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What are Kids Savings Accounts

Triston Martin

Jan 09, 2024

Banks and credit unions allow only customers under 21 to open kids saving accounts. Sometimes, the maximum age is 12 or1 8, though. The best kid saving accounts offer higher interest rates compared to adult accounts to encourage teen savers. Nevertheless, the balances to which such higher interest rates are applied are often limited.

A kid under 18 usually requires joint ownership of kid savings account with an adult, generally their parent, guardian, or grandparent. Therefore, the adult account holder gets complete access to and transactional control over the account, although kids usually have some restrictions on the transactions they can execute.

Best Savings Accounts For Kids

Numerous banks and credit unions offer specialized savings accounts for kids that allow your younger kids to go up from a piggy bank in their room and begin to learn how to save money and manage a bank account. If you want to help your children to build a balance or your child requires an account to save their money from a part-time job or an allowance, a kid's savings account helps your kid to earn some interest while learning how to manage a bank and developing the habit of saving money.

To select the best kid savings accounts, consider any minimum balance and fee restrictions, interest rates, how you and your children can access the money, and how the account may develop with them as they age. The following list of the best savings accounts for kids will help you to choose the best account based on what you and your kid value most.

Capital One's Kids Savings Account: Best Overall


  • No fees and minimum balance requirement
  • Pay interest on any balance
  • The accessibility of a Teenage Checking Account with a debit card


  • Lower interest rate
  • Numerous savings goals necessitate the opening of multiple accounts
  • No ATM fee reimbursements on a checking account

Capital One's Kids Savings Account is one of the best savings accounts overall due to many features, including outstanding mobile banking tools, interest paid on any balance amount, the flexibility to set up numerous savings goals, and the ability to develop into an adult checking account with a debit card.

Capital One offers two accounts that enable children to learn about banking and money management throughout childhood and adolescence.

Capital One's Kids Savings Account offers 0.30% APY. There is no minimum balance requirement to start this account and no maintenance costs for your child to keep it open. The account has an automatic savings plan and the opportunity to set savings objectives for your kids.

USAlliance Financial's MyLife Savings for Kids: Best for Young Children


  • The highly lucrative interest rate on the first $500
  • $10 in birthday bucks is paid annually until age 12
  • The ability to open a checking account at the age of 13
  • Signing up for a credit union is simple and essentially free


  • No use of a debit card or ATM until the age of 13
  • Parents and kids must be both members of the credit union
  • A few other accounts pay interest on the entire balance

It's challenging for parents to find a better account than USAlliance Financial's MyLife Savings for Kids who want to open their account at a young age. It ranks as the best savings account for young children because of its yearly birthday incentive for pre-teen investors. It gives a birthday bonus of $10 to kids under 13 in addition to higher competitive interest rates on their first savings.

USAlliance knows how much kids adore birthday gifts and doubles up that into incentives for children to have their own savings accounts.

USAlliance Financial is a full-service credit union. Anyone in the country is welcome to join.

Alliant Credit Union's Kids Saving Account: Best for Teens


  • A mobile banking app with parent and kid-friendly features
  • Teens can open a checking account with a debit card at the age of 13
  • Teen checking account offers refunds for ATM fee and pays interest


  • Interest is paid when a balance is $100 or more
  • No debit card or ATM before age 13
  • Certain youth accounts provide higher interest rates but only on small balances.

With no fees, a competitive interest rate, and an outstanding mobile banking app for parents and kids, Alliant Credit Union immediately starts your kid's money-saving journey. When your child gets older, Alliant Credit Union offers even more helpful features making it one of the best savings accounts for kids.

Alliant is a full-service credit union anyone can join, and the process is easy and free. Alliant will pay the $5 opening deposit into your kid's savings account.

Where Can You Open Savings Accounts for Kids

It is easy and simple to start the account opening procedure at home on your schedule, as many banks and credit unions permit the online opening procedure. You must become a member of the credit union to access the accounts held there. You or another adult acting as the main account holder must also apply for these accounts, as they are for younger kids.

After opening the account, you must set up the initial balance or join one of your accounts at another bank as a separate step. Give yourself three to five working days to complete all the procedures and prepare your kid saving account for regular use.

Bottom Line

A kid saving account is an excellent tool to instill the importance of financial management in your kids. These accounts are secure and provide several benefits. If you're considering opening a savings account for your kids, many options exist.

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