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Teaching kids about money is one of the most valuable gifts a parent can give — and a savings account is where that education starts. Check out our guide on how to teach kids about money. Research from the University of Kansas found that children with savings accounts in their name are six times more likely to attend college than those without.
But not all kids’ savings accounts are created equal. Some charge monthly fees that eat into small balances, while others offer generous APYs that help kids see their money grow. We’ve compared the best options for every age group, from toddler custodial accounts to teen-friendly banking apps.
Best Savings Accounts for Kids and Teens: Comparison
| Account | APY | Minimum Balance | Monthly Fee | Best For | Ages |
|---|---|---|---|---|---|
| Capital One Kids Savings | 2.50% | $0 | $0 | Young kids (UTMA/UGMA) | Under 18 |
| Alliant Credit Union Kids Savings | 3.10% | $5 | $0 | Best APY for kids | Under 13 |
| Chase First Banking℠ | 0.01% | $0 | $0 | Hands-on parental controls | 6–17 |
| Greenlight (app) | Up to 5% | $0 | $4.99–$14.98/mo | Financial education + debit | All ages |
| Copper Banking (app) | 4.00% | $0 | $0 | Teens wanting independence | 13–17 |
| Fidelity® Youth Account | N/A (brokerage) | $0 | $0 | Teens learning to invest | 13–17 |
| Axos Bank First Savings | 0.10% | $0 | $0 | Fee-free brick-and-mortar | Under 18 |
Detailed Account Reviews
1. Capital One Kids Savings Account — Best for Young Kids
Capital One’s Kids Savings account is a straightforward UTMA/UGMA custodial account that offers a competitive APY with zero fees and no minimum balance. It’s an excellent “set and watch it grow” option for parents saving on behalf of younger children.
Key features:
- 2.50% APY (competitive for a custodial savings account)
- No minimum balance and no monthly fees
- FDIC-insured up to $250,000
- Managed by parent until child reaches age of majority (18 or 21, depending on state)
- Online and mobile access for parents
- Can link to parent’s Capital One accounts for easy transfers
Why it stands out: The combination of competitive APY, zero fees, and Capital One’s user-friendly app makes this the best custodial savings account for younger kids. There’s no minimum deposit to open, so even grandparents can contribute $10 birthday gifts easily.
2. Alliant Credit Union Kids Savings — Best APY for Kids
Alliant offers one of the highest savings rates available for kids under 13, making it the best choice for parents who want maximum growth on their child’s savings.
Key features:
- 3.10% APY (among the highest for kids’ accounts)
- $5 minimum deposit to open
- No monthly fees
- Converts to teen/adult account at age 13
- Anyone can join Alliant through a $5 donation to Foster Care to Success
Why it stands out: A 3.10% APY means a $1,000 deposit earns $31 in the first year — visible, tangible growth that kids can see on their statements. This is powerful for teaching the concept of compound interest.
3. Chase First Banking℠ — Best for Parental Controls
Chase First Banking is designed specifically for kids aged 6-17, connected to a parent’s Chase checking account. It focuses on teaching money management with robust parental oversight.
Key features:
- Debit card for kids with built-in spending controls
- Parents set spending limits, block merchants, and monitor transactions in real-time
- Kids can set savings goals and track progress
- Earn and chore-tracking features
- No monthly fees or minimum balance
- Over 4,700 Chase branches and 16,000 ATMs nationwide
Why it stands out: The parental control features are unmatched among traditional banks. Parents can restrict specific merchant categories (no online gaming purchases, for example), set daily spending limits, and get real-time alerts when the card is used. The physical branch access is also valuable for kids who want to deposit birthday money in person.
Limitation: The APY on the linked savings account is minimal (0.01%), so this works best as a spending/learning tool paired with a higher-yield savings account elsewhere.
4. Greenlight — Best for Financial Education
Greenlight is a comprehensive financial app designed to teach kids about earning, saving, spending, and investing — all under parental supervision.
Key features:
- Debit card + savings + investing in one platform
- Parents set up to 5% “parent-paid interest” to match or incentivize savings
- Savings goals with visual progress tracking
- Chore management and allowance automation
- Stock and ETF investing for teens (with parent approval for each trade)
- Financial literacy lessons built into the app
- Plans: Core ($4.99/mo), Max ($9.98/mo), Infinity ($14.98/mo) for up to 5 kids
Why it stands out: Greenlight turns saving money into an engaging experience. The “parent-paid interest” feature lets you set any interest rate — even 10% or 20% — to supercharge your child’s motivation. The investing feature introduces teens to the stock market with training wheels (parent approval required for each trade).
Consideration: The monthly fee is a drawback compared to free options. However, if you’re already spending money on financial education resources or allowance tracking tools, Greenlight consolidates everything in one place.
5. Copper Banking — Best for Teen Independence
Copper is a banking app designed specifically for teenagers (13–17) who want a more independent financial experience while still having a parental safety net.
Key features:
- 4.00% APY on savings (one of the highest teen rates)
- Debit card with instant spending notifications
- Peer-to-peer payments within the app
- Round-up savings (rounds purchases to next dollar, saves the difference)
- No monthly fees, no minimum balance
- Parent visibility without controlling every transaction
Why it stands out: Copper respects teen autonomy while maintaining appropriate guardrails. Parents can see all transactions and balances but don’t have to approve every purchase — mirroring the trust-building that healthy financial education requires. The 4.00% APY is one of the best available for any age group.
6. Fidelity® Youth Account — Best for Learning to Invest
For teens ready to go beyond saving and explore investing, the Fidelity Youth Account offers a brokerage account in the teen’s own name — a rarity in the financial industry.
Key features:
- Brokerage account in teen’s name (not custodial)
- Trade stocks, ETFs, and Fidelity mutual funds
- Debit card with no foreign transaction fees
- No account minimums or monthly fees
- Cash management earns competitive money market rate
- Parent/guardian must have a Fidelity account and has view-only access
- Educational resources and tools built in
Why it stands out: This is the most powerful financial tool available for teens. While other apps let teens trade with parental approval on each transaction, Fidelity gives teens genuine investment experience — making their own research-based decisions, experiencing market volatility, and building financial literacy that lasts a lifetime.
Types of Kids’ Savings Accounts Explained
Custodial Accounts (UTMA/UGMA)
A custodial account is opened by a parent or guardian on behalf of a minor. The adult manages the account until the child reaches the age of majority (18 or 21, depending on the state). Key things to know:
- The money legally belongs to the child and must be used for their benefit
- Once the child reaches adulthood, they gain full control — you can’t take it back
- Earnings above $2,500/year may be taxed at the parent’s rate (the “kiddie tax”)
- Counts as the child’s asset for financial aid purposes (weighted more heavily than parent assets)
Joint Accounts
Some banks allow parents and children to open joint savings accounts. Both parties have full access and ownership. These are simpler than custodial accounts but offer less legal protection for the child’s funds.
Teen Checking/Savings Combos
Many banks offer combined checking and savings products for teens (typically 13+), linked to a parent’s account. These teach practical money management — budgeting a checking balance, making deposits, and setting savings goals.
529 College Savings Plans
If your primary goal is saving for education, a 529 plan offers tax-advantaged growth specifically for qualified education expenses. Earnings grow tax-free, and withdrawals for education are also tax-free. However, 529s have restrictions: non-education withdrawals incur penalties and taxes.
How to Teach Kids About Saving: Age-by-Age Guide
Ages 3–5: The Basics
- Use a clear piggy bank so they can see money accumulate
- Introduce the concept of “saving up” for a toy they want
- Count coins together and talk about what money is used for
- Open a custodial savings account and show them their balance growing
Ages 6–10: Building Habits
- Start a regular allowance tied to age-appropriate chores
- Introduce the three-jar system: Save, Spend, Give
- Let them make small purchasing decisions and experience buyer’s regret
- Show them their savings account interest: “The bank paid you $2 for keeping your money there!”
- Start discussing wants vs. needs
Ages 11–13: Growing Responsibility
- Give them a debit card with spending limits (Chase First Banking, Greenlight)
- Let them manage a clothing or entertainment budget
- Introduce compound interest using their real account balance
- Start conversations about earning money through extra tasks or small entrepreneurial projects
- Discuss advertising and marketing tactics to build critical consumer awareness
Ages 14–17: Real-World Finance
- Transition to a teen banking app with more independence (Copper, Fidelity)
- Encourage part-time jobs and help them set up direct deposit into savings
- Introduce basic investing concepts (stocks, ETFs, compound growth over decades)
- Discuss credit scores, loans, and how interest works — concepts they’ll encounter soon
- If they’re interested, open a teen investment account and guide them through their first stock purchase
- Help them save for a first car, college expenses, or other significant goals
Tax Considerations for Kids’ Savings Accounts
Interest earned in a child’s savings account may be subject to taxes. Here’s the 2026 breakdown:
| Child’s Unearned Income | Tax Treatment |
|---|---|
| First $1,300 | Tax-free |
| $1,301–$2,600 | Taxed at child’s rate |
| Above $2,600 | Taxed at parent’s marginal rate (“kiddie tax”) |
For most families, this isn’t a concern — a $10,000 savings account at 3% APY earns $300/year, well within the tax-free threshold. But if grandparents or family members have contributed substantially, keep an eye on the total unearned income across all the child’s accounts.
Financial Aid Impact
If college is in your child’s future, be aware that assets in the child’s name (custodial accounts) are weighted more heavily in financial aid formulas than parent-owned assets:
- Parent-owned assets: Assessed at up to 5.64% per year on FAFSA
- Child-owned assets: Assessed at 20% per year on FAFSA
- 529 plans (parent-owned): Treated as parent assets (5.64% rate) — more favorable
This means $10,000 in a custodial account reduces financial aid eligibility by ~$2,000/year, while $10,000 in a parent-owned 529 reduces it by only ~$564/year. For larger savings amounts, a 529 may be more strategic.
FAQ: Kids’ and Teens’ Savings Accounts
What’s the best age to open a savings account for my child?
You can open a custodial savings account at any age — even for a newborn. We recommend opening one as early as possible to maximize compound growth and to create opportunities for financial education as the child grows. A $1,000 deposit at birth earning 3% APY grows to over $1,700 by age 18 with zero additional contributions.
Can my child access the money in a custodial account?
Not until they reach the age of majority (18 or 21, depending on your state). Until then, the custodian (usually a parent) manages the account and can make withdrawals — but only for the benefit of the child. Once the child reaches adulthood, they gain full control.
Should I choose a custodial account or a joint account?
Custodial accounts provide legal protection for the child’s funds and keep them separate from your assets. Joint accounts are simpler but give both parties equal access. For larger amounts or long-term savings, custodial accounts are generally better. For everyday money management learning, a joint or linked account works well.
Are kids’ savings accounts FDIC-insured?
Yes, if the account is at an FDIC-member bank, it’s insured up to $250,000 per depositor. Custodial accounts held for the benefit of a minor are insured separately from the parent’s own accounts at the same bank.
What about online-only banks for kids’ accounts?
Online banks typically offer higher APYs than traditional banks (2–4% vs. 0.01–0.10%). The tradeoff is no physical branches, which means your child can’t deposit cash in person. For most families, the higher APY is worth it, especially if paired with a traditional bank account or debit card for everyday transactions. Compare options in our best online banks guide.
How much should I save for my child?
There’s no perfect answer, but common approaches include:
- Birthday/holiday money: Save at least 50% of monetary gifts
- Regular contributions: Even $25–$50/month adds up ($5,400–$10,800 over 18 years, plus interest)
- Match their savings: When your child earns or saves money, match a percentage (50% or 100%) to incentivize the habit
Bottom Line
The best savings account for your child depends on their age and your family’s priorities. For young children, a custodial savings account with a high APY (like Capital One or Alliant) maximizes growth while you maintain control. For tweens and teens, an app-based platform (like Greenlight, Copper, or Chase First Banking) adds debit cards, spending controls, and real-world financial experience.
Whatever you choose, the most important thing is to start. Every dollar saved teaches your child that money is a tool — one they can learn to use wisely long before adulthood.
Last updated: May 2026. APYs and account features are subject to change. Always verify current offers on the provider’s website.