Top Savings Accounts for Children and Teens in 2024
Your relationship with money starts forming early in life. How you teach your child to handle money can shape their emotional reactions and learning experiences related to spending. Talking about money and encouraging saving habits can help them develop a healthy approach to managing finances as they grow.
Savings accounts, including joint accounts, child accounts, and custodial accounts, can be a great way to introduce your child to the financial system. These accounts can help them get comfortable with banks and develop good spending and saving habits. They also serve as tools for teaching goal-setting. By saving money for things they want, children can learn the rewarding feeling of reaching their goals.
Here are some of the best savings accounts for kids in 2024. These accounts offer benefits like low minimum deposits, zero fees, minimal balance requirements, and decent annual percentage yields. Some banks and credit unions also provide educational tools for children, which can be helpful when choosing the right account for your child.
Banks with physical locations where children can interact with bankers and deposit money in person received extra consideration. These experiences can be more impactful since children often handle cash rather than direct deposits. The following list highlights the most family-friendly financial institutions that can help your child start a healthy money management journey.
1. **Northpointe Bank Kid’s Savings**: Ideal for kids and teens with serious savings goals. This account offers a competitive APY, though the rate drops for balances over $1,000. It has no maintenance or minimum balance fees and can be set up in person or over the phone. However, closing the account within 120 days incurs a $10 fee.
2. **M&T Starter Savings Account**: Great for children learning to save with minimal earnings emphasis. It features an automatic savings option and no minimum balance requirement. There are no fees for users under 18, but you must visit a branch to open the account. The APY is low.
3. **PNC S is for Savings**: Perfect for young children, this account includes an online interactive experience with Sesame Street characters and allows kids to set savings goals. It offers educational resources, many physical locations, and no fees for users under 18. However, it has a low APY and requires a minimum deposit. There is a $5 fee for account holders over 18, which can be waived with a monthly balance of $300 or more.
4. **Capital One Kids Savings**: This account is simple and fee-free, offering an APY that applies to all balances. It connects to parents’ accounts, allowing for easy parental oversight and helping children set up savings goals. It also provides a wide network of ATMs.
5. **Alliant Credit Union Kids Savings**: Suitable for kids 12 and under due to age restrictions, it offers a high APY with a low minimum deposit requirement.
6. **USAlliance Financial MyLife Savings for Kids**: Best for younger children looking for a higher-than-average APY, with no minimum deposit required.
When choosing a savings account for your child, consider these options to help them build a strong foundation in money management.