5 Best Savings Accounts for Kids

Overview: First Tech Start Up Savings offers a 5.00% APY on balances below $1,000. The yield drops to 0.10% on amounts above that. The minimum balance to open an account is $25, and there is no monthly fee.

A parent or guardian will need to be a joint owner of Start Up Savings, and you and your child will need to be credit union members. There is no minimum age requirement for your child; once they turn 18, Start Up Savings will convert it into a standard account.

Overview: A Primary Savings Account earns a competitive 4.00% APY on balances up to $500. Amounts above that earn much less — only 0.25%. The minimum to open an account is $5. The account is required in order to be a credit union member for both adults and kids, and a kid’s account is a joint account with a parent.

For children, Service Credit Union also offers a youth-oriented website with online games, music videos and learning materials to help teach the value of money. Opening a kids account may require calling customer service, unless you’re able to visit a branch. The credit union’s locations are primarily on military bases in and around the state of New Hampshire, or in Germany.

Overview: Boeing Employees' Credit Union's membership criteria is limited but its stellar promotional APY earns it a mention on this list. The Early Saver account lets you and your child tap a 6.17% on the first $500. But a lackluster 0.40% APY applies to any larger amount. Early Saver has other hallmarks of a good savings account, however, including no monthly maintenance fee and no minimum deposit requirement.

The BECU Early Saver Youth Account is available for kids 17 and younger. Once they turn 18, they can convert their kids savings account into a Member Advantage account, the credit union’s premier savings option. The Member Advantage account earns a 6.17% on the first $500. As with the Early Saver account, once the balance tops $500, the APY drops significantly. If you’re planning on depositing more than $500 initially, it may be worth looking at a high-yield savings account instead. Some of the best accounts have rates above 3% on all balances.

Overview: Capital One’s Kids Savings Account has a rate of 2.50% APY on all balances, which means earning more interest with higher balances over time. There are no monthly fees or minimum balance requirements. In addition, Capital One lets parents open and nickname multiple accounts for their kids’ separate savings goals. While Capital One operates primarily as an online bank, it has a few hundred branches and cafes.

While there’s no minimum age, kids under 12 must have joint accounts co-owned with a parent or guardian. The ability to transfer money is only available to parents and kids 13 and up. Teenagers up to age 17 can make transfers only between the Kids Savings Account and Capital One’s teen checking account, which made our list of best teen checking options.