Step Teen Checking Review 2024

Our Step Teen checking account review looks at fees, minimum deposit amounts, and more. Learn about this checking account and how it benefits teens.
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Step Bank is an online-based financial institution. It offers a comprehensive mobile app with a user-friendly interface.

Its services are offered through Evolve Bank and Trust, an FDIC-insured financial institution.

Step provides savings, checking, and credit accounts and related services and allows young people to begin investing their money. 

Step Teen Checking Account At-a-Glance

Step Bank was created specifically to serve people aged 18-25. With the intention of providing financial literacy opportunities to young people, Step helps young people secure their financial future through building credit history, investing, saving, and spending.

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Step Teen Checking Pros & Cons

If you need clarification on whether a Step account is the best option for you or your teen, consider the pros and cons of this account.

Pros

  • Step does not require a monthly balance
  • Users can start and maintain a Step bank account without any required deposit amount
  • Step account users can build credit
  • Step users will enjoy a fee-free bank account, including fees like monthly maintenance fees, overdraft fees, ATM fees, late fees, interest charges, or minimum balance fees
  • Step banking services are provided through Evolve Bank and Trust, an FDIC-insured financial institution. Because the maximum Step balance limit is $10,000, the entire account balance is protected by the FDIC
  • Step only lets you spend the amount in your account. A purchase will decline if it’s more than the amount in your account. This eliminates the possibility of your account being overdrawn and charged an overdraft fee
  • Users earn above-average interest on a Step savings account
  • Step has an extensive cash-back reward system
  • With an extensive ATM network, Step users can access these ATMs anytime

Cons

  • Because Step is for first-time banking customers, account features are simple and limited. This limits what customers can do with their Step account
  • Users cannot deposit any cash or physical checks into their Step account. Customers can only deposit into their Step account via another linked bank account, linked debit card, or direct deposit
  • Step has a $10,000 maximum balance at all times for every user
  • ATM withdrawal limit of 250 daily. Step users can access over 30,000 ATMs nationwide, but only 250 in cash can be withdrawn daily

Overall Impression

A Step bank account is an excellent checking account option for young people aged 18-25 with little personal finance and banking experience.

The features of a Step account allow young people to spend and save money, providing them with invaluable experience managing their own money. There is no minimum monthly balance, a low maximum monthly balance, no overdraft fees, and limited features. 

Step account features are limited to essential banking functions, such as direct deposit, sending and receiving money, limited daily and monthly transaction amounts, and limited monthly ATM withdrawals.

This simple account eliminates the confusion of a higher steaks bank account, allowing users to develop their money management skills. 

Step Compared to Other Similar Bank Accounts

Other banks and financial institutions offer similar products, such as the Step Teen banking account and services.

While the following financial institutions may not offer accounts specifically catering to the needs of teenagers and young customers, they offer user-friendly and accessible products. 

Chime

Chime is an online financial institution offering users checking and savings accounts. Chime offers checking and savings accounts and a secured credit card.

Chime customers must have a checking account with Chime to have a Chime savings account. Users cannot deposit money directly into their savings accounts and instead must deposit cash from their checking account into their savings.

Rates

Chime consistently offers savings account interest rates (APY) higher than the national average. However, other online banks and financial institutions may offer more competitive rates. 

Fees

There is no overdraft fee up to $100. Users who qualify for Chime’s “Spot Me” feature and deposit $500 or more via direct deposit can overdraw up to $200 with no fee. There are no minimum deposit fees or monthly fees. 

Accessibility

Chime is an exclusively online financial institution with no physical branches. Chime has an extensive ATM network with over 38,000 fee-free ATMs. However, there is a $2.50 ATM fee to use any ATM outside of Chime’s network.

Minimum Deposit

There is no minimum deposit to start or maintain a Chime checking account. 

Tools

Chime offers many useful tools, including a Visa debit card. The Chime Second Chance banking tool allows users to open an account without credit checks. Chime also offers a secured credit card, allowing customers only to spend what is deposited into their accounts, allowing users to build credit without the risk of debt.

Chime reports to all three major credit bureaus, allowing users to create new credit or fix poor credit. The automatic savings option rounds each purchase to the nearest dollar and deposits the difference into their savings account. 

User Experience

Chime offers a comprehensive mobile app where you can complete every aspect of your banking needs except for cash deposits.

However, the app provides a feature that shows users where the nearest in-network ATMs are. Like their app, Chime’s website is robust, offering the same features as the mobile app. Chime provides a very user-friendly experience. 

Customer Service

Chime offers a customer service hotline for customers and can be accessed 24/7. Because of Chime’s comprehensive and robust website and mobile app, many questions and needs can be met with these features. 

Greenlight

Greenlight offers banking services designed specifically for families. Parents and guardians can manage a checking account online through Greenlight, especially for children under the age of 13. 

Rates

Greenlight offers different APY amounts that vary depending on the membership. The largest rate that Greenlight offers is much higher than the national average. 

Fees

There is a monthly fee that varies depending on the type of membership.

The Greenlight Core membership is $4.99/month, the Greenlight Max membership is $9.98/month, and the Greenlight Infinity membership is $14.98/month.

If you opt for a debit card associated with your Greenlight checking account, there is a one-time fee of $9.99. Beyond these, no other fees are associated with having a Greenlight checking account. 

Accessibility

There are no physical Greenlight branches. Greenlight’s mobile app and website interface are highly user-friendly and provide users with all the necessary tools to maintain their accounts. 

Minimum Deposit

There is no minimum deposit required to start or maintain a Greenlight account. 

Tools and Extras

Greenlight offers first-time users a one-month free trial. Users can schedule and automate regular transfers to their child’s Greenlight account. The debit card provided by Greenlight is MasterCard branded, and Greenlight is FDIC insured. 

Customer Service

The Greenlight website offers extensive customer service, with a help center that will direct you to answers to questions about all aspects of your account. They also have customer service features, including calling, texting, or chatting with customer service representatives to answer your questions, comments, or concerns. 

How the Step Teen Checking Account Works

Step Teen Checking Account is a checking account that can be opened by or on behalf of teenagers and young adults. Users do not have to be 18 years old to open a Step checking account. 

With the help and permission of a parent or guardian, a child of any age can open a parent-managed account. There is no minimum balance to start or maintain your Step account. Direct deposit can be set up with your Step account, and an outside bank account can deposit money into your Step account. 

When customers set up a monthly qualifying direct deposit, their Step Teen Account will accrue a competitive APY. Your Step debit card and account can also build a positive credit score. 

How to Add Money to a Step Teen Checking Account? 

Similar to most other checking accounts, this can be done in a few ways:

  1. You can link a debit card connected to another checking account and transfer funds this way. 
  2. Financial services such as Zelle, CashApp, Venmo, and other money transfer services can be linked to your Step account, and those funds will be directly deposited into your Step account. 
  3. Direct deposit from an employer can be set up to deposit funds into your Step account.

Who Is Step Teen Checking Account For?

The Step Teen Checking Account allows people under 25 to have a simple bank account. The account is geared toward young people with no financial history and needing more basic financial literacy. This allows young users to gain financial literacy and increase the longevity of their financial health and freedom. 

Rating the Features

The Step Teen Bank Account offers features and a user-friendly experience. This straightforward account is free of frills and performs the essential functions of a simple checking and savings bank account

User Experience and Accessibility

Signing up for a Step Teen Account is simple.

Because the account has so few features and is simple, maintaining the account is relatively straightforward.

Users do not need to maintain a monthly balance and won’t be penalized for inactivity.

The Step website has a comprehensive FAQ section that answers many general questions.

You can contact Step directly via email with specific questions or concerns that may not be answered on Step’s website or mobile app. 

Because Step functions solely online and you can perform most aspects of banking online or via the Step app, there are no physical branches. Step customers can use an extensive network of ATMs without a fee. 

Fees

There are no fees associated with having a Step Teen checking account.

Because Step will not let account holders spend more than the amount in their account, the account can’t fall into overdraft. There is no monthly maintenance, insufficient funds, debit card, inactivity, or any other fees for Step Teen checking users. 

Rates

The Step Teen Checking Account offers users an APY that is considerably higher than both the national average and well above the interest rates of competing financial institutions providing similar products to the Step account. 

Minimum Deposit

Step does not require a minimum deposit. They also do not require a minimum balance to maintain your Step account. Your Step Teen Checking Account enforces a maximum $10,000 balance. 

Tools and Extras

The actual functions of the Step Teen Checking account are fairly limited.

Because this product is geared toward consumers who lack a financial history or financial literacy, Step has opted to keep its products simple, without frills.

The account functions are limited to direct deposit, sending and receiving money between other bank accounts, daily and monthly transaction amounts, and monthly ATM withdrawals. 

Beyond their checking account product, Step provides investment, credit, and savings products.

With the primary focus of Step being to offer young people financial opportunities and education, the inclusion of these other products aims to do just that. 

Safety and Security

Evolve Bank & Trust, an FDIC-insured financial institution, manages Step’s banking features. Because of this, your Step Teen Bank Account is FDIC insured. Step provides fraud protection and notifies customers of suspicious activity. 

The Step debit card is backed by the VISA’s Zero Liability Policy, protecting clients from unauthorized use.

Getting Started

Because Step is an online financial institution, the signup process is completed online through the website or mobile app. Children 13 years or older with their device can sign up for their account without the help of an adult. 

Users provide basic biographical information, such as name, date of birth, address, and social security number. Once you create your account, you can access your account at any time and anywhere from the Step website or mobile app. 

Frequently Asked Questions (FAQs)

What is a sponsor?

A person must be 18 years old to open and maintain a bank account in the United States. For any Step user that is under the age of 18 years old, a sponsor is needed. A Step sponsor is someone over the age of 18 years old. Your sponsor will have access to see what is happening with your Step account until you are 18 years old and can legally maintain your account privately.

Where can I use my Step card? 
Because your Step card is a Visa card, it can be used anywhere Visa is accepted.

About Author
Madeline Marino
Madeline Marino writes about student loans and college student finances. She received a bachelor's degree in English from the University of Nevada, Reno, where she grew her passion for helping college students manage their finances. Her work appears in several publications, including Nevada Today.