the bank or credit union where you have an account, where it’s likely to be free. Another option is to cash the check at the check writer’s bank; many banks offer this service for free or for a minimal fee if you are not an account holder. Retail stores like Walmart also offer check-cashing services at a low fee, typically under $4 for checks up to $1,000. Additionally, some prepaid cards and payment apps provide free mobile check deposit options if you’re willing to wait for processing.

Where can I cash a check without having a bank account?

If you don’t have a bank account, you may be able to cash a check at the check writer’s bank or at a large retailer or supermarket (for a fee). Other options include loading the check onto a prepaid card or using a payment app’s mobile check deposit feature. You can also cash a check at a check-cashing store, but this tends to be the most expensive option.

What app will cash a check immediately?

Several payment apps allow you to cash a check immediately, but it typically comes with a cost. For example, PayPal and Venmo also offer mobile check deposit services. If you can wait 10 days before the funds are available in your account, the service is free. If you want immediate access, you’ll pay a fee of 1% to 5%, depending on the type of check.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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The minimum age to get a debit card with a checking account at a bank or credit union in your name only is 18. However, it’s possible for kids as young as age six to get a debit card when opening a bank account with a parent. There are also fintech companies that offer debit cards for kids with no minimum age requirements.

Getting your child a debit card can be a great way to introduce them to the basics of money management, as long as you do so wisely.

Why Do Debit Cards Have Age Limits?

Debit cards have age limits because the age requirement for a bank account is usually set at 18. When you open a bank account, you’re entering into a legal agreement with the bank. Since minors cannot legally enter into contracts, banks require you to be a legal adult in order to open a bank account in your name.

There is, however, an exception to this answer to “When can you have a debit card?” Minors under 18 can qualify for a debit card if they’re opening a bank account with their parent’s help. In that case, banks may agree to issue a debit card that’s linked to a teen checking account for a minor aged 13 to 17 or a joint checking account that’s shared by the teen and their parents.

The minimum age to open a bank account can vary by bank or credit union and go even younger. Chase, for example, offers a bank account for kids as young as 6 that includes a debit card. Parents must be current Chase customers to open the account, and they will own the account.

If you’re interested in getting your child a prepaid debit card that isn’t associated with a specific bank account, there are platforms that allow that with no minimum age restrictions for kids. You can link your child’s debit card to your account to deposit funds and set controls on when and how they can spend the money.

💡 If you’re 18 or older and ready, you can get a debit card with SoFi.

Do Minors Need to Have a Debit Card?

Whether your minor child needs to have a debit card can depend on their financial situation and your personal preferences. Some scenarios to consider:

•   If your teen has a part-time job or runs their own business, then it may be worthwhile to give them a debit card that’s linked to a checking account. They can deposit their paychecks or earnings into their account and use their debit cards to make purchases.

•   Likewise, you might want your child to have a debit card if they have bills they’re responsible for paying. For example, you might expect your 17-year-old to pay for their cell phone or car insurance. If they have a debit card, they could use it to pay those bills themselves, versus you having to pay them and collect the money from your teen.

•   Some parents want their kids to learn how to handle money and think managing a debit card responsibly is a good step in that direction. Still others may want their child to be able to, say, buy a snack after school without carrying cash.

•   Whether a minor should have a debit card can also be a question of maturity and their sense of personal responsibility. If you have a child who’s constantly losing or misplacing their stuff or doesn’t necessarily grasp how money works, then a debit card might do more harm than good. But if your child seems capable and you want to improve their money mindset, it could be a wise move.

Is It Possible to Get a Debit Card as a Minor?

It’s possible to get a debit card as a minor, but a young person will likely need a parent or guardian’s help to do so. The options for getting a debit card as a minor include:

•   Opening a teen checking account at a bank or credit union

•   Opening a joint checking account with a parent or guardian

•   Getting a prepaid debit card

Getting a debit card that’s linked to a checking account may be preferable if you’d like your teen or child to be able to deposit money without you having to reload a debit card. On the other hand, a prepaid debit card may offer more control.

For instance, you might be able to set limits on how much your child can spend per day or where they’re able to use the card.

You can also control when funds are deposited to their prepaid account. If you want them to complete their weekly chores on time, for example, you could make that a condition of adding money to their card.

Benefits of Having a Debit Card as a Minor

There are several good reasons to consider giving your teen or child a debit card.

•   Financial responsibility. Having a debit card can be a good way for kids to learn how to manage money, including how to budget and prioritize saving. Even if your child’s only source of income is allowance, a debit card can still be a helpful tool for teaching them personal finance.

•   Convenience. If your child has their own debit card, they can use it to pay for things themselves without having to borrow from you and then pay it back later. Carrying a debit card also means your child doesn’t have to keep cash on them, which could get lost or stolen.

•   Online purchases. Using a debit card online can spare teens the trouble of having to visit their favorite stores to shop. They can also use their debit cards to enroll in streaming services or make in-app purchases with your consent.

•   Emergencies. A debit card could come in handy in an emergency situation if your child or teen needs money unexpectedly. For example, if your 16-year-old runs out of gas, they could use their debit card to fill up if they’re near a gas station, without having to call you for help.

In terms of what are debit cards good for, the short answer is quite a bit. Learning how to use a debit card at an early age can make it easier for kids and teens to master more complex financial concepts, such as a student checking account or a credit card, as they get older.

When Is the Right Time to Get a Debit Card?

The right time to get a debit card for a minor depends on the child’s age, maturity, and financial needs, as well as the parent’s comfort level. Generally, it may be a good idea to get your child a debit card if they have some form of income, whether it’s allowance, cash received for good grades, money from working a part-time job, or income that’s the benefit of a side hustle.

If you’re considering giving your child a debit card, it’s important to talk to them about what a debit card is and how it’s designed to work. Your child should understand that when they use their debit card to pay, they’re spending real money, even if cash isn’t physically leaving their hands.

It’s also helpful to discuss safety so they know how to protect their debit card. For example, you can explain that they shouldn’t share their PIN or debit card number or let a friend use their card. You can also go over how to stay safe when using their debit card online or when withdrawing cash at an ATM.

What to Look for When Choosing a Debit Card

If you’re ready to get a debit card for your teen or minor child, there are plenty of options to consider. As you compare different debit cards for kids, here are a few things to keep in mind.

•   Traditional or prepaid. The first thing to consider is whether you’d like to get a debit card for your teen that’s linked to a bank account or a prepaid debit card option. You might check the options at your current bank first to see whether it’s possible to set up a teen or joint checking account with a debit card before looking at prepaid platforms.

•   Fees. Account fees can nibble away at your child’s balance, so it’s important to check the fees you might pay, either for a traditional debit card that’s linked to a bank account or for a reloadable debit card for teens. The list might include out-of-network ATM fees, reload fees for prepaid cards, or monthly maintenance fees.

•   Access. It’s also important to look at how your teen or child will be able to manage and access their money. This may involve deciding whether to opt for a traditional bank vs. an online bank. If you’re opening a teen checking account at a brick-and-mortar bank, they should have branch and ATM access, along with online and mobile banking. A prepaid debit card might offer online and mobile banking access only. Many online banks partner with national ATM networks to offer fee-free access to ATMs, but it’s important to check to make sure.

•   Parental controls. The level of control you’ll have with a debit card for kids or teens can depend on where it’s issued. Your bank may offer debit cards for minors with parental controls built in. But if not, you might need to search for another card option that allows you the level of oversight you prefer.

The Takeaway

Teens and kids may qualify for a debit card, which can build financial literacy and money skills. However, finding the right one for them, with the level of parental control you like and the lowest fees, can take some research.

Opening a free checking account for your teen can be a great introduction to money, and it’s a simple way to give them access to a debit card. You might also be interested in switching banks yourself if you’re ready to take a break from paying high fees.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

At what age can a minor have a credit card?

Minors may be added to a parent’s credit card account as an authorized user as young as 13. Otherwise, they’ll need to be at least 18 with their own income in order to get a credit card in their name without a parent’s consent.

Is it better for a minor to have a debit or credit card?

A debit card can be a good stepping stone for a minor to learn how to manage money, without the risk of them creating debt. Once your child begins to learn the fundamentals of finance, you could add them as an authorized user to your credit card to help them learn how credit works.

Do all banks allow minors to have debit cards?

Every bank has its own policy with regard to who can have a debit card or checking account and whether that includes minors. If you’re unsure whether your current bank or credit union offers debit cards for minors, ask them. If the answer is no, you can look around for other banks that have teen or kids checking accounts that include a debit card. Prepaid cards may be another option.

About the author

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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