Best savings accounts for kids: top high-yield picks, reviews, and how to choose

The right savings account can do more than hold a child's money — it can grow it faster, build lifelong habits, and help you avoid costly tax and financial-aid missteps. Kids who practice saving early are 40% more likely to save as adults, underscoring the long-term impact of starting now according to research from the Federal Reserve.

This guide covers our top recommendations for the best savings accounts for kids, provides high interest kids savings account reviews, and compares the best options to save for kids depending on your goals: short-term cash goals, college, long-term investing, or allowance management.

Why choosing wisely matters: Strong APYs and low fees accelerate compounding over time. Smart account types can reduce taxes under the "kiddie tax" rules, which tax a child's unearned income above thresholds at the parent's rate according to the IRS. And FDIC/NCUA insurance protects eligible deposits up to legal limits as outlined by the FDIC.

This guide is for parents, grandparents, guardians, and anyone saving for a child. After reading, you'll be able to compare accounts side-by-side, pick the right account type, open and set up an account, and maximize returns and learning opportunities.

Editorial and affiliate disclosure: We may earn a commission if you open an account through our links. Our reviews are independent and commissions do not influence our ratings or picks.

Quick answers — top picks for best savings accounts for kids

Our selection criteria: Highest APY, low or no fees and minimums, age and ownership fit, strong parental controls, easy mobile tools, and FDIC/NCUA insurance protection.

Top picks (verify APYs at publication as rates change frequently):

• Best high-yield credit union pick: BECU Early Saver — Great for maximizing interest with no minimums; reported 5.38% APY; NCUA insured. Source: NerdWallet
• Best all-around credit union: Alliant Credit Union Kids Savings — Strong parental controls, no monthly fees; reported 3.10% APY with $100 minimum balance. Source: Bankrate
• Best big-bank simplicity: Capital One Kids Savings — No fees or minimums, automatic savings tools; reported 2.50% APY. Source: SmartAsset
• Best starter yield plus oversight: Service Credit Union Primary Savings — Robust parental oversight; reported 5.00% APY, no minimum balance. Source: NerdWallet
• Best easy-to-start online option: First Tech FCU Start Up Savings — Low minimum (just $0.01), no monthly fees; reported 4.00% APY. Source: NerdWallet

How we selected and reviewed accounts

We evaluated each account across multiple criteria to identify the best savings accounts for kids:

Key evaluation factors:

• APY and interest rate compounding
• Fees and minimum balance requirements
• Age restrictions and ownership type (custodial UGMA/UTMA vs joint vs minor-linked accounts)
• Parental controls and allowance features
• Online and mobile experience and ease of opening
• FDIC/NCUA insurance coverage per FDIC guidelines
• Transferability to adult ownership, educational tools, customer service quality

Our process: We analyzed publicly available provider disclosures and aggregated rankings from reputable financial sources. We weighted APY and fees most heavily for savings accounts, and features and controls for kid-focused apps.

Data freshness note: APYs and fees change frequently. Always verify current APYs and terms with the provider on the day of publication and before opening any account.

Disclosure: Some providers are our affiliates. Our recommendations are based on objective criteria and affiliate status does not affect our rankings.

High interest kids savings account reviews

How to use these reviews: Skim the one-line summary, then check APY, fees, ownership type, and parental controls to confirm a fit. Always verify the live APY before opening any account.

BECU Early Saver

Summary: Best for high-yield savers who want no minimums at a credit union

APY, fees, minimum: Reported 5.38% APY with no minimum deposit required

Ownership type: Minor account (credit union membership required)

Key features: Mobile app access, easy transfers, NCUA insured protection

Pros:

• High APY among kids' accounts
• No minimum balance requirement
• Reputable credit union with strong member service

Cons:

• Regional membership criteria may limit eligibility
• Limited physical branch locations
• APY subject to change

Best use case: Short-to-medium-term goals where yield matters most and you meet membership requirements.

Quick verdict: A standout high-yield pick if you're eligible for BECU membership.

Source: NerdWallet

Alliant Credit Union Kids Savings

Summary: Best for low-cost saving with solid parental tools

APY, fees, minimum: Reported 3.10% APY with $100 minimum balance and no monthly fees

Ownership type: Minor account at a credit union

Key features: Parental controls, mobile banking tools, NCUA insured

Pros:

• Competitive APY for a kids' account
• No monthly maintenance fees
• Strong mobile app with parental oversight

Cons:

• Credit union membership requirements
• APY can change with market conditions
• Higher minimum than some competitors

Best use case: Everyday saving with good oversight features for active parents.

Quick verdict: A great balance of yield and features for families who qualify.

Source: Bankrate

Capital One Kids Savings

Summary: Best for fee-free simplicity at a national brand

APY, fees, minimum: Reported 2.50% APY with no fees and no minimum deposit

Ownership type: Minor-linked savings account

Key features: Automatic savings plans, goal setting tools

Pros:

• No fees or minimum requirements
• Easy to open online nationwide
• Solid mobile app experience

Cons:

• APY trails top credit union options
• No local credit union member perks
• Limited educational features

Best use case: Hassle-free starter savings for families who want simplicity.

Quick verdict: A simple, reliable option for most families getting started.

Source: SmartAsset

Service Credit Union Primary Savings

Summary: Best for strong APY plus robust parental oversight

APY, fees, minimum: Reported 5.00% APY with no minimum balance requirement

Ownership type: Minor account at a credit union

Key features: Parental controls, mobile banking, NCUA insured

Pros:

• Very competitive APY rate
• No minimum balance to start
• Strong oversight and control tools

Cons:

• Membership eligibility requirements
• Potential rate caps or tiers on high balances
• Limited to credit union members only

Best use case: Growing short-term funds quickly with strong parental involvement.

Quick verdict: A top contender if you qualify for Service Credit Union membership.

Source: NerdWallet

First Tech FCU Start Up Savings

Summary: Best for easy entry with meaningful yield

APY, fees, minimum: Reported 4.00% APY with $0.01 minimum and no monthly fees

Ownership type: Minor account at a credit union

Key features: Mobile app access, NCUA insured

Pros:

• Ultra-low minimum deposit
• Strong APY for a starter account
• No monthly maintenance fees

Cons:

• Credit union membership criteria apply
• Rate tiers may apply to higher balances
• Limited branch network

Best use case: Starting small and building consistent saving habits over time.

Quick verdict: Great for first-time savers who want yield without hurdles.

Source: NerdWallet

PNC S is for Savings

Summary: Best for young kids learning via Sesame Street-themed tools

APY, fees, minimum: APY varies by location, $0 minimum if opened online (verify current terms)

Ownership type: Minor-linked account

Key features: Educational dashboard, goal setting with Sesame Street characters

Pros:

• Kid-friendly educational content
• Trusted national bank brand
• No minimum if opened online

Cons:

• APY may trail online and credit union options
• Potential regional limitations on features
• Educational focus may not suit older kids

Best use case: Teaching basics to young children with a recognizable, fun brand.

Quick verdict: Ideal for early learners, consider pairing with a high-yield option for better returns.

Source: Bankrate

Greenlight

Summary: Best for teaching money management with robust parental controls

APY, fees, minimum: Monthly subscription fee, savings features and up to 5% back to savings (verify current terms), FDIC insurance via partner banks

Ownership type: Parent-managed app for minors

Key features: Chores tracking, spending controls, savings goals, gift links

Pros:

• Comprehensive educational tools
• Strong parental controls and oversight
• Gift links for family contributions

Cons:

• Monthly subscription fee required
• Not a traditional high-yield savings account
• More complex than simple savings

Best use case: Everyday money skills and allowance management alongside other savings.

Quick verdict: Pair with a high-yield savings account for comprehensive money education.

Source: WallStreetZen

Account comparison summary

High-yield leaders:

• BECU Early Saver: 5.38% APY, no minimum
• Service Credit Union Primary Savings: 5.00% APY, no minimum
• First Tech FCU Start Up Savings: 4.00% APY, $0.01 minimum

Best for beginners:

• Capital One Kids Savings: 2.50% APY, no fees or minimums
• PNC S is for Savings: Variable APY, educational focus

Most comprehensive:

• Alliant Credit Union Kids Savings: 3.10% APY with controls
• Greenlight: Education app with savings features

Insurance status: All traditional bank accounts listed are FDIC insured, credit union accounts are NCUA insured per FDIC protection guidelines.

Best options to save for kids — account types compared

"Best" depends on your time horizon, tax situation, and whether your priority is growth, flexibility, or teaching habits. For custodial rules and kiddie tax thresholds, see the IRS guidance. For safety, confirm FDIC/NCUA insurance on deposit accounts through the FDIC.

Traditional kids savings accounts

How they work: Parent-owned or joint/minor-linked accounts with the child as beneficiary or joint owner (varies by bank).

Typical APY range: Often lower than online banks, verify current rates on provider websites.

Pros: Simple structure, safe and easy to explain, branch support available, FDIC/NCUA insurance protection.

Cons: Lower yields compared to online options, limited features at some traditional banks.

Example: PNC S is for Savings offers Sesame Street educational tools and $0 minimum if opened online per Bankrate.

Best for: Short-term goals and teaching basic financial concepts to young children.

High-yield online savings accounts for kids

Benefits: Higher APYs than traditional banks, low or no fees, excellent mobile tools and apps.

Trade-offs: No physical branches for in-person service, membership rules may apply at some credit unions.

Examples: First Tech FCU Start Up Savings reported 4.00% APY with $0.01 minimum per NerdWallet. Service Credit Union Primary Savings reported 5.00% APY also per NerdWallet.

Best for: Maximizing interest earnings for short-to-medium-term savings goals.

Custodial accounts (UGMA/UTMA)

What they are: Parent or guardian controls assets for the child until age of majority (18-21 by state). Funds must be used for the child's benefit and ownership transfers upon majority according to IRS rules.

Tax considerations: Unearned income above thresholds may be taxed at the parent's rate under kiddie tax rules per the IRS.

Best for: Flexible long-term savings and receiving gifts from family members.

529 college savings plans

Overview: Tax-advantaged accounts specifically for qualified education expenses. State-specific plans offer different benefits and investment options. Penalties apply for non-qualified withdrawals.

Best for: College-specific savings with significant tax advantages and long time horizons.

Coverdell Education Savings Accounts (ESAs)

Overview: Tax-advantaged accounts for K-12 and college expenses. Annual contribution limits apply and income phaseouts may restrict eligibility.

Best for: Families targeting K-12 private school expenses plus college with smaller annual contributions.

Custodial brokerage and investment accounts

Overview: Invest in stocks, bonds, ETFs for potential higher long-term returns alongside market risk. Ownership transfers at age of majority per IRS custodial rules.

Best for: Long-term growth objectives and teaching investing principles to older children.

Roth IRA for kids

Requirements: Child must have earned income from work. Contributions grow tax-advantaged with specific withdrawal rules applying.

Best for: Teens with earned income and very long investment time horizons (retirement savings).

Allowance and chore apps with prepaid debit cards

Overview: Not traditional deposit accounts but powerful for behavior modification and budgeting skills. Strong parental controls typically included but monthly fees apply.

Example: Greenlight offers chores tracking and savings features with FDIC insurance via partner banks per WallStreetZen.

Best for: Teaching daily money management skills and spending control alongside savings accounts.

Bonds and CDs for kids

Overview: Safe investments with fixed returns. CDs require locking funds for specific terms. Government and corporate bonds vary by type and risk level.

Best for: Guaranteed returns and meeting specific savings goals with known timelines.

Which option should you choose? Decision guide with scenarios

Start with your goal, time horizon, and desired teaching outcomes. Early savings habits create lasting impact: kids who learn saving early are more likely to become adult savers according to Federal Reserve research.

Common scenarios and best matches:

Maximum safety for short-term goals (vacation or first car in 1-3 years): High-yield kids savings at a bank or credit union with FDIC/NCUA insurance per FDIC guidelines.

College savings with tax advantages: 529 plan or Coverdell ESA for tax-advantaged growth. Consider plan rules and qualified expense definitions.

Long-term growth plus investment education: Custodial brokerage account for market exposure. If the child has earned income, consider a Roth IRA for very long-term goals.

Daily money skills plus allowance management: Allowance app or prepaid debit card paired with a high-yield savings account for comprehensive learning.

Gifts from family that stay flexible: Custodial UGMA/UTMA account, but note kiddie tax considerations per IRS Topic 553.

Quick decision checklist:

• Time horizon and liquidity needs
• Risk tolerance and return expectations
• Tax impact (kiddie tax rules, 529/ESA benefits)
• Control and ownership preferences with age of transfer (UGMA/UTMA)
• Financial aid considerations (asset ownership affects aid calculations)

How to open and set up the best savings accounts for kids

Documents typically needed: Child's Social Security Number, birth certificate, parent or guardian ID, proof of address, beneficiary information if applicable.

Step-by-step process:

• Choose the account type aligned with your goal and timeline using our decision guide above.
• Compare current offerings by checking live APYs, fees, and features across your finalists. Verify rates on provider websites since our reviews show reported rates that change frequently.
• Gather required documents and open online or visit a branch. Confirm FDIC/NCUA insurance coverage per FDIC resources.
• Fund the initial deposit and set up automatic transfers from your account plus goal "buckets" or categories if available.
• If opening a custodial account: Understand control rules and age of transfer requirements for UGMA/UTMA accounts per IRS guidelines.

Involve your child: Name specific savings goals together, schedule regular deposit "rituals," and review monthly statements to demonstrate how compounding works over time.

Security measures: Enable two-factor authentication where available, set account alerts, and monitor transactions regularly for any unauthorized activity.

How to maximize returns and build saving habits

Automation strategies: Set up automatic transfers from your checking account. Route a percentage of allowance money or part-time job earnings directly to savings.

Incentive programs: Offer a parent "match" program to incentivize consistent saving behavior, similar to employer 401k matching.

Rate optimization: Review APYs quarterly across providers. Move savings to higher-yield options when the difference justifies the effort and any account switching costs.

Balancing growth and safety: Use high-yield savings accounts for near-term goals and custodial brokerage accounts for long-term growth. Be mindful of kiddie tax rules on investment income per IRS Topic 553.

Teaching strategies: Make savings goals visible through charts or apps, gamify progress with milestones, and hold regular family money check-ins. Early financial education creates lifelong saving behavior according to Federal Reserve research.

Common questions about kids' savings accounts

What is the best kids' savings account for high interest?

Interest rates change frequently, but credit unions often lead on APY. Recent standouts include BECU Early Saver and Service Credit Union Primary Savings, but always verify current rates before opening any account. Sources: NerdWallet, Bankrate.

Are kids' savings accounts FDIC insured?

Yes, eligible deposits at FDIC-insured banks and NCUA-insured credit unions are protected up to legal limits per depositor, per institution, per ownership category. Always confirm your bank's insurance status and how accounts are titled per FDIC guidelines.

What's the difference between a custodial account and a joint savings account?

Custodial (UGMA/UTMA) accounts are legally owned by the child and controlled by an adult until age of majority. Assets must benefit the child and transfer at majority age. Joint/minor-linked savings accounts typically remain parent-owned with the child as joint owner or beneficiary, offering parents more ongoing control per IRS custodial rules.

Will money in a child's account affect financial aid?

It can impact aid calculations. Assets in a child's name (like custodial accounts) may be assessed more heavily than parent-owned accounts under standard financial aid formulas. Consider account ownership type as part of your overall college funding strategy and consult current aid guidelines.

Can kids withdraw money from a custodial account?

Withdrawals must be for the child's benefit, and the custodian maintains control until the account transfers at age of majority according to state rules. The custodian has fiduciary responsibility per IRS Topic 553.

What is the minimum age to open a savings account for a child?

Banks typically allow minor-linked accounts from birth with a parent or guardian as joint owner or custodian. Specific age requirements vary by institution, so check provider terms before applying.

How do 529 plans compare to custodial accounts?

529 plans are tax-advantaged specifically for qualified education expenses with potential state tax benefits. Custodial accounts offer more flexibility (any child benefit) but may negatively impact financial aid and face kiddie tax on unearned income above thresholds per IRS guidelines.

Are allowance apps better than a savings account?

They serve different purposes. Apps like Greenlight teach budgeting and spending with strong parental controls, while high-yield savings accounts maximize safe interest earnings on cash. Many families use both approaches together per WallStreetZen analysis.

How often should I move a child's money from savings to investment accounts?

Review quarterly based on goals and balances. Keep near-term goal money in savings accounts. Consider moving excess funds toward long-term investments in custodial brokerage accounts or Roth IRAs (if the child has earned income), while being mindful of tax implications per IRS rules.

How do taxes work on interest earned in kids' accounts?

Interest earnings count as unearned income. Amounts above annual thresholds may be taxed at the parent's rate under kiddie tax rules. Track interest earnings and file taxes appropriately since thresholds change year to year. Verify current rules with IRS Topic 553.

Resources and tools

Related topics to explore:

• How to start a 529 college savings plan
• Best apps to teach kids about money management
• UGMA vs UTMA custodial accounts explained

External resources:

• IRS Topic 553 - Kiddie tax rules and UGMA/UTMA custodial accounts
• FDIC Deposit Insurance - Protection coverage overview
• NerdWallet Kids' Savings Guide - Account comparisons
• Bankrate Kids' Savings Roundup - Additional reviews

Planning tools:

• Savings growth calculator (compare compounding at different APYs over time)
• Account comparison worksheet with current provider rates
• Goal-setting templates for different savings objectives

Conclusion

The best savings accounts for kids depend on your specific goals and timeline. For short-term objectives, a high-yield savings account at an FDIC/NCUA-insured institution offers the ideal combination of safety and returns. For long-term and college planning, consider pairing custodial or 529 accounts with consistent contributions. For everyday money skills, an allowance app works well alongside a traditional savings account.

Remember that early financial habits create lasting impact. Kids who learn to save young are significantly more likely to save as adults according to Federal Reserve research. Starting with any account is better than waiting for the perfect option.

The best options to save for kids combine competitive rates, low fees, appropriate oversight features, and educational value. Whether you choose a credit union with top APYs or a traditional bank with strong educational tools, the key is getting started and building consistent habits.

Ready to open an account? Compare current rates in our reviews above and choose the option that best matches your family's goals and timeline. Your child's financial future starts with the decision you make today.