Best Savings Accounts for Children and Teens in 2025
Your first exposure to money occurs during your early years.
Teaching your child about financial management improves their ability to master new abilities and their emotional reactions. Having chatted with your children about finances and encouraging them to start saving early will help them build excellent money management habits in the future.
This is the time when savings accounts such as joint, child, and custodial accounts become relevant. Utilizing them is a great method to educate your child about basic money skills, familiarize them with banking, and establish positive money behaviors. It is additionally a successful method for instructing children on how to establish objectives. Your kids can begin to save money for their desired items and understand the importance of achieving their objectives early in life.
6 Best Savings Accounts for Children in 2024.
If you open a savings account for your child, they will benefit from cheap minimum deposits, no fees, low or no account balance requirements, and a reasonable annual percentage rate. Some banks and credit unions also provide educational resources for children, which can help you decide which bank account is appropriate for your child's needs.
Banks with physical locations where children may contact bankers and physically deposit money to open a bank account received bonus points because children are more likely to have cash than money through direct deposit. The following list of the top savings accounts for kids focuses on financial organizations that are most eager to be family-friendly and help children develop a healthy connection with money.
Northpointe Bank Kid's financial is for children and teenagers with significant financial aspirations.
M&T Starter Savings Account: For children who want to learn how to save without focusing too much on earnings.
PNC S is for Savings: Young children will benefit from Sesame Street's educational tools.
Capital One Kids Savings Account: For kids who want to set online savings goals.
Alliant Credit Union Kids Savings: Account age limits apply to children under the age of twelve.
USAlliance Financial MyLife Savings for Kids is ideal for younger children seeking an above-average APY.
1. North Pointe Bank
Northpointe Bank's Kid's Savings Account has a competitive annual percentage yield when compared to other banks. Furthermore, even though the APY lowers for holdings over $1,000, the rates remain extremely competitive.
Ideal for kids and teens with significant savings goals.
Benefits
High APY compared to comparable children's savings accounts.
There are no account maintenance or minimum balance fees.
Drawbacks
Balances over $1,000 earn a reduced APY.
There is a $10 fee if the account is closed within 120 days of its opening date.
2. M&T Bank Starter Savings Account.
The M&T Starter Savings Account allows account holders to use M&T's Easy Save function to automatically move money from an M&T checking to a savings account, which is ideal for teenagers who are earning a wage. Furthermore, the account enables configuration choices that grant youngsters complete access.
Ideal for children who want to learn about saving without focusing solely on wages.
Benefits
Automatic Savings Feature
There is no minimum balance required.
Drawbacks
No costs for users under 18.
Low APY
You must visit a branch to open the account.
3. PNC S stands for Savings.
PNC Bank offers the PNC S is for Savings account, which is specifically designed for youngsters. Its greatest distinguishing feature is an online interactive experience for children with Sesame Street characters. The account also allows youngsters to establish financial objectives.
Ideal for young children who can benefit from Sesame Street educational tools.
Benefits
Educational resource.
A broad range of physical locations and ATMs
Drawbacks
No costs for users under 18.
Low APY
Minimum deposit required. $5 fee waived for account holders over 18 with a monthly balance of $300 or greater.
4. Capital One Kids' Savings
Capital One Kids Savings is a simple, no-fee account that gives an annual percentage yield (APY) on all Capital One balances. It connects to parents' accounts and allows for easy parental management and oversight.
Ideal for kids looking to build up online savings goals.
Benefits
The APY applies to all balances.
An extensive network of ATMs
There are no fees or minimums.
The app connects to the parents' accounts and allows youngsters to create savings goals.
Drawbacks
Limited physical places.
Lower APY compared to other banks on the list
5. Alliant Credit Union Kids' Savings
The Alliant Credit Union Kids Savings account is open to children aged 12 and younger. Alliant Credit Union offers a simple, no-fee account with a high APY and parental controls.
Recommended for children aged 12 and under due to account limits.
Benefits
High annual percentage yield
Joint management with parents.
There are no costs or minimums if you choose not to get paper statements.
Alliant contributes the first $5.
Drawbacks
Restrictions apply to children aged 12 and younger, with limited physical locations.
6. US Alliance Financial MyLife Savings For Kids
Young savers will benefit from a competitive APY that includes no additional maintenance costs or minimal restrictions. Once your child turns 13, they can open a checking account and use a debit card to access their money. This is an excellent approach to developing money management skills through savings and a teen checking account.
Ideal for smaller children seeking an above-average APY.
Benefits
Above-average APY to boost your child's savings.
User-friendly ease via both the mobile app and the website
Fun features, such as $10 in annual birthday money if your child is 13 or under.
Drawbacks
You can only get the highest interest if you deposit at least $500 into your account.
Savings bonds provide an opportunity to earn income by lending money to the government. Bonds are offered at a fixed price, and the government repays you with interest. You can request the money back at any moment, but waiting until the bond matures yields the best results.
It's important to understand that getting your money back isn't straightforward.
Money Market Accounts
Money market accounts are a type of higher-interest account. Although these accounts have significant limitations, they typically include check-writing capabilities, which some users may find useful. The disadvantage is that money market accounts typically require hefty minimum deposits.
Tips to Encourage Your Children to Save:
Children can be encouraged to save if you demonstrate the advantages of waiting for interest to accrue and how saving money allows them to make larger purchases.
Help Kids Save By
Creating separate accounts for spending and saving.
Setting up savings goals—both modest, like for a toy, and huge, such as for college.
Showing them how their money rises.
Teaching kids about the financial system while they're old enough to grasp it.
FAQ
Why Open a Savings Account For Your Child?
Financial education: Opening a savings account for your child teaches them important money principles such as goal setting, interest calculation, and budgeting.
Responsibility: Managing their own savings account instills in children a sense of responsibility and control over their resources, encouraging independence.
Long-term savings habits: Starting a savings account at a young age helps youngsters develop healthy saving habits that will serve them well throughout their life.
Financial security: Teaching children how to save money gives them a financial safety net and prepares them to deal with unexpected bills or emergencies in the future.
Which is the best savings account for a child?
An interest-bearing account is perfect for teaching a child the value of saving money. Look for accounts that allow you, as a parent, to track your child's activity.
Can a 10-year-old have a savings account?
Minors can open savings accounts at numerous banks. However, a parent or joint account holder will be necessary.
Can I start a high-yield savings account for my children?
Most banks allow you to open a high-yield savings account on your child's behalf.
