The 5 best savings accounts for kids and teens

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Parents play a crucial role in shaping their children's money behaviors, as these habits are often established at an early age.

Luckily, there are financial tools available to help parents teach their kids about money management. Kid-focused savings accounts offer a chance for youngsters to learn about money and build financial habits.

With so many savings accounts on the market, choosing the right one can take time and effort. We’ve compiled a list of some of the top savings accounts for kids to help you make the right choice.

Capital One Kids Savings Account

Capital One offers a high-yield savings account with no fees or minimum balance requirement, making it an excellent choice for kids who want to see their balance grow over time. It’s available to children under 18 and adults who co-sign onto it.

You can earn 2.50% on your money, and there’s no minimum deposit required to open or maintain the account.

Parents can schedule allowances, make deposits, link their accounts, and deposit checks in their child's name via the mobile app. Children can view their account balance, but an adult co-owner must sign in to transfer funds.

Your child can set up an automatic savings plan to move money to their savings account on a set schedule. They can also establish multiple accounts, letting them track multiple savings goals simultaneously.

Upon turning 18, the Kids Savings Account becomes an adult Capital One 360 Performance Savings account.

Alliant Credit Union Kids Savings Account

If you want to show your child the benefits of working with a credit union, Alliant is a solid choice.

Alliant is an online credit union, so anyone can open an account. To become a member, you need to either be a current or former employee at an Alliant partner business, be a related to (or a domestic partner of) a current or former employee of an Alliant partner business, live in work in a community near Alliant’s headquarters, or be a member of Foster Care to Success.

With this savings account, you can earn up to 3.10% on your money. Plus, you won’t have to worry about any monthly fees as long as you elect to receive digital statements. You will need to make a $5 initial deposit to open an account and maintain a balance of $100 to earn interest.

This joint bank account allows both parents and children to be owners, with parental approval required for any account activity. Parents can set up automatic deposits, while children can track their balance and make their deposits. Once your child turns 13, they can open a teen checking account with Alliant and start using a debit card.

PNC Bank S is for Savings® Account

PNC offers an interactive savings account that helps your child learn how to save and spend. You can start by working with your child to open a checking account with no minimum balance or monthly fee to worry about. You can then add a savings account, which also has no fee and only requires a $1 balance to earn interest.

What sets this account apart is its educational resources, including a Sesame Street money workshop and an online experience that allows kids to allocate their money into saving, sharing, and spending jars.

PNC makes it easy for your child to access their funds with 60,000 fee-free ATMs, and you’ll also get $20 in out-of-network ATM fee reimbursements per month. There’s no minimum initial deposit and a monthly service fee of $5, which can be waived for account holders under 18.

PenAir Federal Credit Union Level Up Savings Account

PenAir Federal Credit Union offers two dedicated accounts geared toward children. The Level Up Savings Account targets children from birth through 18 years old. There are no monthly fees, but you need to deposit at least $25 to open the account.

A major downside of the savings account is that it offers relatively little interest. However, the account comes with money management tools and financial education resources you can use to teach your child about money, which may make it appealing to some families.

Bethpage Federal Credit Union Student Savings Account

Bethpage Federal Credit Union offers a Student Savings Account for teenagers. The minimum deposit to open an account is just $5; you can earn 5% APY on balances up to $1,000.

The account is convenient for older kids because it has no overdraft fee and offers a $1,000 ATM withdrawal limit. This can help teens learn how to manage both online banking funds and cash.

Children under 18 must co-sign the account with an adult. The adult account holder can easily check the child’s account balance and deposit checks for them via the mobile app.

This credit union is open to anyone with a $5 minimum share account.

What to know before opening a savings account for your child

Before opening a savings account for your child, there are a few factors to consider. It's important to compare different banks or credit unions to find the best savings account option available.

Start by considering your goals for the account. Is this a place to store extra cash for your child, or do you want your kid to be involved? If it’s the latter, you may prioritize an account that offers things like a debit card or educational tools.

Look for accounts that offer competitive interest rates, low fees, and flexible terms. Consider whether the account can be easily managed online or through a mobile app, as this can make it more convenient for both you and your child.

Consider how long you plan to have the account open. How much do you plan to keep in the account? If you have more money to dedicate to your child’s savings, you can open an account with a higher minimum balance requirement.

How we rated the best savings accounts for kids 

To determine the best savings accounts for kids and teens, we carefully evaluated a wide range of factors, including interest rates, fees, minimum deposit and balance requirements, and product mix.

Our team analyzed numerous bank offers and selected the top contenders based on these key criteria. The options on this list represent the best value benefits available.

Here are some of the key factors we considered:

• Interest rate: The interest rate is the primary reason someone would choose a savings, CD, or money market account over another, so this is our most heavily weighted factor. 
• Fees: Low fees can help minimize the cost of managing your money and accessing essential financial services, allowing you to keep more of your hard-earned cash.
• Minimum deposit & balance requirements: High minimum deposits can be a barrier, and high balance requirements to avoid fees or earn the best rate limit the account's usefulness.
• Product mix: A diverse product mix allows customers to find the right financial solutions for their unique needs and goals. 
• Customer service: Reliable customer service is essential for a positive banking experience. 
• Digital experience: With more banking done online, the quality of an account's digital offerings is increasingly important.
• ATM & branch access: Access to ATMs and branches gives bank customers the flexibility to handle their banking needs in person when necessary while also providing easy access to cash when they need it.

The bottom line

Opening a savings account for your child can be a great way to set some money aside for them and start educating them about managing their own money. While you should always consider rates and fees, it’s worth looking into accounts that offer added educational tools.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.