Kid's savings accounts can be a great way to teach your child financial literacy. Teen savings accounts can help children and teenagers learn how to make savings goals and build up their savings. We've reviewed several national banks and credit unions with savings accounts for kids to find the best options for your family.
Our top picks require no minimum opening deposit or monthly service fees. Some also come with additional perks — like solid interest rates or debit cards — to help you manage the account.
Below, you'll find our picks for the best savings accounts for children. These institutions have stayed as our top picks for the last few months because they continue to stand out for their minimal bank fees and unique perks.
Best Savings Accounts for Kids
- Chase First Banking℠ Account: Best Brick-and-Mortar Bank
- Capital One 360 Kids Savings Account: Best Online Bank
- Alliant Credit Union Kids Savings Account: Best Credit Union
All of the financial institutions on our list are protected by FDIC or NCUA insurance. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Compare the Best Kids' Savings Accounts
no monthly service fee
None
$0
- No minimum opening deposit
- No monthly service fees
- Debit card included
- Savings tools to help kids set goals
- Parental monitoring tools that let you set up alerts or limits on purchases
- Unable to earn interest on account
- Fee for non-Chase ATMs
- -
2.50%
$0
- Competitive APY
- No monthly service fees
- No minimum opening deposit
- 24/7 live online chat
- Limited physical branch locations
- Limited customer service hours over the phone
- Over 280 branches in NY, LA, TX, MD, VA, NJ, and Washington, DC
- Schedule regular transfers from your account for allowance or other deposits
- Interest compounded daily, paid monthly
- FDIC insured
3.10%
$5 (Alliant will pay it for you)
- Low minimum opening deposit
- Alliant will cover the $5 minimum opening deposit
- No monthly service fees
- Easily waive paper statement fee if you sign up for eStatements
- Eligible for new accounts after your child turns 13
- ATM card included
- Need at least $100 in account to earn interest
- Interest compounded monthly
- $1 paper statement fee
- Several ways to become a member; the easiest is to join Foster Care for Success (Alliant will cover your $5 membership fee)
- You may use the Alliant Savings ATM card to view your account balance, withdraw cash, or deposit cash at Alliant ATMs
- 80,000+ free ATMs
- Interest compounded and deposited monthly
- Member NCUA
Best Kids Savings Account Reviews
The best savings accounts for kids offer good monitoring features, educational resources, and low monthly fees. The banks and credit unions that offer savings accounts for kids should be up-front about what parental controls the account offers, what fees come with the account, and whether the account comes with a debit or ATM card.
Here are the best savings accounts for kids as picked by Business Insider editors in 2025.
Best Brick-And-Mortar Bank
The Chase First Banking℠ Account doesn't require a minimum opening deposit or charge monthly service fees. The account also has useful management features for both kids and parents. Kids can create savings goals and track how much they've saved on the bank's mobile app. Parents may set up alerts or limitations on how their child uses the bank account.
Chase also has more than 4,700 branch locations and 16,000 free ATMs, which is beneficial if you're looking to bank close to home.
The bank charges out-of-network ATM fees if you don't use a Chase ATM. You also won't earn interest on the account, so it's better as a money management tool than a long-term savings option.
Bear in mind that to open the Chase First Banking℠ Account, parents must also already have a Chase checking account.
Best Online Bank
The Capital One 360 Kids Savings Account embodies online banks' strengths — no monthly service fees, a competitive interest rate, and 24/7 live chat customer support. This will be a strong contender if you're looking for an online account that's easy to manage since you won't have to worry about standard bank fees.
The Capital One 360 Kids Savings Account is an online account that can be opened from anywhere in the US, but your banking experience may vary depending on where you live. The bank has branch locations in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C. If you don't live nearby any of these areas, it might not be easy to deposit cash.
Capital One 360 accounts don't use ChexSystems to check your credit history when you apply for an account. This means that Capital One 360 accounts are also second chance bank accounts, which could be helpful if you have bad credit history.
Best Credit Union
The Alliant Credit Union Kids Savings Account stands out from other children's accounts because it pays a high interest rate if you keep a daily balance of at least $100. It also comes with an ATM card, so your child will be able to review their account balance or make transactions at Alliant ATMs.
Opening an account with a credit union usually entails specific membership requirements. But Alliant lets you join online from anywhere in the US if you donate $5 to Foster Care to Success.
Bank Trustworthiness and BBB Ratings
The Better Business Bureau assesses businesses based on responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the BBB ratings of our top picks:
| Institution | BBB rating |
| Chase | A- |
| Capital One | A+ |
| Alliant Credit Union | A+ |
Chase Bank has an A- rating from the BBB because it hasn't responded to one complaint filed against the bank.
All three financial institutions have been involved in recent public controversies.
In 2024, Alliant settled a class-action lawsuit, agreeing to pay $86,750 to the lawsuit's members. The lawsuit says that Alliant denied services to DACA recipients and other immigrants because of their citizenship status rather than their creditworthiness. By settling, Alliant does not admit wrongdoing.
In December 2024, the CFPB sued JPMorgan Chase, Zelle, Bank of America, and Wells Fargo for not doing enough to protect customers who use Zelle from fraud. The CFPB says that over $870 million has been lost due to Zelle's lack of fraud protection, and that the listed banks did not properly investigate or reimburse complaints.
In 2023, JP Morgan Chase was required to pay $75 million in a settlement with the U.S. Virgin Islands that accused the financial institution of failing to report suspicious activity regarding Jeffrey Epstein's sex trafficking operation.
In January 2025, the Consumer Financial Protection Bureau sued Capital One. The CFPB says that Capital One unlawfully misled customers about what the best interest rate was on Capital One savings accounts, leading to consumers missing out on more than $2 billion in interest payments.
Capital One used to have an account called 360 Savings. In 2019, Capital One launched the new 360 Performance Savings Account, which paid a much higher interest rate. Many customers thought their old savings accounts would transition into this new one, but in reality, they had to open a new 360 Performance Savings Account to earn the higher rate.
Introduction to Kids' Savings Accounts
Why Open a Savings Account for Your Child?
Opening a savings account can be a great way to introduce financial education. A kid's savings account is a type of joint bank account, so it's a secure place for storing money. You can show your child how to save money and build smart financial habits. It can also teach kids about compound interest.
Key Benefits of a Kids' Savings Account
The key benefit of getting a kid's savings account is that you can grow your child's savings in a relatively accessible and safe way.
A kid's savings account is also a specialized bank account specifically designed for anyone under the age of 18. These accounts have parental monitoring features, so you can help your child manage their money. For example, parents can review their child's transaction history or help them save for financial goals.
Features to Look for in a Kids' Savings Account
High Interest Rates on Kid's Banking
For the most part, kid's savings accounts are interest-earning accounts. The best high-interest savings accounts for kids are available at online banks or credit unions.
No Monthly Fees on Kid's Banking
At most banks, there are no-fee savings accounts for children. You won't have to worry about monthly bank maintenance fees or overdraft fees since banks will waive their average daily balance requirements for children.
Educational Tools and Resources for Kid's Banking
The best banks have kids' savings accounts with educational tools so your child can understand the benefits of saving money.
Our top picks let you create individual savings goals through the bank's mobile app or online banking. You can customize goals and set deadlines to track your progress.
Kid's Savings Account Parental Monitoring Features
Savings accounts for kids have parental controls, so your child isn't managing an account on their own. Parents and kids can use online banking for viewing transaction history, setting goals, and other features.
Parents have access to more features than their children, so they can set limits or help fund the account with another bank account.
How to Open a Savings Account for Your Child
Children's Savings Account Eligibility Requirements
A kid cannot open a savings account on their own. In order to open any bank account for a minor, a parent or legal guardian must be present.
Some banks will also enforce age restrictions for kid's banking products. For example, Chase First Banking is limited to kids between the ages of 6 and 17.
Step-by-Step Guide to Opening a Children's Savings Account
You can open a children's savings account online or at a branch.
Since you're opening up a joint bank account, both the adult and child will need to provide personal information so the bank can verify their identities.
Adults typically need to provide their Social Security number or taxpayer identification number as well as two forms of government IDs. Kids will also need to provide IDs. Acceptable government IDs include a driver's license, passport, and school ID.
Some banks, like Chase, require the parents to already have a checking account with them. Others, like Capital One, let you link an external bank account instead.
Pros and Cons of Kids' Savings Accounts
| Pros | Cons |
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Alternatives to Kid's Savings Accounts
Below, we list other savings and investing options for kids. The best choice for you will depend on how you plan to use the account. Bear in mind that you can also open multiple accounts if you choose.
Kid's Savings Accounts vs. Kid's Debit Cards
A kid's debit card is another useful tool for teaching kids about money.
A kid's debit card is attached to a bank account or mobile app. It can also be a prepaid debit card. Similar to a kid's savings account, the parent opens the account with the child. The child can use the debit card, but the parent can monitor and set limits for their child.
You might want to get a kid's debit card for your child if you want to teach them more about spending. With a debit card, your kid will be able to make purchases at stores and withdrawals at ATMs.
Kid's savings accounts are more suitable for teaching kids about saving. You or your child will still be able to make withdrawals, but some banks enforce limits when you take out money. You might be limited to six free withdrawals per month, and then you'll have to pay an excess withdrawal fee for additional withdrawals.
Kid's Savings Accounts vs. Custodial Accounts (UGMA/UTMA)
A custodial account, or UGMA/UTMA account, is a type of brokerage account. A parent can open a custodial account for their child to invest in their kid's future. Their child can take over the account once they reach a certain age, typically either 18 or 21 depending on the state.
A custodial account is ideal for your child's long-term financial needs. Meanwhile, a savings account is better suited for your child's short-term financial needs. You can also use a savings account to teach your child about saving and managing your money.
Kid's Savings Accounts vs. 529 College Savings Plans
A 529 college savings plan is a tax-advantaged account that specifically for a child's education expenses. The parent will own and primarily manage the account, and the child acts as the beneficiary.
You might like a 529 plan for your child if you're planning to save for future academic needs, like college tuition or private school. You're better off with a savings account if you are looking to save money for more general purposes.
Also, keep in mind that with a 529 plan you're investing money whereas with a kid's savings account, you're saving money in a bank account. That could sway whether one of these accounts is a better fit for your child.
Kid's Savings Account FAQs
There isn't a recorded interest rate for kid's savings accounts specifically, but the average savings account interest rate is 0.41% APY, according to the FDIC.
Typically, there aren't any monthly service fees or overdraft fees associated with kids' savings accounts. There might be out-of-network ATM fees if you use an outside provider or excess withdrawal fees if your bank enforces a monthly withdrawal limit.
You can help your child maximize their savings by teaching them about compound interest and how to set savings goals.
Investing for a child will likely earn more money in the long run since they will have years for investments to pay off. But a savings account is a good tool for teaching kids about money and savings strategies. Ultimately, there's no reason you can't open a savings account and a brokerage account for your child, if you're able.
The best bank account for a child shouldn't charge fees for minors. If you want access to their account or to be able to teach them about savings and how to budget, look for an account with strong parental guidance features.
Why You Should Trust Us: Our Expert Panel for the Best Kids' Savings Accounts
We talked to banking and financial planning experts to inform these picks and provide advice on finding the best banks and credit unions for your needs.
Here's what they had to say about bank accounts. (Some text may be lightly edited for clarity.)
How can someone choose a bank that's the right fit for them?
Tania Brown, CFP® professional and vice president of coaching strategy at OfColor:
"Obviously, you want to make sure it's FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you're okay online. Do you write checks? Do you not write checks? So it's thinking through how your experience with it is going to be before you make that decision."
Sophia Acevedo, banking editor, Business Insider:
"I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I'm searching for an interest-earning bank account, I'll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account."
What should someone look for in a brick-and-mortar bank?
Sophia Acevedo, Business Insider:
"With a brick-and-mortar bank, I would review all the bank accounts and make sure there are options where I can waive monthly service fees. I would also factor in the overall banking experience. For example, I would see if a bank lets you exchange foreign currency — not all do — and has a strong mobile app."
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
"How accessible it is. So where are the branches? And if I am to go out of town or something, how accessible is my money to me?"
What should someone look for in an online bank?
Tania Brown, CFP® professional:
"With an online bank, absolutely online customer service, because you do not have the advantage of walking inside and talking to a human being. How often are you able to get them? What are their hours?"
Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life":
"How onerous the transfer process is, transferring money in and transferring money out. Is it same day, next day? Is it pretty easy to sync a brick-and-mortar checking account to this particular high-yield savings account?"
Mykail James, CFEI:
"When it comes to online banks, you want to be a little bit more strict about what type of interest rates they're providing. That's the biggest thing, because online banks are supposed to have the higher interest rate because they don't have the overhead of the brick-and-mortar. You want to make sure that it's well above the national average. What type of securities do they provide? Do they have two-factor identification? If it's an online bank, they should definitely have — at the bare minimum — two-factor authentication in how easy it is to change your passwords and things like that, because you want to be a little more hypersensitive about the cyber security for a strictly online bank."
What makes a savings account good or not good?
Roger Ma, CFP® professional:
"It might not be as seamless to get your money out of an online savings account as it is a brick-and-mortar, but you don't want to have so much friction where it's such a pain to get the money out when you need it."
Our Methodology: How We Chose the Best Kids' Savings Accounts
At Business Insider, our goal is to create useful content that helps you make good decisions about your money. We recognize that every person has distinct preferences, so we provide ample options for you to find the most suitable financial product or account for you.
Business Insider's personal finance team is editorially independent, meaning that the business team doesn't tell the team's writers and editors what to write. You can learn more about how we review products through our editorial standards page.
First and foremost, we wanted to provide you with options. We researched the biggest financial institutions to find the best brick-and-mortar banks, online banks, and credit unions in the U.S. that offer kids' savings accounts.
Then we compared different account features and bank services to find the standouts of each type of institution. For our best brick-and-mortar institution, we looked for an account that required minimal bank fees and came with a widely accessible branch and ATM network. For online banks and credit unions, we looked for an account that was easy to open, paid high rates, and charged little to no fees.
We rate bank products on a scale from one to five stars, with one star being the lowest rating, three stars being an in-between rating, and five stars being the highest rating possible.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience. See our bank account methodology to learn more about how we rate savings accounts.
