The Top Youth Savings Accounts for Kids and Teens

Teaching children and teens about money management from an early age is necessary for developing their financial responsibility and literacy. A youth savings account is the ideal tool for this education, allowing young people to learn the value of saving and the reward of seeing your balance increase with interest.

It’s essential to explore the best savings accounts for teens and children, highlighting the key aspects parents should consider. Knowing about interest rates and fees, while identifying and using related educational features, can all encourage your child’s financial journey.

Methodology for Selecting the Best Savings Accounts for Kids and Teens

Choosing the best savings accounts for your kids and teens involves considering several key factors to ensure an informed decision. To start, evaluate each type of account based on factors such as its Annual Percentage Yield (APY), monthly maintenance fees and minimum balance requirements. Then look at age accessibility, parental controls and any unique educational tools or features that will enrich your child’s financial literacy.

Consider a diverse mix of accounts — national banks, credit unions and fintech solutions can all provide savings facilities that could meet your family’s needs. After considering these factors, you’ll feel more comfortable selecting an account to help your child save and teach them beneficial money management skills.

The Best Savings Accounts to Suit Your Youngsters’ Specific Needs

Whether your priority is financially educating your children and teenagers, showing them the immediate benefits of saving, or making their journey into savings as hassle-free and convenient as possible, savings accounts that cater to your needs exist. The accounts listed below provide noteworthy starting points for your youngsters.

1. Members 1st Federal Credit Union — Best for a Lifelong Financial Savings Journey

Members 1st Federal Credit Union stands out as the best choice for fostering a lifelong financial journey for kids, thanks to its innovatively tiered Youth Club savings structure. Designed for various age groups, these tiers — the Kids 1st Club (ages 0-12) and iMember Club (ages 13-19) — evolve as your child grows, affording them age-appropriate financial education and engagement opportunities. The Kids 1st Club allows branch and digital banking options, with a complimentary piggy bank for your child upon opening an account with a $5 minimum deposit.

Your child gets to choose a toy from the treasure chest every time they deposit $5 or more. Teens opening an iMember Club account also only need a $5 deposit, which can qualify them for a checking account and a Visa debit card. The Members 1st Federal Credit Union Youth Club program emphasizes financial education through your local branch or MyConcierge™ services, ensuring young members develop essential money management skills.

With its tiered approach, 1st Federal encourages first-time savers to learn and grow under its expert financial guidance, advancing through the tiers as they mature. Upon reaching adulthood, they can utilize Members 1st’s familiar expertise and services throughout the following years.

Key Youth Savings Features:

• Parental-monitored, tiered Youth Club savings
• Low minimum deposits
• MyConcierge™ and branch financial education

2. Capital One — Best for High-Yield Interest with No Fees

Capital One has a Kids Savings Account that is an outstanding option if you’re looking for a straightforward, high-return savings solution for your children or teens. With a competitive 2.50% APY, this account allows your young savers to maximize their incomes without the burden of monthly fees or minimum balance requirements to maintain their savings account status. For these reasons, this savings account is an accessible choice for parents aiming to plant good saving seeds in their kids early on.

In addition to its attractive interest rate, the Capital One Kids Savings Account has parental controls and digital tools that make monitoring your child’s savings activity easy. These helpful tools enable you to discuss financial priorities with your children at the source, allowing you to address saving and budgeting with them while directly referencing their accounts. While your teenagers currently have no access to an ATM card through their savings account, opening a MONEY Teen Checking account provides this option, helping them manage their money independently.

The Capital One Kids Savings Account remains a popular choice for families seeking a high-yield savings account for kids, without the added hassle of monthly fees.

Key Youth Savings Features

• High APY
• No Fees or minimum balances
• Parental controls and digital tools

3. Alliant Credit Union — Best for Preteen High-Yield Savings

The Alliant Credit Union Kids Savings Account is an exceptional choice for your younger children as they learn to save and build their balances. It offers a high APY of 3.10% on balances over $100. This competitive rate allows your kids to watch their money grow after they reach the minimum amount and earn 15 times the bank industry average in interest. If you want to encourage your children to save money, the Alliant Kids Savings Account provides additional motivation for developing good financial habits early on.

Alliant even covers the initial $5 deposit needed to open the account, removing any financial barrier for families embarking on their child’s savings journey. As long as your child is 12 and under, you can ensure they can benefit from high-yield savings during their formative years.

However, once your kids become teenagers, they must transition to an Alliant Teen Checking Account, which also offers a savings option. In the meantime, the Alliant Credit Union Kids Savings Account is a proactive and effective way to encourage financial literacy and responsible saving among your growing preteens.

Key Youth Savings Features

• High APY on amounts over $100
• Initial deposit covered
• 12-year-old age limit targeting preteens

4. Fidelity — Best for Teenagers Ready to Invest

Fidelity stands out as an effective alternative for teens aged 13-17 who are ready to advance their financial education further. The Fidelity Youth® brokerage account facilitates saving, spending and investing in stocks and funds for your adolescent, providing an all-around platform for young investors. With Fidelity, teens can learn about the stock market and hone their investment skills under their parents’ guidance, making it an excellent educational tool.

The Fidelity Youth account highlights parental supervision, so you can monitor your teen’s investment activities while urging responsible decision-making. You require no minimum balances and there are no account or subscription fees. This brokerage account allows your teen to invest as little as $1. However, it’s important to note that the Youth account is not a traditional savings account — it involves risk due to fluctuations in investment values.

The account allows your growing teenager to learn and understand the dynamics of investing, preparing them for a financially savvy future. Overall, the Fidelity Youth account is an advanced option for teens keen to explore the investment world and gain valuable financial knowledge under their parents’ guidance.

Key Youth Savings Features

• Investment options
• Parental oversight
• Educational value in investing

5. Current — Best for Mobile Banking

Current is an ideal choice for your teen if they’re looking for a contemporary, app-based solution to learn how to budget and spend responsibly. Although not specifically designed for young savers, this innovative platform empowers teenagers to manage their finances effectively through a user-friendly mobile app that provides real-time insights into their spending habits.

Instant payment notifications keep your adolescent informed about their transactions, and parental controls allow you to set spending limits and monitor your child’s spending. Additionally, Current offers automated allowance payments, which simplify managing your teen’s finances.

However, the basic savings feature earns no interest, and the service operates as a subscription-based model.

Despite this, Current still provides a valuable educational experience for teens, helping them develop introductory financial skills in a digital age. With Saving Pods offering a 4% annual bonus for reaching annual goals, Current carries an incentive to save. Overall, the fintech company is an excellent savings choice if you want to equip your teenager with the online tools they need to navigate their modern financial future with confidence.

Key Youth Savings Features

• Modern app-based mobile banking
• Instant notifications
• Parental controls for spending limits and automated allowances

Youth Savings Account Comparative Table

The following comparative table can provide you with the direct comparisons you need to make informed choices about your kids and teens’ savings platforms. Please note the following:

• APY: The APY varies by account type and balance.

• Fees and subscriptions: Most featured savings accounts have no monthly payments, but some may require an initial deposit or be subscription-based.

• Debit Cards and online banking: All accounts offer online banking, but debit card availability varies. Although Fidelity’s account is primarily for investing, it also provides savings options.

Educate Your Kids and Teens With the Top Youth Savings Accounts

Selecting one of the top youth savings accounts is a step toward encouraging financial literacy and responsible money management in your children and teens. With options ranging from high-yield savings accounts to investment platforms, you can find the perfect fit for your child’s specific savings needs and goals to empower their secure financial future.