I feel dumb for not knowing about this specific account for my kids, which I think is ideal for them. I want to share this for fellow parents and teenagers.
https://www.fidelity.com/go/youth-account/overview
- To open, the parent/guardian must have an account at Fidelity. However, parents don't need to keep a balance.
- This is not a custodial account, which means kids can withdraw, invest their money. Parents can monitor their activities.
- There's no fee, no maintenance requirement.
- (like CMA) you get a debit card with unlimited ATM fee reimbursement. (I know it's technically not a bank account but should meet the banking needs)
- No zelle support but can link to Venmo, Cash app.
- (like Fidelity acct) you can do fractional ETF purchase. So you don't need $200+ to purchase VTI.
- There are some trading limitations (no short sell/margin/option trading) but should not matter to kids.
- Upon turning 18, kid can change to regular Fidelity account (it will delink from parents acct).
Submitted November 18, 2021 at 06:13AM by zacce https://ift.tt/3DwabDZ
