Best Savings Account For Kids & Minors Under 18

A kids’ savings account is a new trend and for a reason. Young children can learn the value of saving for the future and the impact of compound interest with the help of these bank accounts. However, it’s crucial to do your homework on the best savings account for kids, choose your savings goals, and compare rates before opening a savings account for your kid.

Now the next question comes to mind regarding newborn bank account is when could be the right time to open a savings account for your kids or grandkids for that matter, and well, it’s never too soon and it’s never too late. The ideal time would be when your kid reaches an age where he gets an idea of what savings means.

If you’re looking to find how to open a savings account for a child, we will give you a lowdown on the best savings accounts for your little ones.

So, buckle up as we take you through this important financial adventure for your kiddos and grandkids. Let’s secure their future, one penny at a time!

How to Choose the Best Savings Accounts For Your Son, Daughter, and Grandchild

First of all, you need to take under consideration a few factors:

  • Consider the age limit of the account—some are designed for minors, others for teens, and some special accounts even cater to newborns or babies.
  • Check the minimum balance requirement and ensure it’s something you can maintain. Additionally, understand the potential fees associated with each account.
  • Look for an account that allows both a parent and a child to access the fund, teaching them about money management. Consider the growth potential of the account, focusing on those that offer a competitive interest rate.
  • Other special features like digital tools for tracking savings, educational resources can also be beneficial.

The pros of such accounts include teaching financial responsibility and providing a nest egg for the future. But, the cons might include potential fees and the need to manage another account.

Best Savings Accounts for Kids 2023

SoFi Savings Account

The SoFi savings account gives you a great interest rate, especially if you have direct deposits coming into the account. Currently, they’re even offering a cash bonus when you open a new account and set up direct deposit.

You can’t directly take money out from your savings account at an ATM. However, SoFi requires that you have both a checking and savings account, and you can move money from savings for baby to checking to then withdraw it from an ATM. They don’t charge for monthly maintenance, overdrafts, or require a minimum balance which is a plus.


  • Good interest rate, especially with direct deposits.
  • No fees or minimum balance required.
  • No overdraft fees.
  • No insufficient funds fee.
  • No monthly maintenance fees.
  • No out-of-network ATM fee.
  • No excessive transaction fees.


  • No single savings account without a checking account.
  • Overdraft coverage applies on a direct deposit of $1,000 or above.

Best Saving Accounts for Kids Overall

Ally Savings Account

The Ally savings account is a strong contender if you’re after a high-yield bank of America kids savings account. It may not always have the absolute highest APY (annual percentage yield) out there, but it’s always near the top. Currently, it’s offering a solid 4.00% APY.

Plus, it doesn’t come with annoying monthly service fees. They usually charge a fee if you make more than six transactions from the savings account in a month, but they’ve been waiving that ever since the COVID-19 pandemic hit.

No out-of-network ATM fees, and they’ll even refund you up to $10 a month for other ATM owners’ fees. Their mobile app is highly rated on iOS and okay on Google Play.

One standout feature is their “buckets”. It’s like having multiple mini savings accounts within your main account, each for different goals and kids would really enjoy the concept. Plus, they give you personalized recommendations to help you save based on your finances.


  • It offers a competitive APY across all balances.
  • No monthly fees or minimum balance required.
  • Cool feature to help you save for different goals.


  • You can’t deposit cash.
  • There’s typically a fee if you make more than six transactions a month, although they’re currently waiving it.

Best Bank Accounts for Minors

M&T Bank Savings Account

M&T Bank offers a basic bank account for minors called the Starter Savings Account. Several automated saving and budgeting features are available through the Starter Savings Account. You can open an M&T Bank Starter Savings Account in branch, online, or with the mobile app.


  • Provides access to pre-set savings tools.
  • Varied access to children under parent’s supervision.
  • Includes a debit card good at 1,800 different ATM locations.


  • Average interest rate.
  • We only cover a small area.
  • A branch visit is required to open an account.
  • No automatic transition to adult account after 18 years of age.

Best Savings Accounts For Teens with High Interest

Bethpage Federal Credit Union

Bethpage Federal Credit Union offers a Young Adult Savings account to members between the ages of 18 and 20. You get a big 5.00% APY on your initial $1,000, and the rest can be anywhere within the (5.00% to 1.39%) bracket. The credit union’s mobile app is also included, so you can easily manage your account, deposit checks, and transfer funds to loved ones.

Bethpage is a viable option to conventional banking for the safekeeping of one’s financial assets. In addition, you and your child can open a Young Adult Savings account with the credit union with a $5 deposit. Over 30,000 surcharge-free ATMs are available to Bethpage members. The CO-OP Shared Branch Network gives you access to 5,000 shared branches even if you don’t live near a branch.


  • An attractive annual percentage rate.
  • There is a $5 minimum deposit.
  • The account owner is solely responsible for its management.


  • Lesser APY after the initial $1,000.
  • All Bethpage locations are in New York City or on Long Island, and membership is restricted to those aged 18–20.

Best Long-Term Savings Accounts for Kids

Northpointe Bank Savings Account

When it comes to annual percentage yields (APYs) on children’s savings accounts, Northpointe Bank is among the best.

Northpointe isn’t the only bank out there; some credit unions have better annual percentage yields (APYs) than we do. Northpointe Bank accounts are available to everyone in the United States, but the Kids Savings account application needs you to download a PDF, fill it out, and then either email or send it back to Northpointe.


  • Profit-sharing ratios that compete with the market.
  • No setup costs or minimum balances necessary to accrue interest.
  • When your balance is over $1,000, the introductory APY of 10% decreases.


  • Difficult-to-use application.
  • Physical office in Michigan.

Best Savings Accounts for Grandchild

Alliant Credit Union Savings Account

Alliant Credit Union offers a Kids Savings Account with a competitive rate, plus the ability to set savings goals, track progress, and deposit checks via a mobile app. The allowance can be deposited straight into the account at the parent’s discretion. Alliant Credit Union can be counted as the best savings account for grandchild for a reason.

A free Alliant Savings ATM card is included with every Kids Savings Account, and it can be used at any of the more than 80,000 Alliant Savings surcharge-free ATMs nationwide.


  • The average annual percentage yield.
  • In the beginning, Alliant will put up the $5.
  • Access to a vast, fee-free ATM network with an included ATM card.
  • Those under the age of twelve are the only ones eligible for Kids Savings Accounts.


  • There are no actual locations for branches.
  • Interest is only accrued on amounts of $100 or greater.
  • Any adult co-owners must already be members of the credit union.

Membership in Alliant Credit Union is open to those who meet the following criteria:

  • Partner company or organization current or former employees
  • Family member or spouse of a current or former employee of a cooperative enterprise
  • A local of one of Chicago’s qualifying neighborhoods
  • Alliant covers $5 membership cost to Foster Care to Success.

How to Open a Savings Account for a Child as a Parent

Feeling a bit jittery about opening the best savings account for kids? Here’s all that you need to keep in mind.

What Documents You Need

To kick things off, you’ll need some crucial paperwork in place, such as:

  • Kid’s birth certificate
  • Social Security number
  • Proofs of your own identity
  • Address

What Steps You Need to Take

  • First, research and choose a bank that offers a suitable savings account for minors.
  • The next step is to apply in person or via the bank’s website.
  • And that’s it. You should be good to go after filling out the forms.

Be ready to make the initial deposit if there’s a minimum balance requirement.

What to Expect While Opening A Savings Accounts For Your Kids or Grandkids?

While there is nothing much left once you’ve opened the account, make sure you don’t forget about it. Be sure to get regular updates on the account balance, online access to manage the account, and an opportunity to teach your child about savings and money management.

How to Open a Savings Account for a Grandchild

A grandparent can open a savings account for their grandchild just like any other relative. Remember to do your homework and select only the best savings account for a grandchild.

  • Firstly, get consent from the parents for a newborn bank account. Then, choose a suitable bank and go through the same application process. You might be required to co-manage the account with a parent, depending on the bank’s policy.
  • Expect a valuable financial gift for your grandchild that grows with time and gives them a head start in understanding finances.

How to Open a Bank Account for a Minor Online

In some jurisdictions, the minor age might be under 21 years or under 18. Make sure to confirm it and then go to open an account. Expect the process of a bank account for minors to be hassle-free and quick. You can easily manage the account from the convenience of your own home, and you can even begin teaching your child about financial responsibility immediately. Here’s the process to do it:

  • A parent or guardian’s help: Most banks in the United States require a parent, guardian, or another responsible adult to be a co-owner of the account.
  • Identification: The child and the parent or guardian will need to provide identification with SSN, Driver’s License, or ID Card.
  • Personal Information: You will need to provide all the basic information such as name, age, SSN, etc.
  • Initial Deposit: Many accounts will require an initial deposit. The amount varies depending on the bank’s policy.

Best bank account for minors?

Choosing the best bank account for minors can depend on a few factors that we discussed above. Other than M&T bank, here are a few options you can consider:

  • Capital One’s MONEY Teen Checking: This account is for teenagers and comes with no monthly fees, no minimums, and a decent APY.
  • Alliant Credit Union Kids Savings Account: It offers high-interest rates, and the only requirement is for the child to join the Alliant Credit Union.
  • PNC Bank ‘S’ is for Savings: This account features a unique, kid-friendly app that teaches the basics of saving and budgeting.

Best Savings Accounts For Kids: In summary

In this whirlwind tour of the best savings account for kids, we’ve touched upon accounts tailored for every age group, from infants to minors to teens. The journey begins with selecting the right account—an account that grows with your child, evolving from their first piggy-bank-style savings to a robust platform for their teenage financial endeavors.

It’s an opportunity to sow the seeds of financial literacy and prudence early on, setting them up for a lifetime of financial success.

And let’s not forget the best savings account for your precious grandchild! Nurturing their financial growth is a unique expression of love, one that secures their future while teaching them the value of saving.

So, there we have it – a glimpse into the best newborn bank account and how to open a savings account for a child. Let’s turn those monetary dreams into reality, shall we?


1. Can I open a checking account for my child?

Absolutely, you can open a checking account for your child! Many banks offer specific checking accounts designed for youngsters. These accounts are often joint accounts, with parents or guardians maintaining oversight. They’re a great tool to help your child understand the nuances of banking and money management, from writing checks to tracking expenses. It’s never too early to start that financial education!

2. What is the minimum age to open a savings account?

It’s not a given, but there might not be any age limit at all. According to the bank’s policies, you can open a savings account that covers your age bracket. There are account options available from newborn to adults. Also, there might be some conditions before you can open a savings account if you’re going for a bank account for minors under the legal adult age in your jurisdiction. Make sure to check those rules before you go to get a savings account.