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4 Best Savings Accounts for Kids

The best savings accounts for kids have strong rates on smaller balances and no monthly fees.

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Senior Writer
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Assigning Editor
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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 may also have highly rated mobile apps and educational material to help children learn about money. 

We reviewed more than 90 financial institutions to create this list. Of those with savings accounts specifically for kids, the top four this year are at credit unions. Credit unions sometimes have limits on who can join as a member, but three of the four institutions below have fairly broad membership rules, so there's a good chance that you could be eligible to apply for an account. If you want to go with a bank instead, keep reading. We give suggestions on where to find top alternatives.

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

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 may also have highly rated mobile apps and educational material to help children learn about money. 

We reviewed more than 90 financial institutions to create this list. Of those with savings accounts specifically for kids, the top four this year are at credit unions. Credit unions sometimes have limits on who can join as a member, but three of the four institutions below have fairly broad membership rules, so there's a good chance that you could be eligible to apply for an account. If you want to go with a bank instead, keep reading. We give suggestions on where to find top alternatives.

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

🤓Nerdy Tip

The Fed lowered its benchmark rate on Sept. 18, 2024. Saving in a high-yield account means you can still earn some of the best rates around, even if APYs start falling.

Best Savings Accounts for Kids

NerdWallet rating 

4.5

/5
Alliant Credit Union Kids Savings Account
APY

3.10%

With $100 min. balance for APY

Bonus

N/A

Why We Like It

Alliant offers a 3.10% APY, so your child can earn a solid return, though the account earns interest only if the balance is at least $100. The account has no monthly fee as long as you enroll in electronic statements (otherwise there’s a $1 fee for each monthly paper statement). The credit union is online only, 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 for you. Parents of older children can open a standard Alliant savings account; it comes with a similar APY. They could also open an Alliant teen checking account, which earns interest and comes with a debit card. It 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 you join an Alliant-affiliated nonprofit that helps foster children; Alliant will pay the $5 fee to join on your behalf.

NerdWallet rating 

4.5

/5
First Tech Federal Credit Union Start Up Savings
APY

5.00%

With $0.01 min. balance for APY

Bonus

N/A

Why We Like It

First Tech Start Up Savings offers a healthy 5.00% APY on balances below $1,000. The yield drops to 0.10% on amounts above that. The minimum balance to open an account is $25, and there is no monthly fee.

A parent or guardian will need to be a joint owner of Start Up Savings, and you and your child will need to be credit union members. There is no minimum age requirement for your child; once they turn 18, Start Up Savings will convert it into a standard account.

Credit union membership is heavily geared toward those who live or work in parts of Oregon, but anyone can be eligible to apply if they join the Computer History Museum or the Financial Fitness Association, two partner organizations. However, there may be a cost to join the partner organization. The Financial Fitness Association, for example, has an $8 membership fee.

You can visit a local branch to enroll in a partner organization and apply for an account. If you are already eligible to join First Tech, you can also apply by calling customer service.

NerdWallet rating 

4.5

/5
Service Credit Union Primary Savings
APY

4.00%

With $0 min. balance for APY

Bonus

N/A

Why We Like It

A Primary Savings Account is available for kids and adults. In fact, it’s required in order to be a credit union member. The account earns a competitive 4.00% APY on balances up to $500. Amounts above that earn much less — only 0.25%. The minimum to open an account is $5.

For children, Service Federal Credit Union offers a youth-oriented website with online games, music videos and learning materials to help teach the value of money. Teens can open a Primary Savings Account online, but if your child is 12 or under, you’ll need to call customer service to open an account. You could also visit a branch, but they are primarily on military bases in and around the state of New Hampshire, or in Germany.

Credit union membership is open to those who have served in the military or Department of Defense, their families and select employers. You can also be eligible to apply if you join the American Consumer Council (the credit union offers a promo code so you can enroll for free) or the Financial Fitness Association, which has its own membership fee, currently $8.

NerdWallet rating 

4.5

/5
BECU Early Saver Youth Account
APY

6.17%

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. The Early Saver account lets you and your child tap a 6.17% APY on the first $500. But a lackluster 0.50% APY applies to any larger amount. Early Saver has other hallmarks of a good savings account, however, including no monthly maintenance fee and no minimum deposit requirement.

The BECU Early Saver Youth 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 a 6.17% on the first $500. As with the Early Saver account, once the balance tops $500, the APY drops significantly. If you’re planning on depositing more than $500 initially, it may be worth looking at a high-yield savings account instead. Some of the best accounts have rates above 3% on all balances.

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.

Kids savings account: Consider high-yield online savings

Many top kids savings accounts offer strong rates, but only up to a certain amount, say $500 or $1,000. This could be a great choice for kids who are just starting to save, but if their balance climbs above the limit, it may be better to look at regular account options. The best high-yield savings accounts typically earn above 4% APY or more, and with fewer balance restrictions, so they can make great long-term savings accounts.

Some strong savings accounts are not marketed to kids but can be opened by an adult who serves as a custodian until the child is old enough to control the account. Alternatively, a parent or guardian can simply open a high-yield savings account and give it a nickname to reflect that its funds are for the child, while the adult owns the account. 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.

Beyond savings, if you have a teen who would like a separate spending account, check out our list of best teen checking accounts.

High-yield account APYs compared to brick-and-mortar banks

October 2024

September 2024

August 2024

July 2024

June 2024

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April 2024

March 2024

February 2024

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December 2023

November 2023

October 2023

September 2023

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July 2023

June 2023

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April 2023

March 2023

February 2023

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December 2022

November 2022

October 2022

September 2022

August 2022

July 2022

June 2022

May 2022

Online institutions

Ally, Member FDIC.

4.00% APY.

4.20% APY.

4.20% APY.

4.20% APY.

4.20% APY.

4.20% APY.

4.25% APY.

4.35% APY.

4.35% APY.

4.35% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.00% APY.

3.85% APY.

3.75% APY.

3.75% APY.

3.40% APY.

3.40% APY.

3.30% APY.

3.30% APY.

3.00% APY.

2.35% APY.

1.85% APY.

1.85% APY.

1.25% APY.

1.00% APY.

0.60% APY.

CIT Bank, Member FDIC.

4.70% APY.

4.85% APY.

5.00% APY.

5.00% APY.

5.00% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

4.95% APY.

4.85% APY.

4.75% APY.

4.50% APY.

4.05% APY.

4.05% APY.

4.05% APY.

3.85% APY.

3.60% APY.

3.00% APY.

2.10% APY.

2.10% APY.

1.90% APY.

1.20% APY.

0.90% APY.

LendingClub, Member FDIC.

4.70% APY.

5.00% APY.

5.00% APY.

5.00% APY.

5.00% APY.

5.00% APY.

5.00% APY.

5.00% APY.

5.00% APY.

4.65% APY.

4.65% APY.

4.50% APY.

4.50% APY.

4.50% APY.

4.50% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.00% APY.

4.00% APY.

4.00% APY.

3.60% APY.

3.25% APY.

3.12% APY.

2.07% APY.

2.07% APY.

2.07% APY.

1.26% APY.

0.85% APY.

National brick-and-mortar banks

Bank of America, Member FDIC.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

Chase Bank, Member FDIC.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

Weigh credit union requirements

Credit unions, including the ones on this list, can be great options for kids savings accounts. But note that membership is likely restricted. Institutions with relatively easy membership requirements might let you join if you also join a qualifying organization, such as a nonprofit. But that can come with a fee. If you wouldn’t otherwise see a benefit in joining the linked organization, you may want to look into high-yield savings accounts at financial institutions that don’t have member requirements.

Use 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-interest 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 March 30, 2023

Methodology

We took a close look at over 90 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.

Financial institutions and providers surveyed are: Affirm, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Global Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.