BEST OF

4 Best Savings Accounts for Kids

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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

Capital One Kids Savings Account

Not yet rated

Capital One Kids Savings Account

APY

0.30%

With $0 minimum balance

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 external bank accounts. It comes with an attractive annual percentage yield of 0.30%, and the online bank doesn’t charge a monthly service fee or require a minimum opening deposit.

Is there a special toy 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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Alliant Credit Union Kids Savings Account

Not yet rated

Alliant Credit Union Kids Savings Account

APY

0.55%

With $5 minimum balance

Bonus

N/A

Why we like it

Alliant offers 0.55% 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.

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.

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.

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Bank of America Minor Savings Account

Not yet rated

Bank of America Minor Savings Account

APY

0.03%

With $25 minimum balance

Bonus

N/A

Why we like it

If you are looking for an account at a large institution Bank of America’s Minor Savings Account is worth a try. The account has no monthly fee for children younger than 18. Customers have access to 17,000 Bank of America ATMs and 4,300 branches across the U.S.

Low savings rates are typical at large banks, however, and the Minor Savings Account earns only 0.03% APY. (The national average savings rate is 0.06%.) There is a $25 minimum opening deposit.

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BECU Early Savers Account

4.0

NerdWallet rating 
BECU Early Savers Account

APY

2.02%

With $0 minimum balance

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 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. As with the Early Saver account, once the balance tops $500, the account's 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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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 how to pay your child’s allowance with kid-focused prepaid debit cards and banking apps) You may also want to take a look at the best high-yield online savings accounts for top 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 4, 2021

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 Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Associated Bank, Axos Bank, Bank5 Connect, Bank7, Bank of America, Bank of the West, Barclays, BB&T, BBVA, BMO Harris, Boeing Employees Credit Union, Capital One 360, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Bank, Comenity Bank, Comerica Bank, Commerce Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, E*TRADE Bank, Fifth Third Bank, First Foundation Bank, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GoBank, Golden 1 Credit Union, Goldman Sachs Bank USA, HSBC Bank, Huntington Bank, KeyBank, Live Oak Bank, M&T Bank, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Radius, Redneck Bank, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, State Employees' Credit Union of North Carolina, Suncoast Credit Union, SunTrust Bank, Synchrony Bank, TAB Bank, TCF Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank, USAA, Varo, Vio Bank, Wells Fargo, Woodforest National Bank and Zions Bank.