Creating a savings account for your kids is an excellent method to instill in them the value of responsible financial management and put them on the path toward future economic achievement. Like the best savings accounts for adults, the best savings accounts for children provide competitive interest rates and either free or little monthly maintenance costs. They also provide parents with user-friendly tools, such as automated savings transfer, to guide young children in establishing objectives and tracking their savings growth. So, what are the best savings accounts for kids?
Capital One's Kids Savings Account
Capital One has given youth banking more time and thought than many competing companies, establishing two account types for kids and teens and making investments into developing kid- and parent-centric app experience specific to these accounts. This shows that Capital One is a leader in this space. These advantages, in addition to the fact that there is no minimum amount required to earn interest, that there are no fees, and that money may be transferred to a teen account using a debit card, make Capital One our top option for the Best Kids Savings Account.
Capital One will provide an annual percentage yield (APY) of 0.30% beginning in October 2022, regardless of the amount of money in your child's savings account. Although it is not even close to the greatest interest rate that can be earned on a youth account, the fact that there is neither a minimum nor a maximum amount makes it quite flexible. Additionally, if your kid moves into or adds Teen Checking Account at Capital One, they will also earn a tiny amount of interest on that account balance, to the tune of 0.10% APY. This benefit is available to new and existing Teen Checking Account customers.
USAlliance Financial's MyLife Savings for Kids
USAlliance is aware of how much joy it brings children to get presents on their kids and has turned this knowledge into an incentive for youngsters to maintain their own savings accounts. MyLife Savings for Kids, offered by USAlliance, was judged to be the finest youth account for young savers. This was because it offered individuals under 13 a birthday bonus of ten savings per year and a high-interest rate on their initial deposit.
Your kid will get more "birthday dollars" if you start one of these for them earlier. They will also get an extremely attractive annual percentage yield of 2.00% on balances up to $500 in the account. There are presently few youth accounts that pay more than 1%, but the earning potential here is substantially better than the majority of the other choices.
Alliant Credit Union's Kids Savings Account
Alliant delivers an amazing Stage 1 choice with Kids Savings Account, followed by an even more remarkable Stage 2 option with its Teen Checking Account. Learning how to bank is a developing process for younger children, and Alliant gives a great alternative for each stage. Both of these options pay fair interest rates and provide mobile app experiences that are beautifully developed and oriented, particularly toward the needs of kids and their parents.
Children under 12 years old can create an Alliant Kids Savings Account. Alliant will pay a nice 2.50% APY on any account balance over $100; no maximum account balance is required to receive that rate.
Spectrum Credit Union's Youth Account
It's hard to imagine that Spectrum's youth savings account offers an annual percentage yield of seven percent when bank interest rates are as low as they are right now. This interest rate is only applicable to balances of up to $1,000. This is the highest rate that we identified (by a mile) for any kid savings account that is nationally accessible. As a result, it is an obvious pick for the best youth account to maximize interest since it is available nationwide.
Spectrum does not provide a checking account for teenagers, but it lets kids maintain their MySavings Youth Account (and its outstanding interest rate) for a far longer than most other banks do, all the way up to the age of 21. Additionally, it enables anyone over the age of 13 to choose to get an ATM card. When account balances exceed $1,000, the annual percentage yield (APY) for Primary Share Savings is reduced to 0.60%.
