Online-only bank account for a minor

[phildonnia]

I wanted to help my 13-year old son open an online bank account, for his personal use.  However all online banks that I've been to require the account holders to be 18 or older.

Right now, we have an account at VioBank, but it's only got my name on it.  I've given him the online password, as well as the ATM card and PIN.

1. Is there any way to get an online bank account in a minor's name?  (Even if it has my name on it too?)
2. Is there any possible problem for me in giving full access to an account in my name?  There are no checks, and the Debit card will reject overdrafts. 
3. Will the IRS let me claim "nominee interest" on an account that is only in my name?

[chicagomeg]

I use a CapitalOne Money account to give an allowance to my niece, who is 15. I highly recommend it. It's super easy to use (especially since I'm also a CapitalOne account holder, but I don't think that's a requirement) and I really like the app & features, including "putting away" part of the money into a bucket for later, without opening a separate savings account.

[Spiffy]

I second Capitol One Money. When my son started driving, I opened an account for him. I think his is called Capitol One 360. It is a debit card in his name, but I also have a log in and can see the account. I have a set amount auto transferred every month (I pay for his gas, even though he has a job now). He now has his pay check deposited into this account. There are no fees and no minimum balance restriction. It has worked very well so far.

[phildonnia]

Thanks!  I will check out the CapitalOne Teen account. I already have an account myself at CapitalOne, but I was not aware of the Teen account.

[MissPeach]

Schwab also has a custodial account option if you want a brokerage account.

[phildonnia]

Thanks everyone.  I'm looking into the Capital One option. 

We're not talking about major investments or high-finance here; a couple hundred dollars.  What I'm mainly interested in is having children learn the basics of personal finance, payment methods and buying decisions. 

My wife is concerned that at their age, then may they lack the discipline to use it properly and may squander or lose their saved money.  I consider this the major point of the exercise: if that happens, then good. Better than turning them loose at 18 with real credit cards and no experience.

[AMandM]

My kids had Ally accounts with me as custodian when they were under 18, so that's another option if Capital One doesn't work out for you.

[Sibley]

Just want to chime in that I don't believe minors are legally permitted to be sole account holders. There MUST be an adult on it, or a custodial account (which also has adults involved). Minors are not legally responsible or some such legal terms.

[secondcor521]

Since you're only talking a few hundred dollars, you could also just check with your local banks and credit unions.  My youngest offspring has a custodial checking account at US Bank and somehow an account just in their name at Zions Bank.  (I may be on the Zions Bank account as a custodian; it was opened about six years ago so I don't remember for sure.  I think @Sibley is correct about the legal requirement - it has to do with being able to enter into a contract (there is a contract which underlies the bank account) and a <18 year old isn't legally considered capable of informed consent.)

I'll second Schwab as well.  All my kids have small Roth IRAs there that they started rather easily.  Even if it's not used for brokerage account purposes now, it might be a way to introduce the idea to them now so that later they're intimidated by it less.  They could just park the money in a money market account or something and at least maybe get better than bank interest.