The relationship we have with money is formed at an early age. Children as young as five have developed emotional reactions to spending money, according to a study by the University of Michigan. Talking about money with your children and helping them form saving habits now could help them develop a healthy relationship with money.

                By                    Carly Marie
  • Best Kids’ Savings Accounts
  • Other Kids’ Savings Options
  • Teaching Kids To Save

This is where savings accounts come in. They can be a great way to share with your child some of the basics of the financial system, get them comfortable with banks and help them develop healthy spending and saving habits. It’s also a good tool to teach them about setting goals. Your children can start saving up money for the things they want to buy and learn early about how rewarding it is to reach those goals. 

The following list of best savings accounts for kids highlights the financial institutions most willing to be family-friendly.

More From Your Money: Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today.

Best Savings Accounts for Kids in 2022

The savings accounts on this list all have low minimum deposits, zero fees and a decent annual percentage yield. Some of them also have educational tools specifically for children. Banks with physical locations where children can go to interact with bankers and physically deposit money were given bonus points because children are more likely to have cash than money via direct deposit.

1. American Express High Yield Savings

The American Express® High Yield Savings account can work well for anyone, and it’s also available to children. The account can connect up to three accounts from any bank, so family members can easily deposit cash into the child’s account.

Benefits

  • No fees
  • High annual percentage yield
  • Easy online access
  • Wide network of ATMs
  • Ability to connect accounts

Drawbacks

  • No physical branches

APY

Best For

  • Families who want to conveniently add to their child’s savings account

2. Garden Savings Federal Credit Union

The Kids Club Savings account is specifically for members 18 and under and offered through Garden Savings Federal Credit Union. Its most unique feature is access to games and educational resources that are relevant for a variety of ages — from children to teens to young adults. The account also pays interest on the entire balance.

  • Higher-than-average APY

  • No fees

  • Low minimum deposit

  • Membership required

  • Kids who want to start a savings account with little money

3. Northpointe Bank

The Kid’s Savings Account from Northpointe Bank offers a competitive APY compared to banks. Plus, even though the APY drops for balances exceeding $1,000, the rates are still quite competitive.

  • High APY compared to other kids’ savings accounts

  • No account maintenance or minimum balance fees

  • Balances in excess of $1,000 earn a lower APY

  • Account must be opened by phone or in person

  • $10 fee if account is closed within 120 days of opening date

  • Kids and teens who have serious savings goals

4. First Internet Bank

The Tomorrow’s Tycoon account from First Internet Bank is what it refers to as a digital piggy bank for kids under 18. At 18, the account converts to a Free Savings account. But beware, the minimum opening deposit of $100 is steep compared to what some other banks require.

  • Converts to free savings account when account holder turns 18

  • No fees

  • Online-only bank

  • High minimum deposit required

  • APY

  • Kids who have an opening deposit of at least $100

5. Justice Federal Credit Union

The Young Savers account at Justice Federal Credit Union has a low opening deposit and will help your child learn the basics about earning through dividends. The best part is that kids don’t have to have a lot of money to get the account started.

  • Educational resources

  • No fees for users under 18

  • Low APY

  • Minimum deposit required

  • –

  • Children who need a basic savings account with a low opening deposit

6. M&T Bank

The M&T Starter Savings Account offers account holders the option of using M&T’s Easy Save feature to automatically transfer money from an M&T checking to savings account, which is great for teens who are earning a paycheck. Plus, the account allows for setup options that allow children to have full access.

  • Automatic savings feature

  • No minimum balance requirement

  • No fees for users under 18

  • Low APY

  • You must visit a branch to open the account

  • Children who will benefit from learning how to save with minimal emphasis on earnings

7. PNC S is for Savings

The PNC S is for Savings account is specifically for children and offered through PNC Bank. Its most unique feature is an online interactive experience for children featuring Sesame Street characters. The account also allows children to set savings goals.

  • Educational resources

  • Wide availability of physical locations and ATMs

  • No fees for users under 18

  • Low APY

  • Minimum deposit required

  • $5 fee if account holder is over 18 — waivable with a monthly balance of $300 or more

  • Young children who will benefit from the Sesame Street educational resources

8. Bank of America Advantage Savings Account

The Bank of America Advantage Savings Account is easy to manage if the parent is already a customer, plus Bank of America has a high number of brick-and-mortar locations available nationwide.

  • No minimum balances

  • Fees waived for students

  • Locations nationwide

  • No online educational tools to help your child learn about finances

  • Minimum deposit required

  • Kids who have parents who are Bank of America account holders

9. BECU Early Savers Account

The BECU Early Savers Account offers children an especially high APY on the first $500. This account is a great way for kids to see the power of compound interest right away.

  • No fees

  • High APY

  • No minimum deposit

  • Physical branches limited to Washington state

  • Parent must have an account in order to open a minor savings account

  • No online application

  • APY drops on balances of $500 or more

  • on the first $500

  • Kids who have parents who are BECU account holders

10. Spectrum Credit Union MySavings

The Spectrum Credit Union MySavings account is another great way to get young people excited about earning interest. Spectrum’s bank account has an exceptionally high APY on balances up to $1,000. The account is available to children up to the age of 21, which gives your kid an extra few years before they have to think about opening a different kind of account.

  • No fees or minimums

  • High APY up to $1,000

  • Online accounts for customers who don’t live near a physical location

  • Physical locations limited to California, Texas, Virginia, Utah, Louisiana and Mississippi

  • on balances up to $1,000

  • Kids who live in California, Texas, Virginia, Utah, Louisiana or Mississippi

11. Capital One Kids Savings

A simple, no-fees account, Capital One Kids Savings offers an APY that applies to all balances with Capital One. It connects to parents’ accounts and offers a certain amount of easy parental control and oversight.

Benefits 

  • APY applies to all balances

  • Wide network of ATMs

  • No fees or minimums

  • App connects to parents’ accounts and allows children to set up savings goals

  • Limited physical locations

  • Lower APY than some other banks on the list

  • Kids who are interested in setting up online savings goals

12. Alliant Credit Union Kids Savings

The Alliant Credit Union Kids Savings account is available for children 12 and under. Alliant Credit Union provides an easy, no-fee account with a high APY and parental control.

  • Good APY

  • Joint management with parents

  • No fees or minimums if you opt out of paper statements

  • Alliant contributes first $5

  • Restricted to children age 12 and under

  • Limited physical locations

  • Kids 12 and under due to account age restrictions

13. Wells Fargo Way2Save

The easy, no-fees Wells Fargo Way2Save account offers a high number of branch locations and a variety of ways to deposit money. This account happens to be available to anyone of any age, but it’s especially great for children.

  • No fees for those under 25

  • Many physical locations

  • Low APY

  • Account incurs fees once the child turns 25 — waivable with daily balance of $300 or more

  • Minimum deposit required

  • Kids who like to make savings deposits in person

14. Ally Bank Savings Account

The savings account from the online bank Ally offers a high APY and highly regarded 24/7 customer service. It’s easy to open other kinds of accounts and services with Ally Bank once you’ve opened a savings account.

  • High APY

  • No fees or minimums

  • No physical locations

  • Kids who value a high APY over being able to make deposits at a branch location

15. Live Oak High-Yield Online Savings

Live Oak High-Yield Online Savings is a great option with the one of the highest regular APYs of any bank on this list. It’s an online bank, so it’s available nationwide.

  • High regular APY applies to all balances

  • No age limit

  • Only one physical branch location

  • Kids who don’t mind doing all their banking online

Other Ways To Start Savings and Investments for Kids

Savings accounts are not the only options available for children. Here are some of the other ways to start savings and investments for kids.

CDs

Certificate of deposit accounts are FDIC-insured deposit accounts that typically earn higher interest rates than savings accounts. The downside of these accounts is that there is a fixed date of withdrawal, and until that date, you usually can’t access the funds without paying a penalty.

Savings Bonds

Savings bonds are a way to earn interest by loaning money to the government. Bonds are sold at a fixed value, and the government pays you back with interest. You can ask for the money back at various times, but you get the most out of it if you wait until the bond fully matures.

It’s important to note that getting the money back is not exactly an instantaneous process.

Money Market Accounts

In a nutshell, money market accounts are another type of high-interest account. Although these accounts have certain restrictions, they often have check-writing features that some people might find useful. The downside is that money market accounts often require high minimum deposits.

Tips To Get Your Kids To Save

Kids can be motivated to save if you show them how they can benefit from waiting for interest to build and they can see how saving money helps them make bigger purchases.

Check out this infographic for some ideas on getting your kids to save:

Help Kids Save By

  • Setting up different accounts for spending and saving
  • Setting up savings goals — both small ones, like for a toy, and big ones, like for college
  • Showing them how their money grows
  • Teaching them about the financial system once they’re old enough to understand

Takeaway

Saving accounts are a great tool for introducing children to finances. With many options available, you can choose the account with the features that best suit your priorities, such as physical locations or high APY. The most important thing is to look for an account with no fees and low minimums to avoid your children getting charged for having a low balance.

Daria Uhlig and Cynthia Bowman contributed to the reporting for this article.

  • Which savings account is best for a child?

  • An account that earns interest so a child can see the benefits of setting money aside is ideal. Look for accounts that allow you, as the parent, to monitor your kid’s activity.

  • Is it a good idea to open a savings account for a child?

  • Opening a savings account is a great idea to teach the child about saving money and how banks work. Be sure to choose a bank that offers no-fee accounts for kids that pay interest.

  • Can a 10-year-old have a savings account?

  • Minors can have a savings account at many banks. However, a parent and joint account holder will be required.

  • Can I open a high-yield savings account for my child?

  • Most banks offering high-yield savings accounts will allow you to open one on behalf of your child.

  • An account that earns interest so a child can see the benefits of setting money aside is ideal. Look for accounts that allow you, as the parent, to monitor your kid’s activity.

  • Opening a savings account is a great idea to teach the child about saving money and how banks work. Be sure to choose a bank that offers no-fee accounts for kids that pay interest.

  • Minors can have a savings account at many banks. However, a parent and joint account holder will be required.

  • Most banks offering high-yield savings accounts will allow you to open one on behalf of your child.

Rates and fees are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Aug. 18, 2022.

  • University of Michigan.
  • “Spendthrift or tightwad? Children form attitudes about money at young age.”