BEST OF

4 Best Savings Accounts for Kids

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Opening a savings account for your kids is a great way to teach money management skills and start them on the way to financial success. The best savings accounts for kids earn interest and have no or low monthly fees — like the best savings accounts for adults. They also have convenient tools, such as automatic savings transfer, for parents to help their kids set goals and watch their money grow.

Here’s a look at NerdWallet’s favorite savings accounts for kids.

Best Savings Accounts for Kids

Our pick for

Credit unions

BECU Early Saver Youth Account

Not yet rated

BECU Early Saver Youth Account

APY

2.02%

With $0 min. balance for APY

Bonus

N/A

Why we like it

Boeing Employees Credit Union's membership criteria is limited but its stellar promotional APY earns it a mention on this list. You and your child could tap the Early Saver account's 2.02% APY on the first $500 in deposits. A lackluster 0.02% APY applies to the rest of the savings, but it has other hallmarks of a good savings account, including no monthly maintenance fee and no minimum deposit requirement.

The BECU Early Saver Account is available for kids 17 and younger. Once they turn 18, they can convert their kids savings account into a Member Advantage account, the credit union’s premier savings option. The Member Advantage account earns 0.50% on the first $500. As with the Early Saver account, once the balance tops $500, the APY drops significantly.

You have to be a BECU credit union member to open an account. Membership is mostly limited to people who live or work in Washington state — or a few counties in Oregon and Idaho — as well as Boeing employees or members of partner associations.

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Our pick for

Minimum deposit

Capital One Kids Savings Account

4.5

NerdWallet rating 
Capital One Kids Savings Account

APY

0.30%

With $0 min. balance for APY

Bonus

N/A

Why we like it

Capital One 360 has a kids savings account that offers a phone app with mobile deposit and the ability for parents to link their Capital One or external bank accounts. It comes with an attractive annual percentage yield of 0.30%, and the bank doesn’t charge a monthly service fee or require a minimum opening deposit.

Is there a special toy or game at the top of your child’s wish list? You and your child can create an automatic savings plan with the account, establish goals and track the balance as it grows. The account can be opened by an adult for anyone younger than 18.

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Our pick for

Credit unions

Alliant Credit Union Kids Savings Account

5.0

NerdWallet rating 
Alliant Credit Union Kids Savings Account

APY

0.60%

With $100 min. balance for APY

Bonus

N/A

Why we like it

Alliant offers 0.60% APY, so your child can earn a solid return, though the account earns interest only if the balance is at least $100. The account is free as long as you enroll in electronic statements (otherwise there’s a $1 fee for each monthly paper statement). The credit union operates online, and its mobile apps are highly rated. In addition, Alliant allows parents to open supplemental savings accounts to help kids reach specific goals. So they could open an account for regular savings and a separate one to put away money for a new bicycle, for example.

The kids savings account is available to children age 12 and younger. There’s an opening deposit requirement of $5, but Alliant will pay it. Parents of older children can open a standard Alliant savings account for their teen; it also comes with a strong APY. They could also open an Alliant teen checking account, which earns interest and comes with a debit card. It also has spending limits and allows parents to set up transaction alerts to monitor spending.

Before you open this or any other account at Alliant, you’ll have to become a member.

Requirements to apply for membership are broad: You need to be an employee, or former employee, of an eligible company; be a member of a qualifying organization; live in a qualifying area near Alliant’s Chicago headquarters; be a relative of a member; or join an Alliant-affiliated nonprofit that helps foster children (Alliant will pay the $5 fee to join on your behalf).

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Our pick for

Branch access

Regions Savings for Minors account

3.5

NerdWallet rating 
Regions Savings for Minors account

APY

0.01%

With $0 min. balance for APY

Bonus

N/A

Why we like it

For customers who are looking for a larger regional institution with bank branches, Regions might be worth a look. The bank has 1,900 ATMs and 1,300 branches throughout the South and Midwest. The bank’s website also has calculators that parents can use to help older kids budget and plan for savings growth.

There is a $5 minimum opening deposit and no monthly fee, which is a plus. But it has an extremely low savings rate — the Regions Savings Account for Minors earns only 0.01% APY. (The national average savings rate is 0.07%.) Low rates are typical at big banks, however. If you are looking to bank at a large institution, and maximizing rates isn’t a strong consideration, this account is worth a look.

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There are also some strong savings accounts that aren't marketed to kids but can be opened as custodial accounts. This type of account is opened by an adult on behalf of a minor until the minor reaches adulthood and takes control.

Not every bank offers this option, however. You can take a look at NerdWallet’s best savings accounts — they generally have no monthly fees and offer strong rates — and then inquire with the financial institution about its policies for opening a savings account for your child. Or, you can choose one from this list.

Using a kids savings account as a learning tool

Once you’ve opened an account, help your children learn the best practices for managing money, like setting aside a portion of their allowance and understanding the difference between short- and long-term savings. Start early enough, and your children will be seasoned pros by the time they turn 18. (Read tips on how to pay your child’s allowance with kid-focused banking apps). You may also want to take a look at the best high-yield online savings accounts for top online options for building your own savings balance.

» Saving for a short-term goal? Check out NerdWallet's best one-year CD rates.

Last updated on February 3, 2022

Methodology

We took a close look at over 80 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.

To recap our selections...

NerdWallet's Best Savings Accounts for Kids