Finder's pick: Greenlight Max
- Spend, save & invest in one app
- Up to 5% on savings rewards
- Uo to 1% cashback on debit card purchases
The best kids’ savings accounts emphasize high interest earnings while keeping fees low or nonexistent so that young savers can stash away more of their money. See which of these top accounts suits your goals for your kids — whether that’s earning interest, setting savings goals or introducing advanced tools like investing.
Top savings accounts help your kids grow their money with high rates. But since most kids savings accounts don’t rise above a 1% APY, we’ve also included adult savings accounts that allow you to open it jointly with a minor or as a custodial account.
Discover Online Savings Account
Finder Rating: 4.6 / 5 ★★★★★
APY | 3.60% |
---|---|
Fee | $0 |
Minimum deposit to open | $0 |
UFB Preferred Savings
Finder Rating: 5 / 5 ★★★★★
APY | 5.02% |
---|---|
Fee | $0 |
Minimum deposit to open | $0 |
Capital One 360 Performance Savings
Finder Rating: 4.6 / 5 ★★★★★
APY | 3.30% |
---|---|
Fee | $0 |
Minimum deposit to open | $0 |
Ally Bank Online Savings Account
Finder Rating: 4.4 / 5 ★★★★★
APY | 3.40% |
---|---|
Fee | $0 |
Minimum deposit to open | $0 |
Alliant High-Rate Savings
Finder Rating: 4.3 / 5 ★★★★★
Alliant wins best for custodial accounts since it offers several custodian accounts like CDs and a noncustodial kid's savings account that also earns a spot on our best list.
APY | 3.10% |
---|---|
Fee | $1 per month |
Minimum deposit to open | $5 |
Alliant Kids Savings Account
Finder Rating: 4.6 / 5 ★★★★★
APY | 2.95% |
---|---|
Fee | $1 per month |
Minimum deposit to open | $5 |
First Internet Bank Tomorrow’s Tycoons
Finder Rating: 4.3 / 5 ★★★★★
APY | 0.80% |
---|---|
Fee | $0 |
Minimum deposit to open | $100 |
Apart from savings accounts, kids’ apps have been a huge hit for parents looking for accounts that help teach and encourage their kids to save. Some popular options include:
Greenlight Savings
APY | 1.00% |
---|---|
Fee | $4.99 per month |
Minimum deposit to open | $0 |
BusyKid
Finder Rating: 4.6 / 5 ★★★★★
Annual or monthly fee | $48 per year or $4 per month |
---|---|
ATM withdrawal | $1.50 |
GoHenry
Finder Rating: 4.3 / 5 ★★★★★
GoHenry helps kids focus on saving by automating savings from their allowance. If parents set up parent-paid rewards, kids can also get paid for learning about finances through GoHenry's interactive Money Missions games and quizzes. At the same time, parents can limit kids' spending by choosing how much they spend at certain stores.
Get an extended 2-month free trial of the GoHenry kids' debit card and app when you sign up with Finder's exclusive code: AFUSS171. Offer ends on April 6, 2023.
Annual or monthly fee | $4.99 per month |
---|---|
ATM withdrawal | $1.50 |
FamZoo
Finder Rating: 3.6 / 5 ★★★★★
Annual or monthly fee | $5.99 per month |
---|---|
Additional Card Fee | $0 $3 Additional Card Fee (after first 4 free cards) |
ATM withdrawal | $0 |
Till Financial
Finder Rating: 4.6 / 5 ★★★★★
Fee | Free |
---|---|
Minimum deposit to open | $0 |
Our banking experts research over 120 kids’ savings accounts to curate a list of the best accounts for you to choose the right one for your child. We look for accounts that have low to no monthly fees and don’t require much money to open. We also consider whether the account requires a membership or opening the account online or in person.
Accounts that cater to kids across the US also get high marks in our analysis as well as those with extra tools for setting goals, investing and more. Last, we love accounts that make financial learning fun for kids through avatars, games and a kid-friendly design.
When shopping around for the best savings account for your kid, look for these features:
Yes. Not all banks offer dedicated savings accounts for kids, but many banks still let you open a standard savings account as a joint or custodial account with your child. Doing so lets you take advantage of higher interest rates than many kids’ savings accounts offer.
However, if your kid is under the age of 18, you or another parent or guardian will need to be a joint owner of the account. As a joint owner of a savings account, you and your child will both have unrestricted access to the funds in the account.
Since minors can’t legally sign contracts, they won’t be able to open a savings account under their own name. This leaves seven options that require an adult:
Use the table to compare kids savings accounts and debit cards. If you spot multiple accounts, select the “Compare” box to explore them further.
Adults can set up custodial for or joint savings accounts with their child or grandchild, often finding a higher interest rate than with kid-specific savings accounts. To get started:
Children’s savings accounts are a great way to teach kids about the importance of saving and can help them work toward short- and long-term financial goals. While there are a number of ways you can make deposits, children’s savings accounts are not a way to avoid paying taxes. Tax rates and rules can differ between states, banks and accounts, so check with your institution to ensure you’re wholly informed.
The kiddie tax is designed to discourage parents from shifting investments to their children to avoid paying taxes. It applies to all children under the age of 18 or students under the age of 23 whose unearned income — including interest, investments and gifts — exceeds $2,100. The first $1,050 is tax-free, whereas the second $1,050 will be taxed at the child’s rate of just 10%. Any amount of unearned income above $2,100 will be taxed at the same rate as income in a trust.
Individuals can gift up to $15,000 per year — or $30,000 for married couples — without gift tax implications. For amounts above this limit, a gift tax return must be filed. However, every individual has a lifetime estate and gift tax exemption amount of $5.6 million — or $11.2 million for married couples. This means that even if you exceed the annual gift limit, you may not owe any taxes.
Because children generally fall into a lower tax bracket than their parents, opening a custodial account in your child’s name will reduce the percentage of your savings that goes to Uncle Sam.
Each bank sets its own rules and requirements when it comes to savings accounts for kids. This table breaks down the age limits, eligibility requirements and more for popular kids’ savings accounts, so you can know what to expect.
JFCU | Alliant | Northpointe | Capital One | |
---|---|---|---|---|
Age limit | Under 18 | Under 13 | Under 18 | Under 18 |
What happens to the account at the age limit? | Automatically converts to Student Rewards Checking Account | Option to open Teen Checking Account | Not stated on website | Not stated on website |
Signatory requirements | Parent, guardian or other adult with verified identity | Parent, guardian or other adult with verified identity | Parent, guardian or other adult with verified identity | Parent, guardian or other adult with verified identity |
Who can make transactions? | Not stated on website | Parents and children | Not stated on website | Parents, and children with signature from parent |
Special eligibility requirements | Must hold a JFCU membership and savings account with $5 minimum deposit | Must hold an Alliant membership | Not stated on website | Not stated on website |
All reputable savings accounts for kids are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000, so you’ll never have to worry about your child losing money. Kids’ savings accounts also have these benefits.
Keep these drawbacks in mind when deciding whether a kids’ savings account is right for you.
Read up on the best student savings accounts
Yes. If you’re a new parent, you can open a savings account for your child as soon as you receive their Social Security number. Depending on the financial institution, you may need to visit a branch with your child, or you might be able to do everything online. But generally, banks and credit unions follow the same steps.
To open a bank account for your baby, you’ll need to meet the following eligibility requirements.
Be prepared to provide the following details when opening your baby’s bank account.
The best savings account for kids teaches children how to set goals and manage their money, but it also comes with perks like no fees or minimum balances to help kids who are saving their allowance. While opening a kids’ savings account grants children the power to save, you can also consider other kids’ bank accounts to achieve financial goals and learning, such as a checking account or prepaid card. Review your kids’ bank account options to find the one or combination of accounts that serve you.
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