Research shows kids' financial habits are largely developed by age 7, so it's critical to teach them to be smart about money early on.
A savings account can help your young one understand the value of a dollar, learn about interest and APRs and develop good budgeting habits. Many banks, credit unions and financial services companies have launched savings accounts designed especially for kids.
We reviewed dozens of them and picked the best ones, based on educational tools, kid-friendly features, fees, rates and other criteria.
Best savings accounts for kids
- Best for babies and young children: Capital One Kids Savings Account
- Best for financial education: PNC Bank S is for Savings®
- Best for a high APY: Spectra Credit Union Brilliant Kids Saving
- Best for free money: USAlliance Financial MyLife Savings for Kids
- Best for parental controls: Alliant Credit Union Kids Savings Account
Best for babies and young children: Capital One Kids Savings Account
Who's this for? The Capital One Kids Savings Account has no age requirement, so parents can open an account before their kid says their first word. (Grandparents and other adults must wait till the child turns 12.) Children can check the balance via the mobile app, but the adult on the account must sign in to transfer or withdraw funds.
Standout benefits: The Capital One Kids Savings Account has a competitive APY, no fees and no account minimum. Starting at age 8, your child can also open a Capital One MONEY Teen Checking account with more access. Both will automatically convert into an adult Capital One 360 Performance Savings™ when they turn 18.
Eligibility: Available to kids up to age 17.
Capital One Kids Savings Account
Annual Percentage Yield (APY)
2.50% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
No transfer limits
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Yes, when kid turns 8
Offer ATM card?
Yes, with the Capital One MONEY Teen Checking account
See our methodology, terms apply.
Pros
- No minimum requirements
- No fees
- Option to add a checking account with debit card access at age 8
- Kids can create multiple savings accounts for different goals
- Convenient parental controls
- Articles about how to teach kids about money
- Physical branch locations
Cons
- APY lower than other kid savings accounts
Best for financial education: PNC Bank S is for Savings
Who's this for? PNC Bank S is for Savings stands out for its unique educational features, which include Sesame Street characters teaching money basics and an interactive website where kids can move money between jars representing saving, sharing and spending. There's also a dedicated Student Hub to help older kids transition to new financial products like the Virtual Wallet Student®.
Standout benefits: There's no minimum deposit and the standard $5 monthly service charge is waived for account holders under 18. Interest starts accruing on balances starting at $1, with unlimited deposits and up to six free withdrawals per monthly statement period.
Eligibility: Available to kids under 18, with a minimum average monthly balance of $300 and at least one auto transfer of $25 or more each statement period from a PNC checking account.
PNC Bank S is for Savings®
Annual Percentage Yield (APY)
Call to get the current APY offering
Minimum balance
Minimum $25 deposit at bank, none if online
Monthly fee
$5, with options to waive
Maximum transactions
Unlimited deposits and up to 6 free withdrawals per monthly statement period
Excessive transactions fee
$3 per transaction
Overdraft fee
$36 per item
Offer checking account?
Yes, when kid turns student
Offer ATM card?
Yes, with the Virtual Wallet Student®
Terms apply.
Pros
- No minimum deposit if apply online
- Options to waive monthly fee
- Option to add a checking account with debit card access once a student
- Most robust offering of educational tools for kids
- Physical branch locations
Cons
- Have to call to get APY (likely lower than other kid savings accounts)
- Minimum $25 deposit if apply at bank
- $5 monthly fee
- Other fees apply
Best for a high APY: Spectra Brilliant Kids Savings Account
Who's this for? Spectra Credit Union's Brilliant Kids Savings has the highest APY of any child's account we've found. It's available on the first $1,000, so your little saver can really see their money grow.
Standout benefits: Despite the robust yield, there's no minimum balance or deposit required. Kids 13 and up have free ATM access.
Eligibility: Available to kids under 18. Anyone can join Spectra Credit Union with a free one-year membership to the nonprofit American Consumer Council.
Spectra Credit Union Brilliant Kids Savings
Annual Percentage Yield (APY)
10.38% APY up to $1,000, 0.05% APY on balances above $1,000
Minimum balance
None
Monthly fee
None
Overdraft fee
$30.00 per transaction
Offers checking account?
No
Offers ATM card?
Yes, for ages 13 and up
Terms apply.
Pros
- Excellent APR
- Available through age 17
- Nationwide availability
- Minimal membership requirements
Cons
- APR is only available on the first $1,000
- Adult joiners must have a separate membership
Best for free perks: USAlliance Financial MyLife Savings for Kids
Who's this for? With a Financial MyLife Savings for Kids account, your young saver will get a $10 birthday gift from USAlliance every year through age 12. That's in addition to no monthly fees or minimum balance requirement and a decent APY on the first $500.
Standout benefits: At 13, kids can transition to the MyLife Checking for Teens and the adult MyLife Savings.
Eligibility: Available to kids under 13. USAlliance is a credit union but you can become a member by joining a partner organization for free.
USAlliance Financial MyLife Savings for Kids
Annual Percentage Yield (APY)
2.00% APY up to $500
Minimum balance
None
Monthly fee
None
Maximum transactions
None
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Yes, when kid turns 13
Offer ATM card?
Yes, with the MyLife Checking for Teens
Terms apply.
Pros
- Strong APY for young savers
- No minimum requirements
- No fees
- Option to add a checking account with debit card access at age 13
- $10 deposit each birthday
- Physical branch locations
- Credit union membership is easy and free
Cons
- High APY has $500 cap
- Lacks educational tools
- Credit union membership required
Best for parental controls: Alliant Kids Savings Account
Who's this for? Alliant Credit Union's Kids Savings is a joint account that lets parents monitor activity, set limits and schedule automated recurring deposits (like an allowance). Your kids can watch their balance grow and make deposits on the mobile app.
Once they turn 13, they can add an Alliant Credit Union Teen Checking Account and start learning how to use a debit card.
Standout benefits: The Alliant Kids Savings Account only requires a $5 minimum balance (and a $100 minimum to earn the APY). You can get the $5 monthly maintenance fee waived by going paperless.
Eligibility: Available to kids up to age 12. Anyone who joins the nonprofit Foster Care to Success can be a member of Alliant Credit Union. (Alliant will cover the $5 membership fee.
Alliant Credit Union Kids Savings Account
Annual Percentage Yield (APY)
3.10% APY
Minimum balance
$5 minimum balance; $100 minimum to earn the high APY
Monthly fee
$5, with option to waive
Maximum transactions
Daily withdrawal and deposit limits apply
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Yes, when kid turns 13
Offer ATM card?
Yes, with the Alliant Credit Union Teen Checking Account
Terms apply.
Pros
- Strong APY for a kid savings account
- Option to waive monthly fee
- Option to add a checking account with debit card access at age 13
- Convenient parental controls
- Article tips on teaching kids to save money
- Credit union membership is easy and free
Cons
- $100 minimum to earn high APY
- $5 minimum balance
- $5 monthly fee
- Credit union membership required
- No physical branch locations
How to open a savings account for a child
Minors can't open savings accounts but a parent or guardian can set up a custodial or joint account on their behalf. A custodial account is in the child's name but is managed solely by the parent. A joint account allows both parents and kids access, but parents can limit withdrawals and other activities. Both accounts can be converted to a traditional savings account when the child turns 18.
If you are opening an account for your child, you'll need their legal name, date of birth, address and Social Security number. Some banks require parents to be customers before opening an account for their kids.
Is a child's savings account taxed?
To prevent parents from hiding income under their children's names, the IRS instituted the Kiddie Tax, which applies to dependent children who are under 18 at the end of the tax year or full-time students who are under 24.
For 2026, the first $1,350 of unearned income (interest, capital gains distributions, dividends, etc.) is not taxed, while the next $1,350 is taxed at the child's marginal tax rate.
Anything above $2,700 is taxed at either the child's or parents' marginal rate, whichever is higher.
How to choose a child's savings account
When choosing a savings account, there are several key factors to consider:
- Low or no fees: Look for accounts that don't charge monthly fees or require a high minimum balance.
- High interest rates: Find accounts that offer competitive interest rates to help your child's money grow.
- Accessibility: Make sure the account allows easy access for parents to monitor and manage but also encourages your child to save.
- Educational tools: Some banks offer apps or programs that teach kids about saving money.
- Minimum deposit requirements: Check how much money you need to open the account and if it fits your budget.
Why should your child have a savings account?
Having a savings account teaches your child important money skills early on, such as saving regularly and watching their money grow. It helps build financial responsibility, encourages goal-setting and gives them a sense of independence. Plus, saving young can set the foundation for good financial habits.
Alternatives to children's savings accounts
If you're not sold on using a traditional savings account for your child, there are other practical ways to help them manage money and learn financial responsibility.
Kids' checking account
A kids' checking account is designed specifically for children and often comes with features that help them learn how to manage money responsibly. Unlike a traditional savings account, a kids' checking account usually includes a debit card and online banking access. Some of our favorites include the Capital One MONEY Teen Checking and the Chase High School Checking℠.
Capital One MONEY Teen Checking
Annual Percentage Yield (APY)
0.10% APY
Minimum deposit/balance
None
Monthly maintenance fee
None
Overdraft fee
None
Offers debit card?
Yes
ATM access
70,000+ fee-free ATMs nationwide; no ATM fee reimbursement
Parental controls
Parents can lock or unlock their kid's debit card, but can't set spending limits or block certain transactions
Terms apply.
Pros
- Ideal for all young ages (ages 8+ eligible)
- Parent or guardian on teen checking account doesn't need a Capital One account; can link external bank accounts outside of Capital One
- 0.10% APY
- No minimum deposit/balance requirements
- No monthly service fee
- No overdraft fee
- No foreign transaction fee
- Large fee-free ATM network
- Parents can set up alerts, lock/unlock kid’s debit card, schedule automatic allowance, reward kids for savings goals
- Capital One has physical branches (but not nearly as much as other big banks)
Cons
- No ATM fee refund
- Daily limits apply on debit card purchases and withdrawals (including ATM withdrawals)
Chase High School Checking℠
Annual Percentage Yield (APY)
None
Minimum deposit/balance
None
Monthly maintenance fee
None
Overdraft fee
None
Offers debit card?
Yes
ATM access
16,000 fee-free ATMs nationwide; no ATM fee reimbursement
Parental controls
Parents can monitor account activity, but can't set spending limits or block certain transactions
Terms apply.
Pros
- Ideal for high schoolers (teens ages 13 to 17 can sign up)
- No minimum deposit/balance requirements
- No monthly service fee
- No overdraft fee
- Decently sized fee-free ATM network
- Parents can set up alerts
- Chase has lots of physical branches
Cons
- Parent or guardian on teen checking account must have existing Chase checking account
- Account must be opened at a Chase branch
- No APY offered
- $3 to $5 ATM fee at non-Chase ATMs
- No ATM fee refund
Kids' investment account
A kids' investment account lets you invest on a child's behalf and build long-term growth, and they come in different forms — like 529 plans, custodial accounts or teen-owned brokerage accounts. The Fidelity Youth Account is great for teaching kids how to invest because it gives teens hands-on experience buying stocks and managing their own portfolio with parental oversight. The my529 plan (Utah) is a strong choice for families focused on saving for college, thanks to its low fees and tax benefits. Meanwhile, custodial UGMA/UTMA accounts work well for broader long-term goals, which allow a guardian to manage the investments until the child reaches adulthood, when the funds can be used for almost anything.
Fidelity® Youth Account
Minimum deposit and balance
Teens aren't tied to any account minimums and there are no monthly fees
Fees
$0 commissions for online U.S. stocks*
Bonus
For a limited time: When you (parent or guardian) initiate the opening of a new Youth Account and your teen (aged 13 to 17) downloads the Fidelity Mobile® App and activates the new account, your teen will receive a $50 deposit as a reward1
Investment vehicles
Brokerage and trading: Fidelity® Youth Account
Investment options
Stocks, ETFs and mutual funds
Educational resources
Teens can access a financial curriculum made just for them to learn about saving, spending and investing
Terms apply.
Pros
- No account minimums or monthly fees
- Educational investing resources customized for young teens
- Requires parental oversight: In order for a teenager to sign up, their parent or guardian must already have an existing Fidelity account. Parents can monitor their child’s account activity and set up notification alerts for trades, transactions and spending
- Teen users get access to a free debit card with no subscription fees, no account fees, and no minimum balances
Cons
- Only available to teens aged 13 to 17
- In order to sign up as a teen, parent or guardian must already have an existing Fidelity account
*$0.00 commission applies to online U.S. equity trades and Exchange-Traded Funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules.
The Fidelity Youth Account can only be opened by a parent/guardian. Account eligibility limited to teens aged 13-17.
1Limited Time Offer. Terms Apply. Before opening a Fidelity Youth Account, you should carefully read the account agreement and ensure that you fully understand your responsibilities to monitor and supervise your teen's activity in the account.
my529 (Utah)
Minimum opening balance
None
Maximum overall contribution
$540,000
Portfolio options
4 age-based options with various risk tolerance, which automatically rebalances each year; 10 static options based on risk tolerance and U.S. stocks and bonds (investors will need to manually change their allocations); 2 customizable options (either age- or static-based)
Underlying funds
Investors can choose from Dimensional Fund Advisors mutual funds, PIMCO Interest Income Fund, Vanguard Group funds and FDIC-insured accounts from Sallie Mae Bank and U.S. Bank
Fees and expenses
Total asset-based expense ratio: 0.131% to 0.136% for my529 target-date options; 0.130% to 0.455% for customized static and age-based options, depending on investment mix; 0.211% for stable value option
Terms apply.
Pros
- Available to residents of any state
- Offers low fees
- Diverse investment options
- Tax benefits for residents
- No minimums
- Offers online tool to share gift contribution link with family and friends
Cons
- Expense ratios may be higher compared to other providers on our list
Kids' savings accounts FAQs
Why should I open a bank account for my child?
Opening a savings account for your child helps them build good financial habits safely and learn banking basics, like making deposits and tracking interest. As the parent or guardian, you'll co-own or manage the account, guiding how it's used. Beyond saving, it's also a good tool for teaching responsibility, patience and goal-setting.
What should I look for in a savings account for my child?
When choosing a savings account for your child, a good interest rate is important, but prioritize one with adequate parental controls and no monthly fees or minimum balance requirements. Some banks also offer educational tools to teach kids about saving. Choose one with easy online or mobile access so you and your child can track progress together.
How old does a child have to be to have a bank account?
While it differs slightly by state, typically, you must be at least 18 years old to open a bank account on your own. A parent or guardian can open a custodial account in a child's name at any time, however. Many banks also have special joint accounts that allow kids as young as 13 more access to funds under parental supervision.
What is a custodial savings account?
A custodial account is owned by the child but managed by a parent or guardian until they reach the age of majority, which is 18 or 21, depending on the state. Once they hit that age, full control of the account transfers to them.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every savings account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine the best savings accounts for kids, we analyzed dozens of U.S. savings accounts offered by online and brick-and-mortar institutions. We compared each savings account on various features, including APYs, fees, minimum deposit requirements, education tools for kids and customer service.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on that criteria, our picks for the best savings accounts for kids are:
- Best for babies and young children: Capital One Kids Savings Account
- Best for high APY: Spectra Credit Union Brilliant Kids Savings
- Best for free money: USAlliance Financial MyLife Savings for Kids
- Best for parental controls: Alliant Credit Union Kids Savings Account
- Best for financial education: PNC Bank S is for Savings®
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