Best Savings Account for Kids in 2025
We must say that as a parent, you have a responsibility to teach your children about the value of money and the importance of saving. At the same time, you must know that choosing the right and the best savings account for kids is very important for your child. To capture this, in 2025, some banks are offering high-yield savings accounts designed specifically for children with extremely competitive interest rates, low fees, and user-friendly digital banking tools. Parents cannot ignore the Alliant Credit Union Children’s Savings Account or the BECU Early Savings Teen Account; we can say that the best savings account for kids not only helps grow your child’s savings but also provides essential financial education resources. You need to know that understanding the benefits and features of these accounts can put your child on the path to financial success and responsible money management.
Best savings accounts for kids
It is your responsibility and knowledge to teach your children about the value of money and the importance of saving as it is an essential part of their financial education. We recommend that you open a best savings account for kids for your child that can help them develop good money management habits from an early age. By 2025, high-yield savings accounts designed specifically for children, with competitive interest rates and low fees, will become a convenience and a good tool to support their habits and future. Here are some of the best savings account for children in 2025:
Alliant Credit Union Kids Savings Account
You should know that Alliant Credit Union is known for its member-focused approach and competitive financial products. Their Kids Savings Account was created specifically for kids to help them learn the value of saving, while delivering attractive interest rates and no monthly fees. We wanted to let you know that this best savings account for kids offers a competitive interest rate of 3.10% APY on balances over $100. It’s also a no-frills savings account that’s great for young savers who may not have a lot of money to put aside when they’re first starting out.
What’s more, we wanted to mention that parents can set up joint ownership of the account, giving them control while their kids learn how to manage their savings. You might also know that this best savings account for kids can be managed online, making it easy to track balances and transactions. Parents can rest assured that we ensure Alliant Credit Union also provides educational resources to help children understand the basics of saving and financial responsibility. However, we will say it is important to note that interest is only charged on balances over $100. You should pay attention to this as it may be a consideration for very young savers starting out with small amounts.
Benefits
- Eligibility: Ages 12 and under
- Interest rate: 3.10% APY (applies to balances of $100 or more)
- Maximum balance for Interest: No limit
- Minimum balance to Earn Interest: $100 average daily balance
- Monthly fee: None
- ATM access: Available
- Online access: Manage your account conveniently online.
- Financial learning: Access to kid-friendly financial education tools.
Pros
- High interest rate for balances over $100
- No monthly maintenance fees
- Easy online account management
- Educational resources available
Cons
- Requires a balance of $100 to earn interest
- Limited branch locations
First Tech Federal Credit Union Start Up Savings
The First Tech Federal Credit Union Starter Savings Account offers an impressive APY of 5.00% on balances up to $1,000. This high interest rate can help kickstart your child’s savings. It also serves as a great teaching tool for learning about compound interest. This savings account for kids has no monthly fees. That means any money earned from interest stays in the account.
Start-Up Savings Accounts encourage a collaborative approach with parent or guardian involvement. This support is especially valuable for younger account holders. It allows for open communication about money between children and parents. It also creates opportunities for shared learning experiences.
Parents and guardians should guide their children through setting up savings and tracking progress. They can also help children make informed financial decisions using the best savings accounts for kids. This account can be opened for as little as $0.01. It is highly accessible for families starting on a low budget. Parents and guardians can set up account alerts and monitor their child’s online activity. This helps them guide their child through their financial journey. First Tech also provides educational materials and workshops. These resources promote financial literacy among young members.
Benefits
- Grow your savings: Benefit from a 5.00% APY on balances up to $1,000
- Save without fees: Enjoy no monthly maintenance fees
- Easy account opening: Start saving with a minimal $0.01 deposit
- Manage your finances Anywhere: Utilize online account management and stay informed with account alerts
- Learn and earn: Enhance your financial literacy through valuable workshops
Pros
- High interest rate on balances up to $1,000
- No monthly maintenance fees
- Low minimum balance requirement
- Educational workshops available
Cons
- Lower interest rate for balances over $1,000
- Limited branch locations
BECU Early Saver Youth Account
As you dig deeper, you’ll find more savings accounts for kids and teens like the BECU Early Savings Teen Account, which we can say is another great and best savings account for kids option for young savers and even offers a great APY of 5.90% on a first deposit of $500. You can see that this high interest rate on an initial deposit makes it a great starter account for kids. We made sure that this account has no monthly maintenance fees and no minimum balance requirements, making it easy for kids to start saving.
The BECU Early Youth Savings Account is more than just a place to put money; it’s a stepping stone to building a solid foundation of financial literacy for young people. BECU recorgnises that children learn best through hands-on experience and you should know that they have provided resources to help parents and guardians guide their young savers. We’ve made sure these resources are aimed at demystifying basic financial concepts, such as saving, spending and the importance of budgeting, in an age-appropriate way.
We’ll tell you that BECU also offers free online and mobile banking for kids aged 13 and up, specifically allowing them to manage their accounts and develop better financial habits. At the same time, credit unions also provide educational resources and interactive tools to help kids understand money management so it won’t be a worry for parents when choosing the best savings account for kids.
Benefits
- Account availability: Open to those aged 17 or younger
- Yield: 5.90% APY on the initial $500, then 0.35% APY on amounts above $500
- Balance Requirement: None
- Service Charges: None
- Fund accessibility: ATM card offered
- Minimum balance: No minimum balance requirement
- Educational resources: Interactive financial education tools
Pros
- Very high interest rate on the first $500
- No monthly maintenance fees
- No minimum balance requirement
- Online and mobile banking available
Cons
- Interest rate decreases for balances over $500
- Only available to children aged 13 and older for online banking
Capital One Kids Savings Account
Check out the Capital One Kids Savings Account, which is a great option of the best savings account for kids and offers a 2.50% APY with no minimum balance requirement. We guarantee there are no monthly maintenance fees, meaning kids can start saving with whatever money they have. It’s a convenience that the Account can be managed via the Capital One mobile app, which is committed to providing a user-friendly experience for both parents and kids.
Because Capital One understands that convenience is key, especially for busy families who don’t have time to teach their kids about money, the Kids Savings Account will provide seamless online and mobile banking access for account holders ages 13 and up. Understand that this allows teens to track their balances and even make transfers from the convenience of their smartphone or computer. At the same time, parents can stay informed and involved in their kids’ financial journey.
We definitely would say that Capital One is more than just a place to save money, instead this is a Kids Savings Account that also provides access to interactive financial education tools. You should know that these resources are designed to make learning about money fun and engaging, covering essential topics like budgeting, saving, and responsible spending for kids. We have to ensure that by combining these educational components, Capital One aims to empower young people to make informed financial decisions throughout their lives and become the best savings account for kids.
Benefits
- Age range: Up to 17 years old
- Yield: 2.50% APY on all balances
- Balance threshold: Not applicable
- No monthly costs
- ATM access: Not provided
- No minimum balance, offering flexibility
- Educational resources: Financial education activities
Pros
- No minimum balance requirement
- No monthly maintenance fees
- Easy account management through the mobile app
- Educational resources available
Cons
- Lower interest rate compared to other kids’ accounts
- Limited in-person branch access
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First Central Savings Bank Young Savers Account
We’ll let you know that First Central Bank’s Junior Savings Account offers a competitive 4.75% APY on balances up to $25,000. It’s definitely designed for young savers and has no minimum balance requirements or monthly maintenance fees. You should also know that the bank offers digital and mobile banking options, making it easier for kids to manage their savings and develop better financial habits, and easier for their parents.
We confirm that the account provider recognizes the importance of parental involvement, so the Junior Savings Account is structured as a collaborative effort. In the growing journey of children in learning about money, parents or guardians play a vital role in guiding their children’s savings journey, especially for younger account holders. You should understand that this partnership promotes open communication about money matters, creates valuable learning opportunities, and strengthens the parent-child relationship. First Central Savings Bank has made efforts to make savings more accessible and convenient for young account holders. For you to know, the Account is designed to be easy to open and manage, with features tailored to the needs of young users. We can say that depending on the age of the child, they can access online banking and other digital tools and allow convenient account management from anywhere.
Benefits
- Yield: 4.75% Annual Percentage Yield (APY) for balances up to $25,000
- Fee-free: No monthly service charges
- Zero minimum: No required balance
- Online access: Internet and mobile banking capabilities
- Financial literacy training: Workshops to enhance money management skills
Pros
- Attractive interest rate on balances up to $25,000
- Monthly fees waived
- Open with any balance
- Financial literacy workshops provided
Cons
- Interest rate may decrease for balances over $25,000
- Limited physical branch locations
Why should my kid have a savings account?
It is important to be aware of the importance of instilling financial responsibility in children as this is an important aspect of parenting and savings accounts serve as a fundamental tool in this effort. As it is more than just a place to store money, a child’s savings account offers a myriad of benefits that contribute to the overall development of a child.
Build financial literacy
You have to recognize that savings accounts provide a tangible, practical introduction to core financial concepts. We support you to understand that children need to learn about the value of money, the importance of saving, and the concept of interest. At the same time, seeing their savings grow even if it is only a small amount reinforces the idea that money can work for them. More than anything, this hands-on experience helps demystify the financial world for children, making it less intimidating and more accessible.
Develops delayed gratification
We assure you that in today’s instant gratification culture, teaching children to delay gratification is essential for their habits and their future. You should understand that savings accounts encourage children to save for desired items or experiences instead of spending impulsively and wasting money. We are sure that this fosters patience, discipline, and the ability to plan for their future. You will know if children learn that by diligently saving, they can achieve their goals, whether it is a new toy, a video game, or a future educational activity.
Develop responsibility
As a parent, you should know that a savings account is a tool to help children manage their own finances. In addition, by managing their own money, children will learn to make informed decisions about saving and spending in real life. More specifically, we would say that children will develop a sense of responsibility for their financial health and understand the consequences of their choices when it comes to unnecessary spending. You won’t be disappointed that this promotes independence and self-reliance, preparing children to face financial challenges in the future.
Establish good savings habits
As parents we would say that expose your children early to promote the development of positive financial habits for their life. We find that if children learn to save at a young age, they are more likely to continue to practice it throughout their lives. You won’t be able to ignore how this habit can translate into responsible budgeting, wise investment choices, and a solid financial foundation for adults.
Learn about interest and growth
We are sure that savings accounts provide real-life examples and lessons on how money can grow through interest. You can also see how your kids can see their savings grow over time, even without adding to the account. You will also understand that this teaches them about the power of compound interest and the potential for long-term financial growth.
Setting and achieving goals
We understand that savings accounts allow children to set specific savings goals, which parents should know could be saving for a particular toy, summer camp or their child’s future education expenses. As a parent, it is your responsibility to teach and support the process of goal setting, savings planning and achieving goals as this builds self-esteem and reinforces the importance of perseverance in your child.
Understanding the concept of banking
We believe that savings accounts introduce children to the real world of banking and financial institutions. Parents should know and support children in learning about deposits, withdrawals and account statements as familiarity with these banking activities can reduce anxiety and build confidence as children move on to managing more complex financial products in the future.
Develop a sense of security
Parents need to understand that having a savings account can give children a sense of security and peace of mind. We can say that children knowing that they have a reserve of money can help them feel better prepared for unexpected expenses or future needs.
What to look for in a bank account for kids?
You should find and understand when choosing the right bank account for your child is essential to maximizing the benefits of saving and learning.
Age appropriateness
You should find out which accounts are designed for your child’s age group. While some are specifically for younger children, others are for teens. You need to be aware and make sure the features and functionality are appropriate for your child’s future stage of development.
Interest rates
We recommend looking for accounts that offer competitive interest rates. You should know and understand that while the interest earned may be modest, it is definitely a valuable learning opportunity for your child as they develop financial literacy. You need to know and compare interest rates from different banks and credit unions to find the best savings account for kids.
Fees
We recommend you should be aware when choosing the best savings account for kids with minimal or no fees such as recurring monthly fees, insufficient funds fees and automated teller fees. You ought to know that this ensures that your child’s savings are not eroded by unnecessary fees.
Minimum balance requirements
You should research and choose accounts that require no or low minimum balances as this makes it easier for your child to start saving on their financial journey regardless of their current financial resources.
Educational resources
We know there are many different kid-friendly accounts on the market, but you should look for accounts that offer educational resources, such as gamified learning experiences, informative essays or financial literacy classes to support kids learn about financial concepts.
ATM functionality
You should be aware that if your child is old enough, that’s when you need to consider an account that offers ATM functionality since this provides convenient access to cash when your child needs it.
Account security
We recommend that you research and choose the best savings account for kids while making sure the account is FDIC insured (for banks) or NCUA insured (for credit unions) to protect your child’s deposits.
Parental controls and monitoring
We recommend that as a parent, parental controls and monitoring features are essential for your child’s journey. So these features are created to allow you to monitor your child’s account activity, set spending limits, and approve transactions.
Online and mobile banking
You need to choose an account with a user-friendly online and mobile banking platform because this provides convenient access to account information and allows your child to track their savings from anywhere they want.
FAQs
Where should I put my child’s savings?
You should find and consider when putting your child’s savings into the best savings account for kids at a bank or credit union because we would like to say that these accounts are designed specifically for young savers and often offer features like competitive interest rates, no fees, and educational resources.
Which bank is giving 7% interest in savings accounts?
You should know that the best savings account for kids interest rates vary based on market conditions. We understand that it can be difficult for you to find a standard savings account that delivers a consistent 7% APY. Instead of that we will let you know about some banks and credit unions that may offer promotional rates or higher yields on specific types of accounts, such as high-yield savings accounts or certificates of deposit (CDs). One thing to keep in mind is to always verify current interest rates directly with the financial institution.
Which bank savings account is best for kids?
You do not need to worry since the best savings account for kids depends on your or your child’s individual needs and preferences. We encourage you to consider factors like earning rates, transaction fees, supervisory features, educational content, availability of services. You should also need to research different banks and credit unions to find an account that fits your child’s age and your family’s financial goals.
What is the best savings account to start for a child?
We would like to tell you that a good place to start is a child savings account at a local bank. You can also consider a credit union since these accounts are designed for younger savers. They often deliver features like no fees, low minimum balances, and educational resources.
You should be aware of finding the best savings account for kids that fits your child’s age. It should also align with your family’s financial goals.
Besides that, you need to consider the Capital One Kids Savings Account. The BECU Early Savings Teen Account is another good option. You can also look into First Tech Federal Credit Cooperative’s Start-Up Savings Account as a good place to start.
