Best Savings Accounts For Kids And Teens Of September 2024 (2024)

We’ve compared 73 savings accounts at 53 nationally available banks and credit unions to find some of the best savings accounts for kids. Here’s why we picked each account—including pros and cons—and where to find links to individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of August 30, 2024.

A kids savings account is designed specifically to help children learn how to save and manage money. It allows parents or guardians to open an account in their child’s name and deposit funds into the account. The bank may provide the option for a linked teen checking account and debit card, depending on your child’s age.

Is It Safe To Put Money in a Bank Account For Kids?

Yes, it’s safe to put money in a bank account for kids. All of the major banks take security and privacy seriously, so you can be sure your child’s money is secure. As an added layer of protection, most banks offer FDIC insurance, which guarantees deposits up to $250,000 per depositor per ownership category.

Financial institutions offer numerous types of bank accounts geared toward kids and teens. Some options you may come across include:

• Savings accounts. These accounts often earn interest and work like traditional savings accounts but may include special features or educational tools geared toward kids and teens.
• Checking accounts. Checking accounts for kids and teens usually come with a debit card but may have stricter spending limits or allow parents to set up controls.
• Student accounts. Some student accounts are specifically designed for high school or college-aged students and offer discounts and fee waivers.
• Certificates of deposit. Some banks have CDs available for kids and teens to open. They work exactly like traditional CDs with a fixed interest rate and CD term for guaranteed savings.
• Prepaid debit cards. Prepaid debit cards allow kids to make purchases using preloaded funds deposited by a parent or guardian.

There are also different types of savings accounts for kids. Some institutions may offer one or more of the following types of savings accounts.

Traditional savings account. A traditional savings account may earn interest, but it’s typically lower than what’s offered by high-yield savings accounts.

High-yield savings account. These accounts have above-average interest rates and are typically offered by online banks or credit unions.

Custodial accounts. Custodial accounts are owned by an eligible custodian on behalf of a minor, and withdrawals must benefit the minor. Banks set guidelines on when a minor can access funds or take ownership of custodial accounts based on state regulations.

Joint accounts. Joint accounts are managed by parents and can offer limited access and transactions for minors.

There are many benefits to opening a savings account for your kid or teenager. For one, a kids’ savings account can help teach your children about money management. When kids have their own bank accounts, they are more likely to develop good financial habits, such as saving regularly and avoiding impulse purchases.

Another benefit of a kids’ savings account is that it can provide a place to save for future goals. For example, your child can save for their education, a first car or even that new video game console they’ve been eyeing. By opening a kids’ savings account, you’re helping your children develop a sense of independence and responsibility early on.

You can open a kids’ savings account at any time, whether your child is a newborn, a teenager or anywhere in between. Research shows that kids are able to understand the concept of saving money as early as age five. So the earlier they can see the importance of saving money in action, the better off they’ll be in the long run.

With several kids’ savings accounts on the market, the best options aren’t always easy to spot. Here are some factors to consider when shopping for a savings account for your child.

• Fees. Regardless of the account type, keeping bank fees to a minimum is always a plus. Look for a kids’ savings account without a monthly maintenance fee. If the account comes with a banking card, make sure it offers fee-free ATM access.
• APY. Since savings accounts pay interest, look for one that offers competitive rates.
• Minimum requirements. Kids just starting their banking journey may not have the funds necessary to meet some banks’ minimum requirements. Look for a savings account with low or no minimum balance requirements.
• Educational tools. Opening a bank account with your child should be a learning experience for your young one. Many banks offer digital tools and resources that can further a child’s financial literacy.
• Parent-friendly features. Kids’ bank accounts are custodial accounts, which means they are managed by the parent or guardian associated with an account. Consider banks that offer account features such as mobile access and parental controls.

Most importantly, consider your and your child’s goals when opening a savings account. If your goal is to grow your kid’s savings, choose an account with a high interest rate. Today’s kids have grown up in a digital world, so having access to their money online or through a mobile app is a must.

Opening a savings account for a teenager isn’t much different from opening an account for a child:

1. Choose an account. Some banks offer accounts specifically for teens or students, while others lump all minors together under one account.
2. Check bank policies. Some financial institutions require an adult to have a separate account before opening a youth account. For children under 18, the law requires an adult to open a joint account and become the primary account holder. When the teen turns 18, they will have the option of taking over the account and managing it themselves.
3. Apply for an account. You can typically open a teen savings account online through the bank or credit union’s website, but in certain cases, you may be required to visit a local branch in person.
4. Fund your account. If approved, you can fund your account by linking an external bank account.

Many banks and credit unions, including some on the list above, offer high-yield savings accounts for kids. High-yield savings accounts operate similarly to standard savings accounts but earn higher APYs. You can usually find high-yield savings accounts at online banks. They often feature benefits like no or low monthly service fees and automatic savings tools.

Kids’ savings accounts aren’t the only accounts available for children. Here are some other options to consider.

Checking Accounts

Checking accounts are bank accounts designed for everyday spending that come with debit cards and ATM access. Checking accounts may come with a checkbook or check-writing privileges. Some banks offer general checking accounts for minors. For older children, some banks offer teen checking accounts or student checking accounts.

Other Savings Accounts

Traditional savings accounts meet basic banking needs, but other savings accounts may offer more suitable features depending on your needs. Student savings accounts may be better suited for teens and young adults who are students. You can also find high-yield savings accounts that earn more competitive interest rates than traditional accounts.

Chores Apps and Debit Cards

Opening a savings account is not the only way to teach your kids about money. You can start at home. Several easy-to-use mobile apps exist to help you and your children manage household chores and allowances. Some are free to use, while others require a small monthly fee.

Mobile banking apps and prepaid debit cards can also give your child access to everyday spending. Some of our picks for the best debit cards for teens include Greenlight, Current and GoHenry.

To create this list, Forbes Advisor analyzed 73 savings accounts at 53 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on dozens of data points, including fees, accessibility, customer experience, digital experience, minimums and APY.

We assigned the following weights to each category:

• Fees: 50%
• Branch and ATM access: 15%
• Customer experience: 10%
• Digital experience: 10%
• Minimums: 10%
• APY: 5%

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.

Banking reviewer and writer Ben Gran contributed to this article.

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