Citi Cards has launched a new prepaid cash card for teenagers which allows parents to control and monitor their children's spending.
Citi Cash Card is a prepaid card in the student's own name, but parents set the spending limit on by pre-loading it with money. Each purchase or withdrawal is deducted from the balance on the card. Unlike a credit card, there are no interest fees on purchases and no monthly payments.
The card can be used anywhere MasterCard is accepted worldwide, including ATMs.
Gina Doynow, Citi VP and business manager, says: "With the Citi Cash Card, students can show their parents they are responsible and capable, while parents can remain involved by guiding teens to wise spending decisions."
Citi Cash Card is available to young adults aged thirteen and older. Students under sixteen require a parent or other adult to apply for them and load money onto the card. Those aged sixteen and over can apply for the Citi Cash Card and load money on their own.
All Citi Cash Card account activity can be accessed online, as well as by telephone, enabling teenagers and parents to review recent purchases, obtain account balances, and load money on to the card.
The card is similar in operation to the Bank of America Visa Buxx card, first launched by the east coast bank in September 2000.