Best savings accounts for kids

Best savings accounts for kids

Karen Bennett

Mon, August 31, 2026 at 8:46 PM GMT+3 8 min read

Key takeaways

• When selecting the best bank account for kids, look for no monthly fees or minimum balance requirements to maximize your child's savings.

• Prioritize parental controls and financial education tools that help kids build healthy money habits early.

• Consider age requirements and geographic and membership limitations that might restrict access to certain accounts.

• If maximizing interest is your main goal, a standard high-yield savings account opened in your child's name may out-earn a kids-specific account, though you'll give up some built-in educational features.

A savings account is a simple way to teach kids the value of money and the basics of managing finances. But not all kids' accounts are created equal — and just because it's a starter account, doesn't mean your child shouldn't get the best. Before opening one, it's worth comparing annual percentage yields (APYs), fees, minimum balance requirements and educational tools.

Bankrate's experts found five standout picks, each chosen for what it does particularly well — whether that's APY, accessibility or kid-friendly features.

Best savings accounts for kids

Each of these savings accounts offers a worthwhile place to start a child's banking journey. For any account, check for opening age restrictions, whether there are fees and what happens when the child reaches a certain age before opening a savings account for your child.

Best for a high yield: Alliant Kids Savings Account

Why we chose it: The Alliant Kids Savings Account earns a competitive yield for a children's savings account.

The Alliant Kids Savings Account requires an initial deposit of $5, which the credit union will cover for you. The account pays 3.01% APY, but it earns no interest if the daily balance falls below $100. No monthly fee is charged as long as you receive e-statements instead of paper statements.

The account offers a mobile banking app that will allow you and your child to digitally monitor the account's funds, as well as make deposits and review how much interest has been earned. Children 13 and older can apply for a Teen Checking Account with Alliant to continue their financial journey.

Best for kids of all ages: Capital One Kids Savings Account

Why we chose it: You don't have to wait until your child is a certain age to open this account. A parent or a legal guardian can open this account for a baby. If the child is 12 or older, the adult opening the account doesn't need to be their legal guardian.

In terms of costs, the Capital One Kids Savings Account charges no fee and has no account minimum. It also pays 2.50% APY on any balance.

In addition to earning some interest, the account offers a mobile app that allows children to check account balances. As an added feature, the dual-access account requires adult supervision to transfer funds out of the account.

Best for young children: PNC's S is for Savings

Why we chose it: PNC was chosen for its access to engaging learning tools for kids. It has a learning center where kids can find lessons from Sesame Street characters.

The S is for Savings account offered by PNC Bank is designed to help younger children learn about money and banking. The account's online financial education tools are robust and feature your child's favorite Sesame Street characters.

Children can access the account through the PNC Mobile Banking app. The goal of the app is to provide an interactive banking experience that teaches your child more about "saving, sharing and spending."

The account requires no minimum deposit to open online and charges a $5 monthly fee that can be waived if at least one of these three requirements is met:

• The account holder is under the age of 25.

• An average monthly balance of at least $300 is maintained.

• There's at least one automated transfer of $25 or more each statement period from a PNC checking account.

A downside: The APY offered is very low, at only 0.01% APY. With that in mind, the account is likely best for younger children who have a lot to learn about the basics of money.

Best for ATM access: Boeing Employees Credit Union (BECU) Early Saver Account

Why we chose it: Unlike many savings accounts, the Early Savings Account from Boeing Employees Credit Union comes with an ATM card. This could come in handy for demonstrating how to deposit money without having to visit a teller. Another perk of this account is the yield on a balance of up to $500 is very competitive.

The BECU Early Saver Account has no monthly fees and no minimum opening balance. As children save, they earn an extremely competitive 5.12% APY on the first $500, while amounts above that earn just 0.20% APY, which is comparable to rates offered by traditional bank savings accounts.

Though the credit union was founded for Boeing employees, BECU has since expanded to offer membership to anyone who lives or owns a business in Washington state, plus select counties in Oregon and Idaho. Membership is also open to those affiliated with certain organizations.

Best for nationwide access: USALLIANCE MyLife Savings for Kids

Why we chose it: The MyLife Savings for Kids account is available nationally — unlike accounts from various other credit unions that limit membership to a specific region or employer. USALLIANCE allows anyone to join through a free membership in a partner organization.

Perks of the MyLife savings account include:

• Balances earn 2.00% APY on the first $500 (with amounts above that earning 0.02% APY).

• USALLIANCE automatically deposits $10 into the account each year for the child's birthday.

• No minimum balance requirements or monthly fees.

Membership in USALLIANCE is open to employees of select companies, residents of certain communities in Connecticut, Massachusetts and New York. Members of select associations and partner organizations — such as the American Consumer Council — may also be eligible.

Keep in mind

Many accounts designed for kids advertise a high APY, but it only applies to a small slice of the balance — sometimes just the first $500. If your main goal is maximizing interest, a standard high-yield savings account is likely a better choice. These currently earn up to around 4% APY on all balances, and can be opened as a custodial or joint account in your child's name.

Why should my kid have a savings account?

A savings account is a useful tool to help children gain financial knowledge. By slowly building savings through childhood, kids can form the right money habits, learn about the importance of saving and understand the value of money. They can also learn about earning compound interest on their savings.

Maintaining a savings account can also help kids understand the advantages of keeping their money in the bank, where it's safe and earning interest, rather than storing their savings at home.

Bankrate's picks: Best high-yield savings accounts

How to choose a bank account for kids

There are a few key factors to consider when choosing a bank account for a child. The goal is to find a flexible, low-cost account that assists with improving financial literacy. Here are some features to look for:

• No monthly maintenance fees or minimum balance requirements. Choose an account that doesn't charge monthly fees, which can deplete savings over time. Picking an account without a balance requirement allows you and your child to manage money without the pressure of maintaining a specific amount.

• Convenient online access. Make sure the bank provides a user-friendly online and mobile banking experience. This is a great way to introduce children to digital banking.

• Competitive interest rates. Online banks and high-yield savings accounts typically offer the best rates, which can boost your child's savings. Keep in mind many regular high-yield savings accounts are available to children — and they offer higher APYs than you'll get from kids' accounts, but often without comprehensive parental controls.

• Parental controls and monitoring. Some accounts offer features that allow parents or guardians to monitor account activity, set spending limits and control ATM access.

Bankrate's picks: Best checking accounts

Next steps

FAQs about kids' savings accounts

• How do you open a kids' savings account?

  In most cases, you can apply for a kids' savings account online. You'll just need to provide some basic information about yourself and your child. If you're approved, you can make your first deposit and start using your account.

• Is a kids' savings account the best option?

  A savings account may not be the best option if you're looking to give your child the ability to make regular transactions. Savings accounts limit the amount of transfers out of the account. If you'd like your kid to have the ability to make purchases or regularly move money out of the account, consider a kids' checking account.

• Do you have to pay taxes on kids' savings accounts?

  If your child's unearned income (including investments and interest) is $2,700 or more, it may be subject to taxes. You may be able to include your child's taxes on your own instead of filing on their behalf, if certain requirements are met.