If you want to set your child up for financial success, you might be considering opening a savings account specifically for him or her. Not only can you use it to contribute funds for their future, but it can also be used as a valuable tool for your son or daughter to learn the importance of saving early on. When choosing a kids’ savings account, consider the institution you are opening it with, any associated fees and the interest rate the savings can earn.
Keep reading to find out more about the best savings accounts for kids.
The Best Savings Accounts for Kids
- Alliant Credit Union Kids Savings Account
- Boeing Employees Credit Union Early Saver Account
- Capital One Kids Savings Account
- Citizens Bank CollegeSaver
- PNC ‘S’ Is for Savings
Best for: Credit union members who want to open a savings account for kids under 12
Pros: High interest rate; joint ownership for parents, grandparents or guardian available; online and mobile banking; low $5 initial deposit required; no monthly fees if you opt in for eStatements
Cons: Joint account owner must be an Alliant member; $1 paper statement fee
The Kids Savings Account offered by Alliant Credit Union is available to children and grandchildren of credit union members who are 12 and under. The biggest perk of this account is its high APY — 1.90 percent as of Oct. 10, 2018. The credit union will also waive the initial deposit to start the account. Deposits can be made via ATM or mobile app, and the app also allows children to easily set savings goals.
Best for: Those who want the potential to go from a savings to checking account
Pros: Premium interest rate on first $500; no minimum balance requirement; no monthly fee; free online and mobile banking
Cons: APY drops significantly after first $500; eStatements and online banking is not available for those under 13
Children under the age of 18 can automatically become a BECU member by opening an Early Saver Savings Account. Enrollees will receive a 6.17% APY on the first $500 deposited into the account, after which the APY will drop to 0.10 percent. BECU also offers a conversion checking account option that can be opened once the account holder turns 18.
Best for: Online tools, including the ability to transfer funds, set up automatic payments, set up and track savings goals, and make mobile deposits
Pros: 1.00% APY; no monthly or maintenance fees; no minimum deposit to open or keep the account
Cons: Lower APY than other options
The Kids Savings Account from Capital One has no minimum or fees and an interest rate that is higher than the national average. There is an option to enroll in automatic savings so allowances can be deposited on a schedule, as well as the option to link multiple accounts. Kids can also set up savings goals for each of their accounts. The account is accessible via a mobile app that allows for parental controls.
Related: Best Online Savings Accounts
Best for: Those who can meet monthly account minimums so account holder can receive a large bonus on their 18th birthday
Pros: No monthly maintenance fees; $1,000 bonus plus interest when child turns 18 if monthly account minimums are met
Cons: Minimum balance of $500 to open an account if child is between 6 and 12; must be opened before a child’s 12th birthday; low interest rate
Your son or daughter can earn $1,000 toward their college education with this child savings account. Note that there is a monthly minimum with this account: $25 for children under 6, and $500 for children between 6 and 12 years old. The APY is on the low end at 0.05 percent, but the $1,000 bonus can make up for it depending on how much is placed into the account and for how long.
Best for: Access to child-friendly financial learning tools
Pros: Interactive banking and educational tools designed for kids; interest earned on balances as low as $1; Auto Savings can establish a savings routine for your child; unlimited deposits; no monthly service charge
Cons: $25 minimum to open; low interest rate
With this account, children can learn about saving and spending money with tips from their favorite Sesame Street characters and interactive online banking experiences. You can also set specific savings goals with this account. The account is free of service charges for those under 18; for those 18 or older, you can avoid the $5 monthly service charge by maintaining a $300 monthly balance or by making an automatic transfer of $25 or more each month. The biggest negative of this account is the low interest rate, which was 0.01% APY as of Oct. 10, 2018.
Click through to read more about the 10 best student savings accounts.
More on Savings Accounts
- Here’s How the Average Savings Account Interest Rate Compares to Yours
- 10 Best Savings Account Promotions Available Now
- How Much Would You Have If You Saved $1 a Day for Your Entire Life?
- Watch: How to Find Your Routing Number in 60 Seconds
Rates are accurate as of Oct. 10, 2018.
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