The 7 Best Savings Accounts for Kids of 2022

A savings account is a great way for kids to start learning about money management, especially when banks offer them with low or no fees.
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Do you remember how old you were when you had your first bank account? I opened my first account alongside my mom (who was listed as the joint owner) at a nearby credit union when I was in the third grade. For years, that account served as a savings vehicle where I put money from holidays, eighth-grade graduation and — at 15 years old  — my first job.

That’s actually not too outside the norm: In 2020, 49% — nearly half — of American children had a savings account, according to Statista.

And money management should start early for kids. Parents should make trips to the bank with them — and make them a big deal — beginning around age 6. You can help them open a savings account, and use that experience to introduce different money concepts, like how they’ll earn interest by leaving their money in the bank.

Good news: Many big-name banks offer accounts for minors, and lots of them are low- or no-fee. Here’s what you need to know about the best savings accounts for kids and other bank products.

Why You Should Open a Bank Account for a Minor

It may be tempting to hold on to your children’s money for them in your own savings account or let them keep it in a piggy bank. But it’s a good idea to open a bank account for them for several reasons.

Opening a bank account can:

  1. Help kids learn the value of money, from saving to spending it.
  2. Help them understand compound interest and how it makes their money grow.
  3. Help them learn to delay instant gratification by saving toward a goal.

Opening an account is also a great way to teach, or reinforce, good budgeting habits. Your child can start learning about saving for college, put money in a high-yield savings account or create a sinking fund (typically, money outside of a traditional savings account or emergency fund) for a summer vacation. By starting early, they’ll have a better understanding of how money can be a tool to help them achieve their goals and learn about financial responsibility.

How to Open a Bank Account for Someone Under 18

While a minor can have a bank account in their name, an adult must open the account. So, a parent or guardian can open a joint checking or savings account with their child, thereby becoming the joint account holder. An immediate family member other than a parent or guardian, like an older sibling, can usually open an account with a minor, too.

Some accounts cater to young children, while others focus on teens. Different banks and states may also have rules about the age of a minor on an account, so you’ll want to do your due diligence.=

For the most part, you can open accounts online or in person. Bank requirements will vary, but you typically need:

  • Your child’s Social Security Number (SSN).
  • Their passport or birth certificate.
  • Your (the parent or guardian) own identifying information.

What You Should Look for in Savings Accounts for Minors

Before deciding on an account, you’ll want to consider the following and make a checklist of the most important features for you and your family:

  • Is there a minimum deposit required?
  • Is there a monthly fee?
  • What’s the annual percentage yield (APY) of an account?
  • Is there a daily balance requirement?
  • Is there a service fee?

And some additional questions you may want to consider:

  • Do you get a free debit account?
  • Is there a mobile banking app?
  • Are there add-ons — financial education materials, the opportunity to meet with a financial advisor etc. — available?

Other features may be important to you — say, the ability to transfer money into your child’s account as often as you want. Or the ability to have multiple accounts within the bank or credit union to take advantage of more than just a checking or savings account.

Keep in mind that if a brick-and-mortar bank isn’t for you and your kid, an online bank or other financial institution is worth looking into for an account. For this assessment, we focused on large banks with physical locations who also have strong online offerings and mobile apps.

7 of the Best Savings Accounts for Kids

Bank Min. Initial Deposit Min. Daily or Avg. Monthly Balance Monthly Service Fee APY
Bank of America Advantage Savings Account $100 n/a $0 if you’re younger than 18 0.01%
Chase Savings Account $0 n/a $0 if you’re younger than 18 n/a
PNC Bank “S” is for Savings Account $0 $300 average monthly balance $0 or $5 0.01%
Wells Fargo Way2Save Savings Account $25 $300 minimum daily balance $0 or $5 0.01%
TD Simple Savings Account $0 $0 if you’re younger than 18 $0 if you’re younger than 18 0.02%
Capital One Kids Savings Account $0 n/a n/a 0.30%
Alliant Credit Union Kids Savings Account $5 (Alliant will cover) $100 average daily balance to earn interest $0 (if you choose e-statements) 0.60%

Bank of America Advantage Savings

Best for Easy Account Access

3.5 out of 5 Overall

Key Features
  • 24/7 access online
  • $100 required opening deposit
  • ots of branches and ATMs around the U.S.
Bank of America is a well-known investment bank and financial services holding company. BofA exists outside of the U.S. — it’s the second-largest bank in the world — and has 4,600 branches and over 16,000 ATMs. On top of checking and savings accounts, Bank of America offers a host of financial products such as auto loans, credit cards and IRAs.
Bank of America Advantage Savings

APY
0.01%
Opening balance required
$100
Monthly maintenance fee
$8/month (can be waived)
Mobile app
Yes

More Information About Bank of America Advantage Savings

BofA used to have a couple of account options set up for minors, but has seemingly rolled them into a general savings account. Just about anyone can open a Bank of America Advantage Savings account, but there are special considerations for the under-18 crowd. For example, the monthly fee is waived if the account holder is a minor. If you’re looking for a checking account — and you’re a student under 25 — Bank of America also offers an Advantage SafeBalance Banking account with no monthly or overdraft fees.

Chase Savings Account

Best for Physical Branches

3.5 out of 5 Overall

Key Features
  • Companion checking account for minors
  • Autosave feature through Chase checking
  • 5,000 branches
JP Morgan Chase Bank, typically referred to as just Chase or Chase Bank, is one of the “big four banks” in the U.S. The financial giant has over 5,000 physical branches and around 16,000 ATMs in the country. Founded more than 200 years ago, today, Chase is one of the biggest banks worldwide and has a variety of banking services.
Chase Savings Account

APY
n/a
Opening balance required
$0
Monthly maintenance fee
$5/month (can be waived)
Mobile app
Yes

More Information About Chase Savings

While the Chase Savings account is relatively low-frills (no interest is a bummer, for sure), Chase has a large number of brick-and-mortar branches and ATMs for members who prefer easy access to their money and in-person support. Looking for other minor-friendly banking options? Chase also has a fee-free debit card for kids. Additionally, if your minor is at least 17 and heading to college, Chase is offering a $100 bonus for opening a new Chase College Checking account. Your teen can redeem the offer online and they’ll receive the money after following a couple of easy steps. (Psst, mom and dad — this is another teachable moment for your teens since they have to be organized and follow the required steps to earn this money.)

PNC Bank “S” is for Savings

Best for Financial Literacy

4 out of 5 Overall

Key Features
  • A particularly kid-friendly account
  • Interest on balances as low as $1
  • Offers an interactive online experience
PNC is a bank and financial services company based in Pittsburgh, PA. It was founded over 170 years ago and has nearly 2,700 locations throughout the U.S. Whether you want to take out a student loan or manage your financial life through its Virtual Wallet account, PNC offers a number of different services for its members.
PNC Bank “S” is for Savings

APY
0.01%
Opening balance required
$0
Monthly maintenance fee
$5/month (can be waived)
Mobile app
Yes

More Information About PNC Bank ‘S’ Account

This PNC savings account aims to help children learn about finances through its interactive online platform. The “Sesame Street”-themed learning center is an interactive experience for kids, who can learn about goal-setting; saving, sharing and spending; and even receive money tips from Elmo and gang.

Wells Fargo Way2Save Savings

Best for Fee-Free Banking

3 out of 5 Overall

Key Features
  • You can set up automatic transfers
  • No monthly fee for members under 24
  • Approximately 12,000 ATMs
Wells Fargo is another large financial services company with locations around the globe (in 35 countries, to be exact). Founded over 90 years ago, Wells Fargo has over 5,000 retail branches and 13,000 ATMs. The institution offers a variety of banking services and products for members to manage money.
Wells Fargo Way2Save Savings

APY
0.01%
Opening balance required
$25
Monthly maintenance fee
$5/month (can be waived)
Mobile app
Yes

More Information about Wells Fargo Way2Save Account

The Way2Save Savings account offers free online transfers between Wells Fargo accounts and free online statements to help teach minors about money management. Unlike some savings accounts for minors that charge a monthly fee once a member turns 18, this account waives fees for those 24 and younger — one less thing to worry about paying for.

TD Simple Savings

Best for No Minimum Balance Requirements

4 out of 5 Overall

Key Features
  • No fee or daily balance requirement
  • Companion checking account
  • Bonus for checking account users
TD Bank has many branches in states in the northeast and on the east coast. With roughly 1,200 locations, TD Bank offers loans, various types of bank accounts, small business banking and more. The chain also offers mobile and online banking, and typically has new-member monetary bonuses.
TD Simple Savings

APY
0.02%
Opening balance required
$0
Monthly maintenance fee
$5/month (can be waived)
Mobile app
yes

More Information About TD Simple Savings

The TD Simple Savings account waives monthly maintenance fees and the daily minimum balance requirement for all savers 18 and under. Members can take advantage of instant-issue debit cards, and TD also offers a number of online guides for personal finance education. Need a checking account, too? Right now, the TD Convenience Checking account is offering new members a $150 bonus when they follow certain guidelines.

Capital One Kids Savings

Best for Fee-Free, Interest-Earning Saving

4.5 out of 5 Overall

Key Features
  • Top-rated app
  • High APY
  • 70,000 ATMs
Capital One is a bank holding company that offers everything from credit cards to savings accounts. Beyond commercial and consumer banking, Capital One does a lot of business with its credit card division (you’ve likely seen commercials with celebrities promoting these popular cards). Capital One boasts over 700 branch locations and 70K ATMs nationwide.
Capital One Kids Savings

APY
0.30%
Opening balance required
$0
Monthly maintenance fee
$0
Mobile app
Yes

More Information About Capital One Kids Savings

This straightforward, no-fee account from Capital One offers a solid 0.30% APY. You can establish automatic savings plans and savings goals so your kids can watch their balance grow — fee-free. Teens will also appreciate its easy-to-use mobile app and tons of ATM access.

Alliant Kids Savings Account

Best for High APY

4 out of 5 Overall

Key Features
  • APY 12x higher than most competitors
  • Geared toward kids under 13
  • Alliant will cover required opening balance
Alliant is a credit union based out of Chicago. While located in Illinois, prospective members across the U.S. can join if they meet certain requirements (such as being a member of a qualifying organization or related to a current member). Alliant Credit Union offers 24/7 account services, and has checking and savings accounts, auto loans and more.
Alliant Kids Savings Account

APY
0.60%
Opening balance required
$5 (Alliant will cover it)
Monthly maintenance fee
$0 (if you choose e-statements)
Mobile app
Yes

More Information About Alliant Savings

The Alliant Kids Savings Account offers an APY 12x higher than most banks, so your child will earn some extra money on their savings in no time. While there are fees associated with the account, they’re easy enough to avoid. And once your child turns 13, they can move to an Alliant High-Rate Savings account to continue saving.

Check Out Your Local Credit Union

It’s always worth checking in on your neighborhood credit union to see what, if anything, they offer in terms of a youth savings account . Or, they may be able to offer more personalized service, an account with a higher APY or other perks.

A quick note: There are money accounts for children outside of traditional bank accounts that are known as UTMAs, which stands for Uniform Transfers to Minors Act. In these types of accounts, gifts of high value (money, real estate, etc.) “can be transferred to a custodian for the benefit of a minor,” according to the U.S. Social Security Administration, until the child becomes a legal adult. The savings are tax-free for the minor until they assume the account. But the assets are considered part of the custodian’s estate and are taxed accordingly.

Roth IRAs, Uniform Gifts to Minors Act (UGMA) and 529 College Savings Plans are other examples of savings vehicles for the under-18 set.

Pro Tip

Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

Frequently Asked Questions (FAQs) About Savings Accounts for Kids

We know you have a lot of questions about savings accounts for kids. We’ve rounded up the answers to some of the most commonly asked questions.

What’s the Youngest Age a Child Can Be to Have a Bank Account?

You have to be 18 to open a bank account on your own. However, a parent or guardian can open an account for their child at any age if they choose to have their name on it and help manage (or jointly own) the account. Sometimes an older sibling can be a joint owner of an account for a younger sibling, too.

If you’re under 18 or shopping around for an account for a minor, make sure to look for bank accounts that cater to children. A variety of big and small banks have accounts that offer special incentives for the under-18 crowd, such as targeted educational material or a reprieve from monthly fees, usually for kids 17 and younger. However, some institutions extend these incentives until a member has graduated from college.

What Are the Best Savings Accounts for Kids?

Capital One offers a comprehensive savings account for minors — decent APY, no fees, etc. But ultimately, the best savings account for kids will be any account that lets them save money for low or no fees. From there, you can seek out specifics that will help them meet their savings goals.

The best children’s savings account will depend on several factors. For instance, your kid might respond best to a teen checking and savings account that offers a mobile app and online banking. Or, they might prefer an account with a competitive interest rate, even if it means they have to adhere to a particular average monthly balance to earn it.

What is the Best Kind of Account to Open for a Child?

Look for a savings account with low or no fees, that has savings tools and that offers opportunities to open other banking products (like a checking account) for further saving and earning. And don’t forget, you can always switch accounts: If one falls out of favor with you or your child, it can pay (quite literally) to open an account elsewhere.

There are a few items you want to prioritize when shopping around for a kid’s savings account for children. For instance, a bank account that requires a high minimum balance or charges a two-digit monthly fee, likely wouldn’t be ideal. Especially for a child who might be opening their first account with the proceeds of a lemonade stand or some birthday cash — money that isn’t regularly coming in.

Contributor Kathleen Garvin (@itskgarvin) is a personal finance writer based in St. Petersburg, Florida, and former editor and marketer at The Penny Hoarder. She owns a content-writing business and her work has appeared in U.S. News, Clark.com and Well Kept Wallet.