Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

9 best savings accounts for kids for 2021

Set your little ones up for financial success with one of these best kids bank accounts.

The best savings accounts for kids have high APYs and the tools and resources you need to set your child up for financial success. We researched over 120 savings accounts for kids and compared interest rates, fees, deposit requirements and financial literacy tools to curate a list of the nine best kids bank accounts so you can find the best one for your kid.

What’s changed in 2021?
We reviewed our list and removed accounts that had strict membership eligibility requirements. We determined six accounts that were overall good accounts. We also added three alternatives. While these alternatives have a narrow audience, there are still good options if you meet their requirements or are looking for an account that offers more hands-on learning features for your kid.

9 best savings accounts for kids

Closer look at the best savings accounts for kids

Most children’s savings accounts can help your child start saving for the future. But some accounts are better than others. Here are our top nine picks:

Best for savings goals

Alliant Kids Savings Account

0.55%
APY
$1
Fees
$5
Min. opening deposit
Alliant Kids Savings Account account is best for savings goals because it lets you and your child create multiple goals that you can track via Alliant's app. The account also comes with an ATM card your kid can use once they get older. And if you don't satisfy any of the primary membership requirements, you can join the nonprofit Foster Care to Success (F2CS), and Alliant will pay the one-time membership fee on your behalf. Although there is a $1 monthly fee for this account, you can avoid it by opting for electronic statements rather than paper statements.
  • Individual savings goals. Alliant lets you and your kid create multiple saving goals you can track via the credit union's app.
  • Solid interest rate. This account earns 0.55% APY, which is more than 13x the national average.
  • Alliant pays the initial deposit. If you decide to open this account, the credit union will deposit $5 into the account.
  • Minimum balance to earn interest. Balances under $100 don't earn an APY.
  • Must have another Alliant account. You can't open this account for your kid unless you have an Alliant account yourself.
  • Only two branches. This credit union only has two branches, both of which are in Chicago.
Interest compounding Monthly
Minimum to earn interest $100
Monthly transaction limit
Fee per transaction over limit

Best for solid APY on any balance

Garden Savings FCU Kids Club Savings

0.5%
APY
None
Fees
$5
Min. opening deposit
Garden Savings FCU Kids Club Savings account is best for earning a solid APY on any balance because your kid will collect 0.5% APY no matter how much or how little they have in their account. Most other credit unions have tiered interest levels that drop to 0.35% or less once you have $1,000 in your account, but Garden Savings FCU lets your kid earn a strong APY regardless of their balance. Plus, the account has some fun financial literacy features your kid can take advantage of when they're older.
  • Any balance earns the APY. No matter how much or how little is in the account, your kid will earn 0.5% APY.
  • Easy for non-NJ residents to open accounts. This account is geared toward New Jersey residents, but anyone who joins the American Consumer Council for free will qualify for membership.
  • Financial literacy features. When your kid is old enough to read and understand the concept of money, they can access games and other resources regarding financial literacy.
  • Few branches. This credit union only has five branches, all of which are in northern New Jersey.
  • Can't open online. There's no online application, but you can open an account by calling the credit union and emailing images of your government-issued ID.
Interest compounding Daily

Best overall savings account for kids

Capital One Kids Savings Account

0.3%
APY
None
Fees
None
Min. opening deposit
Capital One Kids Savings Account is the overall best savings account for kids because it earns a decent APY on any balance, doesn't require a minimum initial deposit and has great accessibility options. This account earns a flat 0.3% APY. You can open the account online or at a Capital One branch, and the app has parental controls that let you monitor and restrict your child's access to money.
  • Any balance earns the APY. Your kid will earn 0.3% APY on any balance in the account.
  • b&gt
  • Can open online or at a branch. You have the option of opening this account in your web browser or at a local branch.
  • Parents are in control. Capital One gives parents the ability to monitor and manage their child's access to funds in this account.
  • APY is good but not great. Many other financial institutions offer a better interest rate, but Capital One edges out most other nationwide banks.
  • Relatively few branches. Capital One has about 500 branches across the US, while many other big banks have several thousand branches.
  • Adult account required. You can only open this account for your kid if you have a Capital One account.
Interest compounding Monthly
Minimum to earn interest $0
Monthly transaction limit 6
Fee per transaction over limit $10

Best for savings rewards

Pen Air Federal Credit Union Level Up Savings

0.4%
APY

Fees
$25
Min. opening deposit
Pen Air Federal Credit Union Level Up Savings account is best for savings reward because the credit union will give your kid $10 when you open the account, $20 when their balance reaches $250 and $30 when their balance hits $500. That's $60 in free money on a $500 balance, which equates to a 12% bonus. No other banks or credit unions offer similar rewards. This account also earns a respectable APY, and anyone can qualify for membership in the credit union by donating $1 to the Friends of the Navy-Marine Corps Relief Society.
  • Savings rewards. Get $10 for opening the account, $20 when your balance reaches $250 and $30 when your balance reaches $500.
  • Easy and free to join. If you don't meet Pen Air's membership criteria, you can join the Friends of the Navy-Marine Corps Relief Society for a one-time fee of $1, which grants you access.
  • Can open online. Unlike some of the other accounts on this list, you can open a Level UP Savings account online.
  • High balance required to earn the max APY. Your kid will need $25,000 in their account to earn 0.4% APY. Otherwise, they'll earn 0.25%.
  • Few branches. Pen Air only has branches in Alabama and Florida, but you can access your account online.
Interest compounding Daily
Minimum to earn interest $500
Monthly transaction limit
Fee per transaction over limit

Best for online savings

First Internet Bank Tomorrow’s Tycoons

0.25%
APY
None
Fees
$100
Min. opening deposit
First Internet Bank Tomorrow’s Tycoons account is the best online savings account because you can open and manage your kid's account entirely online. Also, any balance in this account will earn 0.25% APY, which isn't as high as other accounts on this list, but it's still higher than the national average.
  • All balances earn APY. You'll earn 0.25% no matter how much money is in the account.
  • Can open online. You can open and manage this account from the comfort of your home.
  • High opening deposit. You'll need at least $100 to open this account.
  • No branches. First Internet Bank exists entirely online, so there are no physical branches.
Interest compounding Daily

Best for earning interest

Northpointe Bank Kid’s Savings

Northpointe Bank Kid’s Savings logo
Up to 1.5%
APY
None
Fees
$10
Min. opening deposit
Northpointe Bank Kid’s Savings account is best for earning interest because it garners 1.5% APY on the first $0 in the account, 1.11%on any funds between $1,000.01 and $9,999.99 and 0.35% on amounts that exceed $10,000. Some credit unions, including Bethpage FCU and USAlliance FCU, offer interest rates of 2%, but those rates drop precipitously on balances that exceed $0. With Northpointe Bank, your kid will earn a competitive APY on the first $10,000 in the account, and even balances that exceed that amount will earn 0.35% which is nearly 9x the national average.
  • Competitive APYs. Northpointe Bank is the only institution we found that offers more than 1% APY on balances up to $10,000.
  • Any balance earns interest. Some banks require you to reach a minimum balance before you can earn interest, but Northpoint doesn't.
  • Nationwide bank. Northpointe may not be a household name, but the bank has a national presence.
  • APY balance requirements. The 1.5% APY only applies to the first $0 in the account. But your kid will still earn 1.11% on balances between $0 and $10,000, and they'll earn 0.35% on funds that exceed $10,000.
  • Can't open online. There's no online application to open this account, but you can call the bank and request an application, which you can submit via email with an image of your ID.
  • Only one branch. Northpointe has loan offices across 24 states, but it only has a single banking branch, which is in Grand Rapids, Michigan.
Interest compounding Daily

3 alternative accounts

These accounts for kids either have a high APY or a standout feature. But they didn’t make our overall best list due to their monthly fees, strict membership requirements or low-interest rates. Still, they might be good options for those who qualify to open the account or are looking for tools that teach kids how to start saving money.

Best for financial literacy

PNC 'S' Is For Savings

0.01%
APY
$5
Fees
$25
Min. opening deposit
PNC 'S' Is For Savings account is best for financial literacy because it helps young children grasp the fundamentals of finance with an interactive, online experience that features Sesame Street characters. When you sign up for this account, your kid will learn the basics of saving, sharing and spending, which will help them develop a strong foundation for their future finances.
  • Aimed at young minds. Many banks offer financial literacy features for kids, but this account is specifically geared toward very young children.
  • No cap on deposits. Most savings accounts only let you make six deposits per billing cycle, but there's no such limit with this account.
  • Set specific goals. This account lets you and your child create specific savings goals you can track over time.
  • Low APY. This account earns 0.01%, which is next to nothing.
  • Parents need to be present. Even when your kid is old enough to enter a PNC branch independently, you'll still need to be present if they want to withdraw from the account.
  • Limited branches. PNC only has branches in 26 states.
Interest compounding Daily
Minimum to earn interest $1
Monthly transaction limit
Fee per transaction over limit

Best for low balances

BECU Early Saver Youth Account

Up to 2.02%
APY
None
Fees
None
Min. opening deposit
BECU Early Saver Youth Account is best for low balances because it earns 2.02% on any amount under $500. It also comes with a free ATM card and doesn't require any minimum initial deposit. But your kid will only earn 0.02% on any amount that exceeds $500.
  • High APY on low balances. Earn 2.12% APY on the first $500 in the account.
  • Free ATM card. This account comes with a free ATM card your kid can use to withdraw funds from their account when they get a bit older.
  • No minimum deposit. You can open this account with a deposit of any size.
  • APY limits. You'll only earn 2.12% APY on the first $500 Any amount that exceeds $500 will earn just 0.02%.
  • Membership requirements. To join BECU, you must be a Boeing employee, or live or work in Washington State or a few select counties in Oregon and Idaho.
  • Limited branches. PNC only has branches in 26 states.
Interest compounding Quarterly
Minimum to earn interest $0
Monthly transaction limit
Fee per transaction over limit $20

Best for high APY on low balances

Spectrum Credit Union MySavings Youth

Spectrum Credit Union MySavings Youth logo
Up to 7%
APY
None
Fees
None
Min. opening deposit
Spectrum Credit Union MySavings Youth account is best for earning a high APY on low balances because the account earns an incredible 7% APY but only on the first $0 in your kid's account. Any amount over $1,000 earns 0.3% APY, which is still pretty good. However, you must qualify for membership with this credit union, and there's no free or affordable loophole like other credit unions on this list offer. You could join the Contra Costa County Historical Society or the Navy League of the United States, but those organizations require annual membership fees of $15 and $25, respectively.
  • High APY. No other bank account we found earns 7% APY.
  • No minimum initial deposit. You can open this account with a deposit of any amount.
  • Must qualify for membership. Must meet criteria. No free loophole unlike some other credit unions.
  • APY limitations. You'll only earn 7% APY on the first $0. Your kid will earn 0.3% on any amount above $1,000.
Interest compounding Daily
Minimum to earn interest $500
Monthly transaction limit
Fee per transaction over limit

5 ways to find the best savings account for my kid

When shopping around for the best savings account for your kid, look for these features:

  1. Interest rate. You may want to shop around for accounts with higher interest rates before making a decision. Some banks also offer promotional rates and other incentives, so it’s worth seeing what’s out there.
  2. Deposit methods. Check to see if your child has a school banking program in place, which would allow your child to make deposits while at school. If not, you can always open an account for your child and take them to the bank once a month to show them how to physically deposit their pocket money.
  3. Monthly fees. There may not be any account maintenance fees for a kids’ savings account, but you should pay attention to any monthly withdrawal limits or fees.
  4. Minimum opening deposit. Some kids’ savings accounts come with a minimum opening deposit — usually around $25 — so compare your options if you’re looking for an account that doesn’t have this requirement.
  5. Special educational programs. Some banks have programs that give children access to online educational portals, and some even provide rewards such as a $5 starter deposit and stationery to help children learn about saving and finances.

Can I open a regular savings account for my kid?

Yes. Not all banks offer dedicated savings accounts for kids, but most banks that don’t will still let you open a standard savings account for your child. However, if your kid is under the age of 18, you or another parent or guardian will generally 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.

Kids savings account alternatives

Since minors can’t legally sign contracts, they won’t be able to open a savings account under their own name. This leaves three options: a joint account, a prepaid card for kids or a custodial savings account. Here’s how they differ:

  • Joint savings accounts. You can open a regular savings account jointly with a minor. Some banks may prevent children under the age of 13 from making withdrawals without the co-owner’s signature, but others may give you equal access to the account.
  • Prepaid cards for kids. Also known as kids debit cards, these accounts come with a mobile app and prepaid card that let you assign and track chores, control your child’s spending, and give them a safe space to learn how to save, spend, give and invest.
  • Custodial savings accounts. Money in a custodial account belongs to the minor, but they can’t access it until they reach the age of majority — 18 in most states. An adult serves as the custodian and oversees the account until the child comes of age.

Compare debit cards and savings accounts for kids

Use the table to compare kids savings account and debit cards. If you spot multiple accounts, click the “Compare” box to explore them further.

Name Product Annual or monthly fee ATM withdrawal Features
Gohenry
Finder Rating: 4.3 / 5: ★★★★★
Gohenry
$3.99 per month
$1.50
  • Free trial
  • Custom tasks
  • Spending limits
Teach your kids to save with a reloadable card you control, but you pay $3.99 a month.
Greenlight
Finder Rating: 4.4 / 5: ★★★★★
Greenlight
$4.99 per month
$0
  • Parental controls
  • Real-time transfers
  • Parent-paid interest
Greenlight is the prepaid debit card for kids that parents manage from their phones with flexible parental controls.
BusyKid
Finder Rating: 4.8 / 5: ★★★★★
BusyKid
$1.67 per month ($19.99 annually) includes free card; $0.67 per month ($7.99 annually) for additional cards
  • Low fee
  • Investing
  • Parent-paid interest
  • Donation options
The BusyKid Visa® Prepaid Spend Card gives your kids the freedom to spend anywhere Visa® is accepted, and parents see every transaction made.
Jassby
Finder Rating: 4.2 / 5: ★★★★★
Jassby
$0 per month
$0
  • Parental controls
  • In-app mall
Jassby is a virtual debit card for kids, complete with chores and allowance tracking.
Copper
Finder Rating: 4 / 5: ★★★★★
Copper
$0 per month
$0
  • Financial quizzes
  • Automated savings
  • Instant transfers
Copper is a digital checking account that teaches your teen healthy money habits through interactive quizzes and an intuitive mobile app.
FamZoo
Finder Rating: 4 / 5: ★★★★★
FamZoo
$5.99 per month
$0
  • Parent-paid interest
  • No foreign fees
  • Real-time cash requests
Teach your children good money habits with this comprehensive prepaid card and account.
Greenlight Max
Greenlight Max
$9.98 per month
$0
  • Investing
  • Priority customer service
  • Identity, cell phone and purchase protection
Greenlight Max is a premium prepaid kids debit card, featuring investing options and advanced card security.
Revolut Junior
Revolut Junior
$0 per month
  • Built-in safety
  • Parental controls
  • Parents-paid bonuses
loading

Compare up to 4 providers

Name Product Annual percentage yield (APY) Fee Minimum deposit to open
Alliant Kids Savings Account
Finder Rating: 4.6 / 5: ★★★★★
Alliant Kids Savings Account
0.55%
$1 per month
(can be waived)
$5
This Kids Savings Account has no maintenance fees with e-statements and a high APY with a minimum daily balance of $100.
Capital One Kids Savings Account
Finder Rating: 4.7 / 5: ★★★★★
Capital One Kids Savings Account
0.30%
$0
$0
Kids Savings Accounts are fee-free and don’t require a minimum balance.
loading

Compare up to 4 providers

Plan out your goals with our savings calculator

How does a savings account work for my child or grandchild?

Kids’ savings accounts usually have higher interest rates than adult savings accounts and savings bonds, but they may have more withdrawal restrictions depending on the type of account. Age restrictions also apply, and to be eligible, you usually need to be under the age of 18.

Making deposits into children’s savings accounts

The type of savings account you open can affect the way deposits are made. Depending on the purpose of the savings account, there are a few options you may want to explore:

  • Joint accounts. Joint accounts operate just like any standard savings account. Either owner will be able to make deposits into the account, and either party will be able to withdraw, although there may be restrictions depending on the age of the minor.
  • Uniform Transfers to Minors Act (UTMA) accounts. A UTMA account is a type of custodial savings account that is owned by the minor but managed by the custodian. This allows the custodian to make irrevocable deposits of nearly any type of asset into the account.
  • Uniform Gift to Minors Act (UGMA) accounts. A UGMA account is another type of custodial account that is very similar to a UTMA account but only allows custodians to make deposits in the form of bank deposits, stocks, bonds, mutual funds, other securities and insurance policies.

Tax implications of children’s savings accounts

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.

Kiddie tax

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.

Gift tax

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.

Requirements for popular kids’ savings accounts

Each bank sets their 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.

JFCUAlliantNorthpointeCapital One
Age limitUnder 18Under 13Under 18Under 18
What happens to the account at the age limit?Automatically converts to Student Rewards Checking AccountOption to open Teen Checking AccountNot stated on websiteNot stated on website
Signatory requirementsParent, guardian or other adult with verified identityParent, guardian or other adult with verified identityParent, guardian or other adult with verified identityParent, guardian or other adult with verified identity
Who can make transactions?Not stated on websiteParents and childrenNot stated on websiteParents, and children with signature from parent
Special eligibility requirementsMust hold a JFCU membership and savings account with $5 minimum depositMust hold an Alliant membershipNot stated on websiteNot stated on website

4 benefits of kids’ savings accounts

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.

  • Sets kids up for financial success. Studies show that opening a savings account for your child can lead to financial success later in life. Children with savings accounts are also more likely to invest in stocks as adults.
  • Interest bearing. By making small deposits each month, a child’s savings account could earn an appreciable amount of interest and, depending on the bank, they may qualify better rates compared to accounts for adults.
  • Usually no fees. The best savings accounts for kids are typically free to open and maintain, but some fees may still apply. Read the fine print and watch out for minimum balance requirements, monthly statement fees and other charges.
  • Low age requirements. Unlike checking accounts for kids, which typically require children to be at least 13 years old, savings accounts are open to all ages. You can even open a savings account for your baby as soon as you receive their Social Security number, giving you more time to take advantage of compound interest.

5 things to watch out for

Keep these drawbacks in mind when deciding whether a kids’ savings account is right for you.

  • The taxes could be quite high. Children’s savings accounts are still subject to taxes, especially if the amount exceeds the kiddie tax threshold.
  • Limited ATM access. Although some savings accounts for kids, such as Regions Savings for Minors, come with ATM cards, most do not.
  • Account transfer. Some banks will automatically convert the account to a student or teen checking account, while others may require you to transfer the funds to a new account yourself.
  • Transaction access. Some accounts allow your kids to deposit or withdraw funds of their own volition, while others require a parent’s signature. Look into who’s required to legally sign their name in order to access funds.
  • Accounts are exclusively for kids. Parents shouldn’t try to use children’s savings accounts to avoid taxes. The IRS has very strict rules governing the funds that are being held in a child’s savings account.

    Read up on the best student savings accounts

    Bottom line

    The best savings account for kids teaches children how to set goals and manage their money, but it doesn’t charge you huge fees to do it. As always, compare your options until you find an account that’s right for you kid.

    More guides on Finder

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site