Fidelity Youth Account
Strengths
- The only account in the panel where the teen truly invests on their own, fee-free and from $1.
- Cash yield (~3.8%) that no competitor in the segment matches.
- Auto-converts to an adult account at 18 — portfolio and history carry over.
Weaknesses
- Minimal parental controls: the teen runs the account, the parent watches.
- No FDIC insurance (SIPC instead) — and investing carries real market risk.
- Requires the parent to be a Fidelity customer; no chores or allowance tools.
$0/mo
$0 — no account fees, no minimums, zero commission on US stocks and ETFs. All ATM fees reimbursed (Visa/Plus/Star networks). $50 activation bonus (current offer).
An unusual model: the teen OWNS the account (not joint, not custodial) and is the sole decision maker. The parent — who must have a Fidelity account — gets full visibility, alerts on trades, transactions and spending, and can close the account, but cannot block categories or place trades.
Uninvested cash sweeps into a money market fund (~3.8% current yield) — by far the best cash return in the panel. In-app savings goals. $30,000 annual contribution cap.
Fidelity encryption, fraud monitoring, Customer Protection Guarantee. Built-in guardrails: no crypto, options, margin, penny stocks or IPOs.
No — SIPC coverage instead (brokerage account): protects against broker failure up to $500,000, NOT against market losses. Cash in the money market fund is not FDIC insured.
US stocks, ETFs and Fidelity funds (including ZERO funds at 0.00% expense ratio), fractional shares from $1 — the teen places their own trades, by design.
Dedicated Youth Learning Center (saving, budgeting, investing basics) plus learning by doing with real money.
24/7 phone, online chat during business hours, Fidelity branch network.
United States only (US residents with a US address).