6 Best Savings Account For Kids in 2020

It’s never too early to learn good financial habits. If you want to instill them in your children, you can start by setting up a savings account. 

A savings account will give your child their first chance to start building toward real wealth. It will help them develop an understanding of concepts like interest, annual percentage yield (APY), and how to work toward larger financial goals. 

You can find savings accounts for children of nearly any age, from pre-adolescents all the way up to new college students. Here are some accounts that can help each step of the way. For each one, you’ll learn more about what terms are offered.  

Early Childhood

  • First Internet Bank
  • Alliant Credit Union

Teens

  • Capital One MONEY Teen Checking Account
  • Chase High School Checking

College Students

  • CIT Bank
  • Chime Savings Account

Early Childhood

Early childhood accounts are designed to cover children until they are teenagers and ready to start managing their funds more seriously. The following accounts are included because they won’t burden you or your children with fees.

First Internet Bank: Tomorrow’s Tycoons

The Tomorrow’s Tycoons account with First Internet Bank is available to all everyone under 18, and it can be opened with only a $100 initial deposit. Unlike some accounts that can be opened for children, it has a decent (even competitive) interest rate.

There are no fees involved, even if you don’t maintain a balance. 

Important stats

Minimum Deposit: $100

APY: 0.55%

Interest Rate: 0.55%

Monthly Maintenance Fee: None

Average Daily Balance to Avoid Fee: None

Transactions Allowed per Month: 6

ATM Card: None

Alliant Credit Union

The Alliant Kid’s Savings Account is a joint savings account that’s designed for kids who are 12 and younger. The minimum deposit is only $5, but Alliant provides the $5 themselves, so the account is technically free to open. 

The interest rate is a competitive 0.65%, but only those accounts that maintain an average of $100 daily balance earn interest. 

Important stats

Minimum Deposit: $5

APY: 0.65

Interest Rate: 0.65

Average Daily Balance to Collect Interest: $100

ATM Card: Yes

Teens

Teen savings accounts are a bit different from childhood accounts. Many of these accounts transition into full accounts as soon as your teen reaches adulthood. 

Capital One MONEY Teen Checking Account

The Capital One MONEY teen checking account is a teen account that doesn’t come with any attached fees. There are no balance requirements to monitor. That can make it a good choice for teens who like to spend but still need good habits. 

Important stats

Minimum Deposit: $0

Interest Rate: 0.10%

Average Daily Balance Requirement: $0

ATM Card: Yes 

Chase High School Checking

The Chase High School Checking Account is designed for students who are 13-17 years old. It’s a linked account that allows you to check on your teen’s spending. Like other good accounts geared toward this age group, it doesn’t have any monthly service fees attached.

It becomes a full adult checking account as soon as the teen becomes 19. Parents should be aware that over drafting is a possibility, though opting-in requires parent or guardian permission. The fee is $34 for each overdraft.

Important stats

Minimum Deposit: $25

Interest Rate: None

Average Daily Balance Requirement: $25

ATM Card: Yes 

College Students

College student accounts are designed for the needs of students who are setting out on their own for the first time. They are the first accounts on this list that aren’t joint accounts. For that reason, some of the terms are better.

CIT Bank Savings Builder

The CIT Savings Builder Account is a great account for students who are starting to work toward savings goals for the very first time. 

The unusually high-interest rate that comes with the account is available to everyone who either maintains $25,000 or manages to deposit at least $100 per month. The second option is a lot more in-reach for most college students. 

Important stats

Minimum Deposit: $100

Interest Rate: 0.55% (Conditional)

APY: 0.55% (Conditional) 

Chime Savings Account

Chime offers a great savings account option for college students. There are no fees involved at almost any level. The account promises early direct deposit approval, which may also come in handy for college students who need access to their funds as quickly as possible. 

This account also comes with an unusual level of overdraft protection for college students who may have problems with funds.  The account protection features cover up to $100, with no extra fees attached.

This account also comes with an unusual level of overdraft protection for college students who may have problems with funds.  The account protection features cover up to $100, with no extra fees attached.

Important stats

Minimum Balance: $0

Monthly Fees: $0

APY: 1.00%

ATM Card: Yes

Find the Best Account for a Child of Any Age

These accounts can offer you the best chance possible to teach your child about the value of saving. They were carefully chosen to avoid the expensive fees that can come with savings accounts and give your child the most access possible to their cash. 

Remember that the value of any account may depend on the amount that is placed in it, and the access you and your child will have to in-network ATMs. Verify that you live in an area where you will have access to the relevant ATMs to make the most of these accounts.

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