On This Page
On This Page
Find out about the best savings accounts for kids in our guide below, which answers questions like:
Why we like it
Axos offers a teen checking account for those aged 13 to 17 that we love for being super light on the fees. Kids can even access their funds via ATMs, and transactions are limited to $100 per day to provide some additional boundaries and oversight for young spenders.
An overview
| APY | Minimum deposit | Monthly Maintenance fee |
|---|---|---|
| 0.10% | $0 | $0 |
Pros and cons
| Pros | Cons |
|---|---|
| ✅No monthly maintenance fees ✅No overdraft or NSF fees ✅Access via ATM with up to $12 of ATM fees reimbursed each month ✅App access for parental oversight |
❌Only earns 0.10% APY ❌Daily transaction limit could be inconvenient at times ❌Online-only bank, so no customer service access at local branches |
Why we like it
Capital One’s kids’ savings account currently offers the best APY of all the accounts on our list, with a savings rate of 2.5% APY. This account also doesn’t come with monthly fees or have a minimum balance requirement. This is a joint account, which means you can open it for a child of any age.
An overview
| APY | Minimum deposit | Monthly Maintenance fee |
|---|---|---|
| 2.5% | $0 | $0 |
Pros and cons
| Pros | Cons |
|---|---|
| ✅2.5% APY on any balance amount ✅You can link other Capital One bank accounts to easily fund this account ✅Excellent mobile app for managing accounts ✅Available for children of all ages |
❌Parent or legal guardian must be the other joint owner if the child is under age 12 ❌No ATM access, so you have to plan ahead for withdrawal |
Why we like it
Chase doesn’t offer a specific savings product for kids, but you can open a traditional Chase savings account for your child and link it to other products, including checking and debit cards designed for kids and teens. We like this option for families that want to teach kids financial management with processes that include a local bank branch.
An overview
| APY | Minimum deposit | Monthly Maintenance fee |
|---|---|---|
| 0.01%* | $0 | $0 or $5 |
*APY based on a Los Angeles zip code.
Pros and cons
| Pros | Cons |
|---|---|
| ✅Access to bank branches and ATMs for convenience ✅No minimum deposit required ✅You can link existing Chase accounts and create automatic transfers to help kids save allowance or other amounts |
❌APY is among the lowest on the market ❌May not be the best choice unless you want a local branch and Chase has one in your city |
Why we like it
Greenlight is a unique money-management tool designed for families that want to take a proactive approach to financial education for kids. While it doesn’t offer a savings account, per se, this app-based debit card product does provide an option to help kids save for specific wants or needs while also learning to budget and spend wisely.
An overview
| APY | Minimum deposit | Monthly Maintenance fee |
|---|---|---|
| 1% to 5% | $0 | $4.99 to $14.98 app subscription fee |
Pros and cons
| Pros | Cons |
|---|---|
| ✅Provides a framework for early financial education ✅Doesn’t require a minimum deposit ✅Makes it easy to set and work toward financial goals with parental oversight ✅Options for earning cash back on spending |
❌Subscription-based model means you’ll pay between $4.99 and $14.98 per month ❌Not an actual savings account, but there are options for earning 1% to 5% on savings ❌Takes more time and effort to set up and manage than a traditional savings account |
Bank accounts for kids tend to be custodial or joint accounts. This means that a legal adult opens the account for and in conjunction with the child, providing management and guidance regarding the account. These are different from student checking accounts designed for older teenagers and college students, who can open an account on their own.
Some reasons to open a savings account for a child can include:
Age limits vary by bank, but many offer these products for children up to age 17. When a child turns 18, they may need to upgrade their account or transfer funds into another type of account.
Some banks also have minimum age limits. For example, they might offer a children’s savings account for those aged six to 17. Review the requirements for a kids’ savings account with each bank you’re considering to find out the age limits.
A savings account for kids doesn’t allow kids to show up and open an account as minors — although there are a few options on the market for 17-year-olds. Instead, these accounts allow children to access banking experiences and potentially higher-than-average interest earnings as long as they have an adult co-signer, joint account holder or custodian.
The basic idea of these accounts is that an adult can set one up to help a child save money. Hopefully, the adult is a parent, a guardian or another caring loved one who wants to help a younger person build money management and savings skills for the future.
Some common goals for people opening savings accounts for kids include:
Banks use a variety of terms for kids’ savings accounts. Some of them mean slightly different things.
Youth savings accounts tend to mean a savings account that is opened and jointly owned by a minor child and at least one adult. The adult acts as the legal custodian of the account, signing paperwork and handling other matters the child is not legally able to while allowing the child an active role in decision-making so they can learn about saving.
Teen savings accounts are often accounts designed for older teens and young college students. Typically, these account holders are at least 17 years old and may be able to own the account on their own.
This is another term for an account that is set up by and managed by an adult for the benefit of a child. In many cases, the account is managed without the input of the child, as the adult intends the savings to transfer to the child when they are older.
Some savings accounts are designed specifically to help families save for college. These specialty accounts may come with some potential tax benefits, and it’s typically a good idea to consult a financial advisor or another expert when setting them up.
The best long-term savings account for a child is one that works for the family or adult helping the child save.
When reviewing options, consider factors such as:
You can open a child’s savings account in the same way as an adult savings account — by completing the application online or at a local branch.
Some things you will need to open such an account can include:
The best child savings account — one that earns decent interest without high fees — can be worth it.
In the short term, a child’s saving account helps kids learn about managing money while saving up for things they may want. In the long term, this type of account can help kids save for large expenses in early adulthood and establish financially healthy savings habits that will serve them throughout their lives.
Savings accounts are a great financial tool for people of all ages, but you might want to consider other types of savings accounts when preparing children to manage money well.
Checking accounts for kids provide access to debit cards and other features that aren’t always available with savings accounts. They don’t, however, tend to come with above-average APY — or any interest earnings at all, in many cases. You might opt for a child’s checking account vs a savings account if you want to help children learn to spend and budget well.
The best CDs often have higher APY than savings accounts, and they can be a stable short- or long-term savings option. This can be a good choice for a baby savings account, as you can time the CD to mature when the child is a certain age — for instance, around 16 or 17 when they might need to buy a car or around 18 when they might want to fund college tuition.
You can even find options for investment accounts and other specialty savings. These can be good opportunities to expand financial education for kids in a practical way.
The best bank for teens and children is the one that offers the account that works for them and their families. Review factors such as APY, customer service and account access, but only bank with FDIC-insured institutions.
You’ll need identification for yourself and the child, such as your driver’s license and their birth certificate.
Make savings goals based on your family’s and child’s wants and needs. For example, if your child wants a bike that’s $200, they might save $10 per week for 20 weeks to get it. You can also make a goal to have your child save 10% or 15% of their ‘income’, even if their income is from allowance and gifts.
Only when the interest income on a child’s savings account exceeds IRS thresholds for the year is the savings account interest taxed. According to the IRS, the threshold as of 2024 is $2,500.
Again, deciding how to save money will depend on your personal preferences. Choose an option that is convenient and realistic to support success.
Yes, savings accounts with FDIC-insured banks are very secure and safe.
Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.
With more than a dozen years of writing experience, Sarah has tackled niches that range from technical advances in fintech to personal budgeting challenges. She has covered topics such as insurance and the economics of private healthcare, small business management and accounting, and credit and savings. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful and relevant resources for readers.
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
