Children's current accounts, complete with IBAN and Visa Debit cards, are now offered by ING in Germany through an accompanying app.
ING Germany Introduces Junior Checking Account for Children and Young People
ING Germany has announced the launch of a new product, the "Junior Checking Account", designed for children and young people aged between 7 and 17 years old. This account offers a secure and age-appropriate access to the payment system, aiming to educate young people about financial matters.
Key Features of the Junior Checking Account
The Junior Checking Account comes with a free VISA debit card, allowing for payments anywhere and cash withdrawals at 97% of all ATMs in Germany and the Eurozone, with no fees. The account cannot be overdrawn for those under 18, and certain transactions, such as gambling, alcohol, and tobacco purchases, are excluded to ensure safe financial practices.
Parents can monitor their children's account balance and transactions directly through the Family Coaching program, with the option to set individual transaction limits for shopping, ATMs, and transfers. Upon reaching adulthood, the Junior Checking Account will be automatically converted to a classic checking account.
Financial Education and Transition
The account aims to introduce young people to financial topics, providing a foundational understanding of money management. While specific details on transitioning to a classic checking account at age 18 are not provided, the account's design suggests a gradual introduction to adult financial management tools.
Family Coaching Program
ING Germany has developed a "Family Coaching" program for customers and their children. However, in the context of the Junior Checking Account, the account itself serves as a tool to educate young people about financial matters, with parental involvement playing a key role.
Availability and Prerequisites
Initially, the Junior Checking Account is offered to parents whose children already have a securities account or a call money account with ING Germany. Starting next year, the bank will allow new customers to open an account. A prerequisite for opening the account is that the child already has or opens a Junior Savings Product or Junior Direct Deposit.
Bincy Kochalumoottil, the Head of Daily Banking at ING Germany, commented on the new product, stating, "We are excited to offer this account to our younger customers. It is an important step in helping them understand financial matters and develop good financial habits."
[1] Information sourced from ING Germany's website.
The Junior Checking Account, intended for children and young people aged between 7 and 17, comes with a free VISA debit card for payments and cash withdrawals, and it has features that ensure safe financial practices, such as being unable to be overdrawn and restricted transactions for gambling, alcohol, and tobacco purchases. Parents can monitor their children's account balance and transactions through the Family Coaching program while the account serves as a tool to educate young people about personal-finance matters.
