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5 Best Savings Accounts for Kids

Margarette BurnetteMarch 20, 2020

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Opening a savings account for your kid is a great way to teach money management skills and start him or her on the way to financial success. The best savings accounts for kids have great interest rates and few fees — like the best savings accounts for adults. They also have tools for parents to help their kids set goals and watch their money grow.

Here’s a look at NerdWallet’s favorites.

Summary of Best Savings Accounts for Kids

BankNerdWallet Rating APYLearn More
Capital One Kids Savings Account

Capital One Kids Savings Account

0.50%

With $0 minimum balance

Read review
Alliant Credit Union Kids Savings Account

Alliant Credit Union Kids Savings Account

1.35%

With $5 minimum balance

Read review
Bank of America Minor Savings Account

Bank of America Minor Savings Account

0.03%

With $25 minimum balance

Read review
Golden 1 Credit Union Youth Savings Account

Golden 1 Credit Union Youth Savings Account

at Golden 1 Credit Union,

Federally insured by the NCUA

0.20%

With $0 minimum balance

at Golden 1 Credit Union,

Federally insured by the NCUA

BECU Early Savers Account

BECU Early Savers Account

4.07%

With $0 minimum balance

Read review

Capital One Kids Savings Account

Capital One Kids Savings Account

APY

0.50%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Capital One 360 has a kids savings account that offers mobile deposit, a phone app and the ability to link to external bank accounts. It comes with an attractive annual percentage yield of 0.50%, and the online bank doesn’t charge a monthly service fee or require a minimum opening deposit.

 

Is there a special toy that is 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 for anyone younger than 18.

Read Full Review

Alliant Credit Union Kids Savings Account

Alliant Credit Union Kids Savings Account

APY

1.35%

With $5 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Alliant offers 1.35% 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 monthly fee for paper statements). The credit union operates mostly online, and its mobile apps are highly rated.

 

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 them; it also comes with a strong APY. Or your teen could open an Alliant teen checking account, which earns interest and comes with a debit card.

 

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 community in Illinois; or be a relative of a member. Or you can indicate support of an Alliant-affiliated nonprofit that helps foster children; Alliant will pay the $5 donation on your behalf.

Read Full Review

Bank of America Minor Savings Account

Bank of America Minor Savings Account

APY

0.03%

With $25 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Although online banking lets you do most basic banking tasks from home, some parents may want to give their children the chance to visit a branch. If that’s the case, Bank of America’s savings account for minors is a good option, as the bank has about 4,300 branches across the U.S.

 

The 0.03% APY is lower than the already dismal national average of 0.06%. The big plus? The account is free. It can be opened for children younger than 18 at a branch with a $25 minimum deposit.

Read Full Review
Golden 1 Credit Union Youth Savings Account

at Golden 1 Credit Union,

Federally insured by the NCUA

Golden 1 Credit Union Youth Savings Account

Golden 1 Credit Union Youth Savings Account

APY

0.20%

With $0 minimum balance

Bonus

N/A

at Golden 1 Credit Union,

Federally insured by the NCUA


Bonus

N/A

Why we like it

Golden 1 Credit Union has a youth savings account that lets kids deposit and withdraw money without an adult present, though an adult member does have to be a joint owner on the account. The savings account has no monthly fees, requires just $1 to open and earns a little bit more than the national average savings rate of 0.06% APY.

 

You can access the account via mobile app, but Golden 1 also participates in a shared branch co-op with other credit unions, so members can access more than 5,000 branches across the country. If you live in California, you may be near one of Golden 1’s own 72 statewide branches.

 

You and your child will need to be Golden 1 members to open an account, but the credit union has lenient requirements. You can be eligible if you live or work in California, belong to a partner employee group, or join the nonprofit Financial Fitness Association, which costs $8.

Read Full Review

BECU Early Savers Account

BECU Early Savers Account

APY

4.07%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Boeing Employees Credit Union is not an easy credit union to join, but its stellar promotional APY earns it in a mention on this list. You and your child could tap the Early Saver account's 4.07% 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. As with the Early Saver account, once the balance tops $500, the account's enticing APY drops significantly.

 

You have to be a 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.

Read Full Review

Using a kids savings account as a learning tool

Once you’ve opened an account, help your child to learn the best practices for managing money, like setting aside a portion of his or her 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 when to pay your child’s allowance in cash and when to go for prepaid debit cards or bank transfers.)

Last updated on March 20, 2020

Methodology

To determine the best accounts, we took a close look at 70 financial institutions, including the largest U.S. banks based on assets, debit card volume, Internet search traffic and other factors; the nation's largest credit unions, based on deposits as well as broad-based membership requirements; and other notable and/or emerging players in the industry.

Financial institutions surveyed include: Alaska USA Federal Credit UnionAlliant Credit UnionAlly BankAmerica First Credit Union, American Express, AspirationAssociated BankBank5 Connect, BankDirect, Bank of AmericaBank of InternetBank of the WestBarclays, BB&T, BBVABoeing Employees Credit Union, BMO Harris, Capital One 360Charles Schwab BankChaseChimeCITCitibankCitizens Bank, Comerica Bank, Commerce BankConnexus Credit UnionConsumers Credit UnionDiscover BankTIAA BankFidelityFifth Third Bank, First Citizens Bank, First National Bank, First Tech Federal Credit UnionGoBankGolden 1 Credit UnionGS Bank, HSBC Bank USA, Huntington BankKeyBankM&T BankNavy Federal Credit UnionPentagon Federal Credit UnionPNC, PurePoint Financial, Qapital, Radius BankRegions BankSantander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Simple, Star One Credit Union, State Employees' Credit Union of North CarolinaState Farm BankSuncoast Credit Union, SunTrust Bank, Synchrony BankTCF BankTD BankUnion Bank, UFB Direct, USAAU.S. Bank, Varo, Wells Fargo, Woodforest National Bank, and Zions Bank.

How we rate banks and credit unions