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10 best savings accounts for kids for 2022

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.

10 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 bonuses

Greenlight Savings

Go to site
on Greenlight's secure site
Although Greenlight Savings is a debit card for kids and not an actual savings account, it has some nifty savings features. In addition to parent-paid interest, which lets you adjust the rate your kid earns on their savings goals, this account includes 1 to 2% savings bonuses, depending on your plan. These bonuses are similar to APYs in that they are paid monthly. The standard Greenlight plan and Greenlight + Invest plans each earn a 1% savings bonus per year, while the Greenlight Max plan earns 2%. So if your kid has $1,000 in their Greenlight Savings goals, they could earn $20.18 over 12 months with the Greenlight Max account versus $10.05 with the other Greenlight tiers. In either case, this is more than twice as much money as your kid would earn with Capital One, Pen Air or First Internet Bank during the same period.

Best overall savings account for kids

Capital One Kids Savings Account

Finder rating 4.7 / 5 ★★★★★

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.

Best for savings goals

Alliant Kids Savings Account

Finder rating 4.6 / 5 ★★★★★

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. But your kid has to be 12 years old or younger to qualify. If they're older, you can get a standard Alliant savings account, which comes with the same high APY.

Best for earning interest

Northpointe Bank Kid’s Savings

Finder rating 4.6 / 5 ★★★★★

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.

Best for savings rewards

Pen Air Savings

Pen Air 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 $0. That's $60 in free money on a $0 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.

Best for solid APY on any balance

Garden Savings FCU Kids Club Savings

Finder rating 4.6 / 5 ★★★★★

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.

Best for high APY on low balances

Spectrum Credit Union MySavings Youth

Finder rating 3.7 / 5 ★★★★★

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.

4 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 online savings

First Internet Bank Tomorrow’s Tycoons

Finder rating 4.3 / 5 ★★★★★

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.

Best for financial literacy

PNC 'S' Is For Savings

Finder rating 3.6 / 5 ★★★★★

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.

Best for low balances

BECU Early Saver Youth Account

Finder rating 4.7 / 5 ★★★★★

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.

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.

7 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 seven options that require an adult:

  • 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. Uniform Gift to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts let you set aside savings for a minor who won’t be able to touch the money until they reach adulthood.
  • Education savings accounts (ESAs). Education savings accounts allow you to start saving for your child’s K-12 or college education. These investment accounts are tax-free as long as you use funds on qualified education expenses.
  • 529 plans. These prepaid tuition plans and education savings plans, which are sponsored by states, state agencies and educational institutions, let you set aside funds for your kid’s higher education.
  • High-yield savings accounts. Open a high-yield savings account in your name to earn a better APY than kids’ savings accounts typically offer, but there may be tax implications to contend with.
  • Certificates of deposit (CDs). Some CDs earn better rates than savings accounts and can be gifted to a child, but your kid will have to wait until they reach adulthood before they can access the funds.

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 Age requirements Features
Greenlight
Finder Rating: 4.4 / 5: ★★★★★
Greenlight
$4.99 per month
Any age
  • 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. For each successful referral, you and your friend get a cash reward.
GoHenry
Finder Rating: 4.3 / 5: ★★★★★
GoHenry
$3.99 per month
6 to 18 years old
  • Free trial
  • Custom tasks
  • Spending limits
  • Financial literacy rewards
Teach your kids to save with a reloadable card you control, but you pay $3.99 a month.
Chase First Banking℠
Finder Rating: 4.3 / 5: ★★★★★
Chase First Banking℠
$0 per month
Any age
  • Real-time requests
  • Flexible parental controls
  • Supports chores and allowances
A debit card for teens and kids with a set of digital tools to help them learn good money habits in the Chase Mobile app. Requires parent to have or open a Chase checking account.
Copper
Finder Rating: 4.6 / 5: ★★★★★
Copper
$0 per month
13+
  • 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.
Jassby
Finder Rating: 4.2 / 5: ★★★★★
Jassby
$0 per month
7 to 17 years old
  • Parental controls
  • In-app mall
Jassby is a virtual debit card for kids, complete with chores and allowance tracking.
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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.
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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.

Tax bracket

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.

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

    Can I open a savings account for my baby?

    Yes. If you’re a new parent, you can open a savings account for your baby 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.

    1. Request an application to open a joint account.
    2. Add your child’s name, address and Social Security number as the primary account holder.
    3. Add your name, address, phone number, email address and Social Security number as the joint or secondary account holder.
    4. Fund the account with cash, a credit card or a different bank account.

    Eligibility

    To open a bank account for your baby, you’ll need to meet the following eligibility requirements.

    • At least 18 years old
    • US resident

    Required information

    Be prepared to provide the following details when opening your baby’s bank account.

    • Your and your baby’s name
    • Your and your baby’s Social Security numbers
    • Address
    • Contact information
    • Driver’s license or government-issued ID
    • Some banks may require your baby’s birth certificate

    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.

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