Special baby savings accounts at many banks and credit unions let your young child or teen “graduate” from a piggy bank in their bedroom and learn how to save and use a bank account. Whether you want to help your child raise their balance or need an account to bank their income from an allowance or a part-time job, a youth savings account allows them to earn interest while also learning how to bank and create a savings habit. This piece will look at the best savings account to open for your baby and the starting process.

To find the best baby savings account, consider the interest rate, any fees or minimum balance restrictions, how you and your kid may access the funds, and how the account can grow with them as they mature. We’ve done the legwork for you, compiling a list of experts that makes it simple to select a winning account based on what you and your child value most.

Best Savings Account for Baby

The best baby savings accounts include competitive APYs, simple access to cash, and engaging financial literacy tools that teach children about money. Savings accounts for minors are available at many banks and credit unions, but the legislation requires a parent or guardian to open and jointly control the accounts. Here’s a look at the best savings accounts for babies and how they differ.

#1. Best Overall: Capital One’s Kids Savings Account

Capital One’s Kids Savings Account is our overall winner for the best youth savings account, with interest paid on any balance amount, outstanding mobile banking capabilities, the flexibility to set numerous savings goals, and the potential to expand into a youth checking account with a debit card.


  • Interest is paid on any outstanding balance.
  • There is no minimum balance and no fees.
  • A highly rated smartphone app with parental controls
  • Access to a Teen Checking Account with a Debit Card


  • The interest rate is lower than those of other options.
  • Having numerous savings goals necessitates opening multiple accounts.
  • There will be no ATM fee reimbursements on the checking account.

Capital One has put more thought and effort into child banking than many of its competitors, creating two account types for kids and teens and investing resources in building kid- and parent-centric mobile app experiences tailored to these accounts. These features, along with no minimum amount to earn interest, no fees, and the possibility to progress to a teen account with a debit card, make Capital One our recommendation for the best savings account to open for a baby.

#2. Best for Young Children: USAlliance Financial’s MyLife Savings for Kids

It’s difficult to beat USAlliance’s MyLife Savings for Kids account for parents starting their child’s account at a young age. Its annual birthday incentive for pre-teen savers contributes to its ranking as our top savings account for young children.


  • $10 in “birthday bucks” paid each year until the age of 12
  • The extremely low-interest rate on the first $500
  • Ability to open a bank account at the age of 13
  • Joining a credit union is simple and almost free.


  • No access to ATMs or debit cards until the age of 13.
  • Membership in a credit union is essential for both the parent and the child.
  • Certain other accounts pay interest on the entire sum.

#3. Best for Teens: Alliant Credit Union’s Kids Savings Account

Alliant Credit Union kicks off your child’s savings experience with a competitive interest rate, no fees, and an excellent mobile banking app created specifically for kids and parents. Then, as your child grows older, Alliant’s Teen Checking offers even more beneficial features, earning it our recommendation for the best savings accounts for teens.


  • An affordable interest rate
  • A mobile banking app with child and parent-friendly features.
  • At 13, a teen checking account with a debit card is accessible.
  • Teen checking pays interest and reimburses ATM fees.


  • Interest is only paid on balances of $100 or greater.
  • No ATM or debit card before the age of 13.
  • Some youth accounts provide excellent interest rates, but only on little sums.

Starting a bank account is an evolving process for younger children. Alliant offers an outstanding Stage 1 option with its savings account to open for baby, followed by an even more fantastic Stage 2 option with its Teen Checking Account.

#4. Best for Maximizing Interest: Spectrum Credit Union’s MySavings Youth Account

With an interest rate so high it appears to be a misprint on Spectrum’s children’s savings accounts, the credit union wins our highest rating for the most significant interest earnings in a kid’s account.


  • Offers the best nationally accessible APY on a savings account for the first $1,000 deposited.
  • The account can be kept till the age of 21.
  • Account holders aged 13 and up are eligible to request an ATM card.


  • There is no corresponding teen checking account available.
  • Each individual is only allowed one MySavings Youth Account.
  • Most consumers cannot join a credit union for free.

#5. Best for Substantial Savers: Northpointe Bank’s Kids’ Savings Account

The Northpointe Bank Kids’ Savings Account has fewer features than others. But it has a high-interest rate that can be reached with relatively high balances. This is why we chose it as the best baby savings account for people who save a lot.


  • Significantly higher than the average interest rate on accounts over $10,000.
  • There are no fees.
  • No membership is required because it is a bank.


  • There are fewer bells and whistles than in other accounts.
  • Some accounts pay more interest on the first $1,000.
  • No teen checking account is available

Northpointe Bank takes a different approach, forgoing fancy account features in exchange for a tremendous interest rate on both low and high balances, making it our winner for the best savings account to open for a baby with substantial savings.

Requirements for Starting a Baby Savings Account

Children’s savings accounts are less complicated than others. As a result, there are only a few requirements for opening one:

  • Initial down payment. Most accounts do not require an initial deposit, but you and your child should be prepared to deposit $25 to $100 to get the account started.
  • Daily minimum balance For example, if the account balance is less than $20 at the end of the day, the bank may charge a fee.
  • Monthly account fees Children’s savings accounts typically do not have monthly maintenance fees but check with your lender to be sure.

In addition to meeting the account requirements, you must give your child a valid form of identification to open the account. In general, one of the following should suffice:

  • Social Security card
  • School ID
  • Passport
  • Birth certificate
  • Medical records
  • Driver’s license if your child is of driving age

How to Open Savings Account for a Baby

You can always open a savings account in your name with money for a baby, but starting one in your child’s name gives them not only a way to save but also a great gift and a way to learn about money as they grow up.

The procedure is simple enough, although it does necessitate some planning.

#1. Creating the Account

Legally, children under 18 are not permitted to sign documents. As a result, you’ll also need to register an account in your name. When the child reaches the right age (18 or 13 if the account is converted to a checking account), you can go to the bank and have your name removed.

However, while your child is still a minor, you will have control over the account. You can make withdrawals and deposits and close accounts as needed.

#2. Fees

Savings accounts frequently include fees, but there are methods to avoid them. Begin by speaking with your present bank. They might let you link this new account to the ones you already have. This would let you avoid fees and minimum balance requirements.

Otherwise, look for a banking organization that charges little or no costs. Some banks waive fees if a particular amount of money is deposited into the account each month.

#3. Location

Even though online banking is easy for adults, you will want to take your child to the bank where the money is kept at some point. Choosing a bank close to home makes it easy for your growing child to make deposits often and learn the value of saving. This method will also teach your child about banking services and how to communicate online with a bank.

#4. Investment Ideas

Many savings accounts pay very little interest. The best rates are frequently available through local credit unions, which also frequently offer the added benefit of no fees. Discuss your alternatives with local banks to see if you can get better loan rates or tax breaks.
As the fund’s increase, you can transfer them to a more appealing certificate of deposit or investment account, allowing your child to earn more interest on his or her savings.

What Are the Advantages of Starting a Baby Savings Account?

One clear benefit of opening a baby savings account is that it gives your child a chance to learn how to handle money, how banks work, and why saving is essential. They can learn the mechanics of using a bank account and begin to realize the value of seeing their balance grow thanks to earned interest and other perks.

How We Selected the Best Baby Savings Accounts in 2023

We started our research by identifying nearly two dozen of the best savings accounts to open for a baby that is available to consumers nationwide and pay at least 0.25% APY. Then, we dug deeper into the facts to find the ones with no fees, the highest interest rates, the highest balances, and a free checking or spending account. We also looked at each account’s age limits, mobile app features, and any other benefits it offered. This helped us narrow the list down to the top five candidates.

Can I open a savings account for my infant?

Yes, you can open a savings account for your baby while they are still newborns. Traditional banks, credit unions, and online banks can all provide savings accounts for babies and children. You can also look into other savings accounts, such as 529 college savings plans or custodial accounts.

Which investment is best for a baby?

5 Account Options for Investing in Children

  • Custodial Roth IRA. 
  • 529 Education Savings Plans.
  • Coverdell Education Savings Accounts.
  • UGMA/UTMA Trust Accounts. 
  • Brokerage Account.

What kind of account should I open for my newborn?

Custodial brokerage account: A brokerage account created under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA) and administered on behalf of a child by a parent or guardian.

How much money should you have saved for a newborn?

A typical pregnancy costs between $30,000 and $50,000 without insurance and $4,500 with coverage. Many costs, such as tests that at-risk mothers or those over 35 may choose, are not fully covered by insurance. Make sure you have at least $20,000 in the bank.

What can I do financially for a newborn?

How to Save Money for a Baby in 9 Months:

  • Discuss money with your partner.
  • Make a new budget.
  • Create an emergency fund.
  • Examine your life and disability insurance policies.
  • Make a debt-reduction strategy.
  • Examine your retirement and other financial objectives.

How do I set up a fund for a baby?

A 529 account can be opened in (as little as) four steps:

  • Decide on a strategy. You must select between a savings and a prepaid plan.
  • Select a recipient. This is likely your child, but remember that you can change the beneficiary without penalty.
  • Create an account.
  • Create your portfolio.

What is the best way to grow money for a child?

  • Mutual Funds for Kids 
  • Exchange-Traded Funds
  • Savings Bonds. 
  • Cash. 
  • Annuities. 
  • Insurance Policies.


Everyone wants to see their children succeed financially, and opening a bank account is a fantastic opportunity to lay the groundwork for a healthy financial future. Most bank accounts for children are simple to start and maintain. You can also use life experiences and online financial education tools to help your child improve his or her financial literacy. Banking is a part of everyone’s life, and starting a savings account for a baby early might help your youngster gain confidence and competence with money.


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