Best Savings Accounts For Kids and Teens in 2024

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The relationship you have with money is formed at an early age. Emotional reactions and learning curves are attached to how you teach your child to spend money. Talking about money with your children and helping them form saving habits now could help them develop a healthy relationship with managing money later.

This is where savings accounts, including joint accounts, child accounts, custodial accounts and more 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. 

6 Best Savings Accounts for Kids in 2024

If you open a savings account for your child they will benefit from low minimum deposits, zero fees, low to no account balance requirements and a decent annual percentage yield. Some banks and credit unions also offer educational tools specifically for children which is helpful when choosing which bank account for kids is best for your child’s needs. 

Banks with physical locations where children can interact with bankers and physically deposit money to open a bank account were given bonus points because children are more likely to have cash than money via direct deposit. The following list of best savings accounts for kids highlights the financial institutions most willing to be family-friendly and help jump-start a healthy relationship with money management.

1. Northpointe Bank Kid’s Savings: Kids and teens who have serious savings goals.
2. M&T Starter Savings Account: Children who will benefit from learning how to save with minimal emphasis on earnings.
3. PNC S is for Savings: Young children who will benefit from the Sesame Street educational resources.
4. Capital One Kids Savings Account: Kids who are interested in setting up online savings goals.
5. Alliant Credit Union Kids Savings: Kids 12 and under due to account age restrictions.
6. USAlliance Financial MyLife Savings for Kids: Best for smaller children looking for an above-average APY.

1. Northpointe Bank

The Kids Savings Account from Northpointe Bank offers a competitive APY. Plus, even though the APY drops for balances exceeding $1,000, the rates are still quite competitive.

Best For

Kids and teens who have serious savings goals.

Benefits

• High APY compared to other kids’ savings accounts
• No account maintenance or minimum balance fees
• Account can be set up in person or over the phone

Drawbacks

• Balances in excess of $1,000 earn a lower APY
• $10 fee if the account is closed within 120 days of the opening date

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2. M&T Bank Starter Savings Account

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 a savings account, which is great for teens who are earning a paycheck. Plus, the account has setup options that allow children to have full access.

Best For

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

Benefits

• Automatic savings feature
• No minimum balance requirement
• No fees for users under 18
• You must visit a branch to open the account

Drawbacks

• Low APY

3. 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.

Best For

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

Benefits

• Educational resource
• A wide availability of physical locations and ATMs
• No fees for users under 18

Drawbacks

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

4. 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.

Best For

Kids who are interested in setting up online savings goals.

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

Drawbacks

• Limited physical locations
• Lower APY than some other banks on the list

5. 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.

Best For

Kids 12 and under due to account age restrictions.

Benefits

• Good APY
• Joint management with parents
• No fees or minimums if you opt out of paper statements
• Alliant contributes first $5

Drawbacks

• Restricted to children age 12 and under
• Limited physical locations

6. USAlliance Financial MyLife Savings for Kids

Young savers will benefit from a competitive APY with no added maintenance fees or minimum requirements. Once your child turns 13, they can also add a checking account to access their money with a debit card. This is a great way to grow money management skills.

Best For

Smaller children looking for an above-average APY

Benefits

• Above average APY to help grow your child’s savings
• User-friendly convenience through both the mobile app and website
• Fun features, such as $10 in annual birthday bucks if your kid is 13 or younger

Drawbacks

• You can only earn the highest interest if a minimum of $500 deposited into the account.
• No linked ATM or debit card until after the age of 13
• Fewer educational tools than some competitors

Other Ways To Start Savings and Investments for Kids

Savings accounts are not the only options available for children. Here are some 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.

GOBankingRates’ guide to the Best CD Accounts explains the benefits and details of 2024’s best offerings.

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.

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

Why You Should Open a Savings Account for a Child

• Financial education: Opening a savings account for your child teaches them valuable lessons about money, such as saving for goals, understanding interest and budgeting.
• Responsibility: Managing their own savings account gives children a sense of responsibility and ownership over their finances, fostering independence.
• Long-term savings habits: Starting early with a savings account helps children develop healthy saving habits that can benefit them throughout their lives.
• Financial security: Teaching children to save money provides them with a financial safety net and prepares them to handle unexpected expenses or emergencies in the future.
• Goal setting: Savings accounts encourage children to set savings goals, whether it’s for a new toy, a college fund or a charitable donation, teaching them the importance of setting and achieving financial objectives.
• Parental guidance: Many kids’ savings accounts offer parental controls and monitoring tools, allowing parents to guide their children’s financial decisions and provide valuable guidance on money management.

Final Take

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.

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

Rates and fees are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 10, 2024.

*Savings vary depending on account usage and payment behavior. Capital One interest rates accurate as of Oct. 10, 2024. See website for all current rates.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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