Step Review: Modern Banking For Teens (2024)

Teaching teens about money and sound financial management eventually comes down to them using real money.

Step has been showcased by teen stars such as Charlie D'Amelio on TikTok.

Step provides a “lite” version of a checking account for teens. You have to be 18 or older in the U.S. to open a checking account without a guardian. Those under 18 years of age can open a checking account with a guardian (i.e., joint checking), but there may be restrictions, depending on the bank they go with.

The Step Card processes like a credit card. But unlike a credit card, money is withdrawn directly from your Step account for each transaction. This means that teens can begin building credit with the Step Card without ever having to worry about missing payments or paying interest.

• Pay anywhere that accepts Visa, Apple Pay, and Google Pay
• Fund your account by debit card, Venmo, CashApp, or PayPal
  
• No interest or overdraft fees
  
• No minimum account deposit
  
• No minimum credit score requirement
  
• No age minimum (Step Black is 13+)
  
• Free FICO monitoring and reporting
  
• Free access to 30,000+ ATMs nationwide
  
• Instantly send/receive money from other Step apps/members
  
• Referral program: $1 per referral or $3 with direct deposit or $5 for Step Black members

Step Card Features

When you sign up with Step, you can choose from two secured credit cards: The Step Visa Card, which is free, and the Step Black Visa Signature Card, which has a $99 annual fee. Here's a close look at the features each card offers:

The Step Visa card is a free secured credit card that not only helps you build your credit score, but also comes with up to 3% cash back on purchases, and eligible direct deposit. At the time of this writing, you can earn up to 5.00% on your Step savings balance.

Key Features:

• Free
• Get paid up to 2 days early with eligible direct deposit of $500/month
• Earn 3% cash back at top brands
• Earn 2% cash back on dining and delivery
• Earn 2% cash back on charitable donations
• Earn 1% cash back on entertainment
• Earn 1% cash back on gaming
• Deposits are insured by FDIC up to $250,000 through Steps partnership with Evolve Bank & Trust.

Step Black Visa Signature Card

If you're willing to spend $99 yearly for enhanced Step benefits, consider signing up for the Step Black Visa Signature Card. This is a metal secured credit card, with enhanced security features. Here are the benefits that come with this card:

Key Features:

• $99 annual fee
• Over $500 in annual perks
• Get paid up to 2 days early with direct deposit
• Earn 8X points on up to $6000 of annual purchases with select Step Black retail partners
• Earn 3% cash back on dining
• Earn 2% cash back on charities
• Earn 2% cash back on entertainment
• Earn 1% cash back on everything else
• Access to Visa Signature benefits
• Up to $1,000,000 in FDIC insurance coverage through Evolve Bank & Trust

Withdrawing money is similar — you have to move money into another checking account. To date, cash withdrawals are not available either, but may be in the future according to Step.

For those that don’t have a bank offering teen checking, Step can be worth it. While it doesn’t have all the features that checking accounts offered by banks have, it has enough to meet most teens’ needs. Plus, its one of the only banking services that can help teens build credit without taking on the risk of credit card use.

If you want to compare similar banking services for teens, check out our checking accounts for kids review and best prepaid cards for teens. Some notable mentions are Axos First Checking and the FamZoo prepaid debit card.