“I find it unacceptable that the Post Office offers accounts where it is possible for children to have an overdraft.” By scrutinizing the Twint transactions carried out by her twelve-year-old son, Christel had the unpleasant surprise to see that the latter, for whom she recently opened a “Youth” bank account at PostFinance, had been able to spend more than his mother paid him as pocket money. And have a negative balance of 30 francs.
“When the account was opened, the employee did not tell me that the overdraft limit had been set at 100 francs and I signed the papers without realizing it,” explains the mother, who has a power of attorney. This Fribourgeoise cannot believe that minors are allowed to get into debt like this. “That’s not how we’re going to teach him to manage his budget,” she adds.
When contacted, PostFinance explained that “the overdraft limit for the ‘Youth 12-20’ customer group generally amounts to 100 francs and serves to simplify the guarantee of payment transactions.” For example, if the child needs to buy a bus ticket, but their balance is too low because their pocket money will not be paid until the next day, they can still make the payment thanks to this previously set limit. “But the account can only be overdrawn for 30 days. Then, it will have to be balanced again,” adds the financial body of the Post Office.
Without providing the number of its customers, PostFinance specifies, however, that “only very few young people use the overdraft limit”, but that this flexibility is appreciated by 15-20 year olds, who are following professional training. The company refers to the MoneyFit family guide, an educational offer about money. She also reduced the overdraft limit to zero for Christel’s son’s bank account, and even erased the 30 francs negative balance.
Negative balance banned elsewhere
At Raiffeisen, young people from the age of 12 can open a YoungMember private account, with the corresponding debit card and the possibility of paying by Twint. But spending is only possible within the limit of the current account balance. The same goes for the Cantonal Bank of Fribourg. From the age of 12, a child who has opened a junior account (intended for ages 6 to 14) can use a Mastercard debit card for in-store purchases and ATM withdrawals. But no overdraft is allowed.
