Best savings accounts for kids and teens of July 2024

Maddie Panzer

BLUEPRINT

Updated 5:30 a.m. UTC July 1, 2024

Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.

A kids savings account teaches your (not so) little ones how to save, and the importance of earning interest. The trick is to find an account that has few fees, a decent yield and allows an appropriate level of access based on your kiddo’s maturity.

Annual percentage yields (APYs) and account details are accurate as of June 6, 2024.

Best savings accounts for kids and teens

Boeing Employees’ Credit Union Early Saver Youth Savings Account.
Spectrum Credit Union & Chevron Credit Union MySavings Youth Account.
Alliant Credit Union Kids Savings Account.
Capital One Kids Savings Account.

USA TODAY Blueprint may earn a commission from this advertiser.

Learn More

On Alliant Credit Union's website

Best for high yields and low fees

Boeing Employees’ Credit Union Early Saver Youth Savings Account

BLUEPRINT RATING

What should you know

You won’t have to worry about any monthly fees or a minimum deposit with this kids’ savings account at Boeing Employees’ Credit Union (BECU). Children under 18 are eligible and, if both parents or guardians want access, you’re in luck. You and your spouse can have joint ownership with your child so that the oversight responsibility doesn’t fall on one person. The account earns a competitive 6.17% APY on the first $500, then 0.50% APY on greater balances. We think that nicely balances the goal of teaching your kid the value of saving, and interest, while also pushing you to put any funds in excess of $500 into a more mature account. You’ll have a free ATM card, so the kiddo can make deposits and withdraws, which, besides being good practice, can make it especially useful if they receive cash gifts or do odd jobs for cash money. Those 13 and older are allowed access to free online and mobile banking. Because BECU is part of the CO-OP Financial services, members have access to over 30,000 ATMs free of charge. Once your kid turns 18, the account automatically converts into a standard joint savings account. For you and your kid to join the credit union, you can become eligible for membership with a one-time donation of $1 to the BECU Foundation.

Pros and cons

Pros

No minimum deposit or monthly fee.
High interest rate on the first $500.
Free mobile and online banking for kids 13 and up.

Cons

May have to donate if you don’t reside in BECU counties.
Smaller amount of ATMs nationwide compared to other savings accounts.

Best for high yields

Spectrum Credit Union & Chevron Credit Union MySavings Youth Account

BLUEPRINT RATING

What should you know

Spectrum and Chevron merged in 2012 and, while they have different websites, they both offer the exact same youth savings account and have identical membership eligibility requirements. Because both credit unions are part of the CO-OP Shared Branch network, members can make transactions from 5,000 plus credit union branches nationwide. Whichever brand you pick, the age requirement for the MySavings Youth Account is high — 21 years and younger — so your child can retain the account and all of its benefits through college or their first professional years. An impressive 7.00% APY on balances up to $1,000, then 0.75% APY on greater balances, which beats out many ‘adult’ savings accounts, and the yield on larger balances is still greater than the national average yield on savings accounts. Those 13 and up can get their own ATM card, which gives access to around 85,000 ATMs, surcharge free. To become a member, you can donate to one of three nonprofit organizations, including the Financial Fitness Association, Contra Costa County Historical Society and the Navy League of the United States (NLUS). There is an option for primary and joint memberships as well as a membership for minors, which makes the minor the Primary Member and the parent or guardian a Joint Owner. Once you’re approved, you’ll need to open a Spectrum Credit Union Primary Share Savings account with a minimum deposit of $25 and then you can open a MySavings Youth Account with your kid.

Pros and cons

Pros

Available for anyone 21 and under.
ATM card for those 13 and older.
High yield of 7.00% APY on balances up to $1,000, then 0.75% APY on greater balances.

Cons

Membership may require a donation.
Cash and check withdrawals are limited to your available funds authorized by the credit union.

Best for ATM access

Alliant Credit Union Kids Savings Account

BLUEPRINT RATING

What should you know

This account is for children 12 and younger, with no minimum age requirement. (Those between 13 and 17 can qualify for the Alliant Teen accounts.) Your child can earn a 3.10% APY with an average daily balance of $100 or more and can watch their money grow. This is a good option if you don’t want to concern yourself with APY tiers. If they have specific savings goals, you can set up supplemental accounts for them, such one for college tuition or a brand new scooter. You can help your kiddo to check their balance on the app or with the account’s ATM card. While it does have more than 80,000 ATMs in-network, this credit union is online only. This means you won’t be able to walk into a branch with your child. If that’s an experience you want, look at our other picks. Membership is easy. To open the account, you, as the parent or guardian co-owner, need to first become a member. You can do this by joining a nonprofit for free — Alliant will cover the one-time $5 membership fee. Alliant will also cover the $5 opening deposit requirement for the kids’ account to get your child started.

Pros and cons

Pros

Alliant covers the membership donation and opening deposit fee.
High yield without tiers.
80,000 ATMS surcharge-free.

Cons

Monthly $1 fee for paper statements.
Can only earn interest on balances of $100 or more or more.
Digital banking only — no physical branches.

Best for mobile banking

Capital One Kids Savings Account

BLUEPRINT RATING

What should you know

If you want to easily keep track of your kids’ savings from on the go, this could be the account for you both. Capital One has a top-rated mobile app with almost a perfect score, 4.8 stars, in the Apple App Store and 4.6 in the Google Play Store. Although this account has a lower yield than our other accounts, there is no minimum balance requirement and no monthly fees attached. That means your kid will be less likely to get into trouble. You can link your account (whether it’s at Capital One or another bank) to your child’s so you can track their savings. You can also set up automatic deposits, which can serve as part of their allowance (if they do their chores, of course). As the ninth largest bank in the nation, Capital One has plenty of branches and around 70,000 fee-free ATMs. The abundance of ATMs allows members to access money from almost anywhere, including CVS and Target locations.

Pros and cons

Pros

Interest applies to any balance.
You can schedule recurring deposits with Automatic Savings Plans.
No monthly fees or minimum balance requirements.

Cons

Lower yield.
Separate accounts required for each of your kid’s independent savings goals.

Compare the best savings accounts for kids and teens

ACCOUNT	STAR RATING	APY	MINIMUM DEPOSIT
Boeing Employees’ Credit Union Early Saver Youth Savings Account	5	0.50% to 6.17%**	$0
Spectrum Credit Union & Chevron Credit Union MySavings Youth Account	4.2	0.75% to 7.00%***	$0****
Alliant Credit Union Kids Savings Account	4.1	3.10%	$5*****
Capital One Kids Savings Account	4.1	2.50%	$0

^{** BECU Early Saver Youth Savings Account offers 6.17% APY on the first $500, then 0.50% APY on greater balances.}

^{*** Spectrum Credit Union & Chevron Credit Union MySavings Youth Account offers 7.00% APY on balances up to $1,000, then 0.75% APY on greater balances.}

^{**** Spectrum Credit Union & Chevron Credit Union MySavings Youth Account requires no minimum payment, but if you are not a member of the unions yet, you will have to pay either a $25 or $50 minimum deposit.}

^{***** Alliant Credit Union Kids Savings Account requires a $5 minimum deposit, but will give you that $5 to open the account for your child.}

Methodology

We looked at more than 300 savings accounts from around 150 financial institutions. Some of the institutions we analyzed included Chase, TD Bank, Wells Fargo and USAA. We scored savings accounts following the methodology below. A score of 80 to 100 earned five stars; 60 to 79 earned four stars and so on.

Fees: 40%

The last thing you want while saving for your child’s future is for fees to get in the way. We put fees as the biggest factor for this reason.

We incorporated monthly fees (10%), NSF fees (10%), overdraft fees (10%) and third party ATM fees (10%).

Minimum deposit and balance requirement: 20%

Many kids don’t have a ton of money to deposit into a bank account. Deposits and transfers are typically made by adults and, as a parent, you likely don’t want to drop a lot of money just to open a bank account. Opening deposit requirements and minimum balance requirements were weighted at 10% each.

Annual percentage yield (APY): 20%

One way to help build your child’s financial future is to find savings accounts that earn interest. The higher the APY, the more interest you earn on your savings. Because of this, we included APY as an important factor.

Digital experience: 12%

Having a good digital experience, whether that be online or mobile banking, can be pivotal. Under digital experience, we considered rankings and reviews in the Apple App Store (3%) and Google Play Store (3%), plus whether the financial institution offered online bill pay (3%) and online banking access (3%).

Customer experience: 8%

Seeing how hundreds to thousands of other parents liked (or disliked) a kids’ savings account can help you make a decision. Better Business Bureau (2%) and Trustpilot (2%) ratings were factors in our methodology. Plus, we counted live chat availability (4%) in this category as well.

Why some banks didn’t make the cut

Some banks didn’t make the cut because of factors like high maintenance fees, low APYs and strict eligibility requirements. These factors all contribute to your kid’s ability to save up for their future.

You’ll notice that many of the largest banks in the nation didn’t make our list. As they’re often top-of-mind for Americans, they tend to not offer the best deals; whereas smaller financial institutions want to make a splash and gain attention.

Why a kids’ savings account is a good idea

A kid’s savings account can help your kid get comfortable with handling money, which is vital for financial success as an adult.

“Money management isn’t learned overnight, so starting kids early in understanding savings can be the difference between them becoming self-sufficient adults or not,” said Jacqueline Schadeck, an Atlanta-based certified financial planner (CFP).

A kid’s savings account can help your child keep track of money and learn how to set it aside for financial goals, such as saving money for college or purchasing a car.

Not only will this savings account help children and teens, but it can also help parents who want to oversee their child’s account and keep up with their child’s savings and financial aspirations.

Having a kid’s savings account allows individuals to reap the benefits of earning interest. It gives families a safe way to build a financial foundation for their children and teens.

Choosing the best savings account for your kid

Once you know what features to look for, it shouldn’t be difficult to find the savings account that works for you.

No fees or minimums

Children typically don’t have a large balance to start off their savings, so fees may be especially frustrating and high minimums may prevent them from opening an account in the first place.

“It’s important to consider savings accounts that offer competitive interest rates and do not have any minimums or hidden fees,” said Brandon R. Amaral, CFP and founder of Amaral Financial Planning.

High APY

Besides helping your kid to earn money, a high interest rate can be instrumental as an example in teaching your child how compound interest works; a dollar today is better than a dollar tomorrow.

“The earlier the better to discuss money to give them time to grasp this non-natural concept,” said Schadeck.

Access

Digital banking makes life easier, but you can set guardrails. And once they mature, you can let the kiddo take over.

“Parents with younger children should consider accounts with the ability to grow with their child,” said Sanya Mulhern, a CFP with RBC Wealth Management’s San Diego branch. “In other words, can you add a checking account later, or a debit card?”

Maybe you want to start your kid off with a savings account they can access by going into a branch and, as they grow, allow them greater access, such as helping them download the mobile app and learn how to use an ATM card.

How to open a kids’ savings account

You can apply for a kids’ savings account online or in person. To open an account, you first need to ask yourself what your kids are capable of in terms of managing money. Finding the right savings account for your child can depend on their age, the responsibilities that come with the account and what type of financial goals they may make for themselves.

Look for savings accounts with high yields and low fees. See if a bank offers benefits or special features with their kids’ savings account.

Once you choose the savings account, start the application process. Have the following ready:

Identification documents: To open an account you’ll need forms of identification for the child and guardian. Forms of identification for minors may include a Social Security card and birth certificate, while a parent or guardian will likely be required to show a driver’s license or passport (with photo).
Personal details: You’ll need to provide your date of birth, phone number and residential address.
Initial deposit: If there’s a required initial deposit, have that money prepared, otherwise have whatever amount you’d like to deposit on hand or ready to transfer.

Note that some financial institutions require that you have an in-person or virtual meeting as part of the application process in order to prevent fraud.

With the application complete, you should hear back quickly on whether the account is approved and open.

Frequently asked questions (FAQs)

There isn’t a minimum age requirement on many kids’ savings accounts. You can open one whenever you want and increase how much your child interacts with it as they age. You can start explaining how saving is important when they’re very young and build up to letting them manage their own ATM card when you feel your child is ready.

To open most savings accounts, you must be 18 and older. Kids’ savings accounts almost always require a parent or guardian over the age of 18 to be a joint owner.

Taxes on a child or teens savings account depends on how much interest is generated. If your kid’s account generates more than $2,300 a year, it may be taxable. You can include it in your own tax filing up until the interest earned is greater than $11,500, at which point you have to file a separate tax form in your child’s name.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Maddie Panzer

BLUEPRINT

Maddie Panzer is the Updates Editor on the USA TODAY Blueprint team. Prior to joining the team, she studied journalism at the University of Florida. During her studies, she worked as a reporter for the New York Post, WUFT News and News 4 Jacksonville. She was also editor-in-chief of her school’s magazine, Orange and Blue. Maddie holds a B.S. in Journalism.

Jenn Jones

BLUEPRINT

Jenn Jones is the deputy editor for banking at USA TODAY Blueprint. She brings years of writing and analytical skills to bear, as she was previously a senior writer at LendingTree, a finance manager at World Car dealerships and an editor at Standard & Poor’s Capital IQ. Her work has been featured on MSN, F&I Magazine and Automotive News. She holds a B.S. in commerce from the University of Virginia.

Best savings accounts for kids and teens of July 2024

Best savings accounts for kids and teens