An excellent way to help your child learn the value of sound financial management is to open a bank account for kids. These accounts are secure and provide many advantages. There are many options available if you’re thinking about starting a savings account for your kid. Here are some of the top savings accounts for kids and how they differ from one another. There are some banks that offer kids a debit card for account use.
Kids Bank Account
The purpose of a kid’s bank account is to teach kids how to manage their money and save. It enables guardians or parents to open an account in the name of their child and make deposits into the account. The bank may offer the option of a linked teen checking account and debit card depending on your child’s age. The best savings accounts for children provide competitive annual percentage yields, simple fund access, and entertaining financial literacy tools that teach kids how money works. Numerous banks and credit unions provide savings accounts for minors; however, by law, a parent or guardian must open and co-own the accounts.
How To Choose a Bank Account for Kids and Teens
The best options for kids’ savings accounts can be difficult to identify because there are so many available. The following are some things to think about when choosing a savings account for your child.
#1. Fees
No matter the type of account, minimizing bank fees is always a plus. Attempt to find a kids’ savings account without a monthly maintenance charge. If the account includes a debit card, confirm that it has fee-free ATM access.
#2. APY
You should look for a savings account that offers competitive rates because they pay interest.
#3. Minimum Requirements
Children who are just beginning their banking careers might not have enough money to meet some banks’ minimum requirements. Find a savings account with little to no minimum balance requirements.
#4. Educational Tools
Children should learn something new when opening a bank account with their parents. Numerous banks provide online resources and tools that can improve a child’s financial literacy.
#5. Parent-Friendly Features
The parent or guardian who holds the account for the child manages the child’s bank account because it is a custodial account. Think about financial institutions that provide parental controls and mobile access for account users.
Benefits of Kids and Teenage Savings Accounts
Open a savings account for your child or teenager today and enjoy a host of advantages. One benefit of a kid’s bank account is that it can aid in teaching your kids about financial responsibility. Kids who have a bank account are more likely to form sound money management practices, like regularly setting aside money for savings and restraining themselves from making impulsive purchases.
A kid’s bank account also gives them a place to put money aside for future objectives. For instance, your child can set money aside for their education, their first car, or even that new gaming console they’ve had their eye on. You are promoting early independence and responsibility in your kids by establishing a kid’s savings account. here is a list of banking institutions that offer a savings bank account for kids:
#1. Chase Bank
One of the top online banking options for children is Chase First Banking. Kids can withdraw cash from any of Chase’s 16,000 ATMs for no cost, and there are no monthly fees. The Chase mobile app also allows parents to set personalized spending and withdrawal restrictions and receive real-time transaction alerts. This bank account offers kids a debit card for use.
#2. Bethpage Federal Credit Union Young Adult Savings
If you prefer not to keep your money in a conventional bank, Bethpage is an option. Young Adult Savings from Bethpage The Federal Credit Union caters to young adults between the ages of 18 and 20. The account offers a competitive 3.00% annual percentage yield (APY) on the first $1,000 and a range of 3.00% to 0.61% APY on the remaining balance. You can manage your account, deposit checks, and send money to your loved ones using the credit union’s mobile app, which is also included with membership. Earning the APY necessitates a $5 daily minimum balance.
#3. Axos Bank
Axos First Checking is available to kids between the ages of 13 and 17, and it offers a 0.10% APY on deposits. In addition to covering up to $12 of your monthly ATM fees, there are no overdraft or maintenance fees. In addition, the account has daily transaction caps. Teenagers are only allowed to withdraw up to $100 per day and have a daily spending cap of $500. Parents can keep an eye on spending with the help of the app’s real-time alerts when using the joint First Checking account. Axos Bank also offers a debit card for kids’ bank account
#4. USAlliance Federal Credit Union MyLife Savings for Kids
Among the available youth bank accounts, MyLife Savings for Kids has several advantages. The first $500 deposited into the account yields kids 2.00% APY. You can access the account both online and via a mobile device, allowing you to manage your finances from almost anywhere in the world. Additionally, USAlliance adds $10 as a birthday bonus gift to each kid account owner’s annual deposit to recognize their birthday. However, to qualify for USAlliance Membership, an employer or location must be met, or an association partner must be joined.
#5. Capital One Kids Savings Account
Because Capital One is a hybrid bank, teenagers can learn about both online and traditional banking there. Kids who have a MONEY Teen Checking account earn 0.10% on any balance and aren’t concerned about monthly fees or minimum balance requirements can earn this interest on any balance. Additionally, Capital One provides Kids Savings, which has no monthly fees and an APY of 0.30% on all balances. It is simple to link the account to your accounts up until your child’s 18th birthday when it automatically converts into a 360 Savings account. this bank gives kids access to a debit card for account use. A network of more than 70,000 ATMs is accessible to the account for free.
#6. M&T Starter Savings Account
Although the interest rate is low, there are no monthly fees and no minimum balance requirements. Through the Starter Savings Account, you can access a variety of tools that automatically save money and encourage responsible financial management. Access to M&T Bank Starter Savings accounts is available offline, online, and via a mobile app. including offering kids a debit card that allows the use of 1,800 ATMs when opening the bank account.
#7. Greenlight
One of the most well-known platforms for banking exclusively for children, Greenlight, provides debit cards for young customers through its FDIC-insured partner bank, Community Federal Savings Bank. Utilizing Greenlight, you can oversee the debit cards of up to five kids. The first month is free when you sign up for a family plan, which starts at $4.99 per month. Greenlight is an app that offers cutting-edge tools to assist you in raising financially savvy children. Children can use the app to check off tasks for rewards, set savings objectives, and even experiment with fractional share investing.
#8. Alliant Credit Union Kids Savings Account
With the Kids Savings Account from Alliant Credit Union, children can set savings objectives, monitor their advancement, and deposit checks using the Alliant mobile app in addition to earning a competitive rate. Access to more than 80,000 surcharge-free ATMs nationwide is included with Kids Savings Accounts, along with a free Alliant Savings ATM card.
#9. PNC Bank
The account is designed to teach basic financial concepts through an engaging online experience featuring Sesame Street characters. Together, parents and children can engage in a variety of activities that will help their children develop good financial habits. With as little as a $1 deposit, interest can begin to accumulate. You can also easily set up recurring transfers from your own PNC account. S stands for Your children can learn to work toward a goal over time by using the goal-setting tool that is included with saving.
Sadly, there is a $5 monthly fee; however, if you make recurring deposits into the account of at least $25 each month or maintain a balance of at least $300 each month, you can avoid it. The account is only accessible in a few areas of PNC’s service area and requires a $25 initial deposit.
#10. Northpointe Bank Kids Savings
The account pays a 1.50% annual percentage yield (APY) on the first $1,000 deposited and yields 1.12% to 1.50% APY on the balances between $1,000.01 and $9,999.99. If your child is successful in saving at least $10,000, balance segments above that amount will earn 0.35% APY, which is still significantly higher than the national average. Anyone in the U.S. can open a Northpointe Bank account, but to apply for the Kids Savings account, you must download a PDF, complete it, and send it back to Northpointe by email or postal mail.
#11. Spectrum Credit Union’s MySavings Youth Account
The youth savings account rate at Spectrum is 7% APY. Only balances up to $1,000 are subject to this rate, though. While Spectrum does not provide teen checking accounts, it does allow children to maintain their MySavings Youth Accounts (and their fantastic interest rates) for a longer period than most other banks do, up until the age of 21. Additionally, it enables those 13 and older to choose an ATM card. When an account balance exceeds $1,000, the Primary Share Savings APY of 0.75% resumes. Although it is simple, joining Spectrum as a credit union member is necessary to open an account. A member must also maintain a $25 savings balance (though they will receive this money back if they ever decide to cancel their credit union membership).
#12. Copper
Kids aged 6 and older can purchase copper. The Copper debit card and app provide a platform for parents and their children to communicate, teaching your child how to make wise financial decisions. Additionally, using Apple Pay or Google Pay is simple when using the Copper Debit Card when shopping offline or online.
Additionally, users have access to enlightening guidance hand-picked by a team of experts in financial literacy who offer guidance on how to take charge of their financial future. Access your funds at more than 55,000 ATMs without any additional fees.
#13. Service Credit Union Primary Savings
Both children and adults can open a primary savings account. In actuality, a credit union membership is required. On balances up to $500, the account offers an appealing 5.00% APY. Higher amounts only earn 0.25%, a much lower rate. The account opening requires $5 as a minimum.
Service Federal Credit Union provides a youth-focused website for kids that includes educational games, music videos, and learning resources to help kids learn the value of money.
#14. First Tech Start-Up Savings
This provides a respectable 5.00% APY on balances under $1,000. On amounts greater than that, the yield falls to 0.10%. There is no monthly fee and a $25 minimum balance requirement for opening an account.
Start-Up Savings must be co-owned by a parent or guardian, and both you and your child must be members of a credit union. Your child can open a Start-Up Savings account at any age; however, it will become a standard account once they turn 18.
#15. Current
There are no monthly fees for the family-oriented financial app Current. It provides current accounts (for parents) as well as teen accounts, the latter of which functions as prepaid debit cards that parents load for their kids. Users of Current Accounts receive three virtual Savings Pods that can each hold up to $2,000 and have no limits on how frequently funds can be transferred in and out of them. Additionally, a virtual Savings Pod is added to every Teen Account. Currently, Savings Pods have an annual percentage yield (APY) that can reach 4.00%.
#16. Pen Air Federal Credit Union Level UP Savings Account
With the Level UP Savings Account from Pen Air Federal Credit Union, you have a one-of-a-kind chance to combine high-interest earnings with numerous savings bonuses. In actuality, this account will pay a great rate of interest on all balances of 0.299% APY, compared to many other kid-friendly accounts. Nevertheless, no matter what you do, Pen Air does not offer upgraded rates.
#17. GoHenry
A prepaid debit card, an app, and even financial education are all part of the GoHenry financial aid program for minors. Each child will receive a GoHenry debit card, which you can customize for $4.99 or select from 45 different designs. You can give your kids access to each card through parental controls. Users aged 6 to 18 are eligible for the GoHenry debit card.
#18. FamZoo
With FamZoo, parents and children can both keep an eye on spending thanks to a common dashboard. There is a free one-month trial available, and it is available to children of all ages. The subscription price increases to $5.99 per month after the trial period ends, but paying in advance can save you up to $3.49 per month.
Although the membership requirements for 19Boeing Employees’ Credit Union are modest, the credit union is still included on this list due to its outstanding promotional APY. When you open an Early Saver account for yourself and your child, you’ll get a 6.17% APY on the first $500 you deposit. However, any sum greater than that earns a meager 0.50% APY. But in addition to not charging a monthly maintenance fee and not requiring a minimum deposit, Early Saver also has other characteristics of a good savings account. Children aged 17 and under can open a BECU Early Saver Youth Account. The credit union’s top savings option, the Member Advantage account, can be opened once the child reaches the age of 18.
#19. First Internet Bank Tomorrow’s Tycoons
“Tomorrow’s Tycoons” is how First Internet Bank refers to its kids’ savings accounts. The account’s 0.80% APY places it among the best savings rates available for kid-friendly savings accounts. The minimum opening deposit for this account is $100, but there are no ongoing monthly fees for account holders. The maximum number of withdrawals from this account each month is six, just like any savings account. Although your child will be the account’s legal owner, First Internet Bank insists that you be listed as a joint owner with them. A Tomorrow’s Tycoons account is only for your children until they turn 18 years old. The account will change to a Free Savings Account with First Internet Bank once they turn 18 years old. There are no monthly fees, a $25 opening deposit requirement, or an APY of 0.80% for this account right now.
Which Bank Has the Best Kids Account?
It is impossible to select the best kids’ bank to account for everyone, as it is important to find the best one for you and your child. This depends on what you’re looking to get from your account and how you plan to save.No matter what it is that you prioritize, there are a lot of good kids’ bank account options
How Do I Open a Bank Account in My Child’s Name?
The process of opening a savings account for your child is very similar to opening one for yourself. You will require identification as an adult, such as a driver’s license, passport, or other type of government-issued photo ID. Your child’s birthdate, Social Security (or taxpayer identification) numbers, and other basic information must also be provided.
Can a 3-Year-Old Have a Bank Account?
You can probably open a savings account for your child now. Most often, a parent or guardian must share ownership of or control over a child’s savings account. So you can handle the finances until your child is old enough to handle them.
What Age Do Kids Get Bank Accounts?
There is no certain solution to this. However, in general, it is best to introduce kids to personal finance as early as possible. Start slowly if you believe your child might be too young. A savings account that they can watch grow over time sends a positive message, and once you believe they are prepared to handle the responsibility of a debit card, you can set them up with a checking account.
What Is the Best Account to Start for a Baby?
Children’s savings accounts or custodial accounts can both be opened by parents. Your child can take money out of a children’s savings account whenever they want. Contrarily, a custodial account only allows the child to access the money once they turn 18 years old.
Is There an Account for Kids?
The law prohibits minor children from opening a savings account. A custodial or joint account must be opened by a parent or legal guardian. Parents open and manage the account (in trust) on behalf of their children until they reach adulthood. Starting young is the key to instilling in your kids sound financial practices and literacy.
Conclusion
No matter your child’s age—from infancy to adolescence or anywhere in between—you can open a kids’ bank account at any time. According to research, children as young as five can comprehend the idea of saving money. Thus, they will fare better, in the long run, the earlier they can experience the value of saving money firsthand.
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