4 Best Savings Accounts for Kids

Alliant offers a 3.10% APY, so your child can earn a solid return, though the account earns interest only if the balance is at least $100. The account has no monthly fee as long as you enroll in electronic statements (otherwise there’s a $1 fee for each monthly paper statement). The credit union is online only, and its mobile apps are highly rated. In addition, Alliant allows parents to open supplemental savings accounts to help kids reach specific goals. So they could open an account for regular savings and a separate one to put away money for a new bicycle, for example.

The Kids Savings Account is available to children age 12 and younger. There’s an opening deposit requirement of $5, but Alliant will pay it for you. Parents of older children can open a standard Alliant savings account; it comes with a similar APY. They could also open an Alliant teen checking account, which earns interest and comes with a debit card. It has spending limits and allows parents to set up transaction alerts to monitor spending.

Before you open this or any other account at Alliant, you’ll have to become a member.

First Tech Start Up Savings offers a healthy 5.00% APY on balances below $1,000. The yield drops to 0.10% on amounts above that. The minimum balance to open an account is $25, and there is no monthly fee.

A parent or guardian will need to be a joint owner of Start Up Savings, and you and your child will need to be credit union members. There is no minimum age requirement for your child; once they turn 18, Start Up Savings will convert it into a standard account.

Credit union membership is heavily geared toward those who live or work in parts of Oregon, but anyone can be eligible to apply if they join the Computer History Museum or the Financial Fitness Association, two partner organizations. However, there may be a cost to join the partner organization. The Financial Fitness Association, for example, has an $8 membership fee.

A Primary Savings Account is available for kids and adults. In fact, it’s required in order to be a credit union member. The account earns a competitive 5.00% APY on balances up to $500. Amounts above that earn much less — only 0.25%. The minimum to open an account is $5.

For children, Service Federal Credit Union offers a youth-oriented website with online games, music videos and learning materials to help teach the value of money. Teens can open a Primary Savings Account online, but if your child is 12 or under, you’ll need to call customer service to open an account. You could also visit a branch, but they are primarily on military bases in and around the state of New Hampshire, or in Germany.

Boeing Employees' Credit Union's membership criteria is limited but its stellar promotional APY earns it a mention on this list. The Early Saver account lets you and your child tap a 6.17% APY on the first $500. But a lackluster 0.50% APY applies to any larger amount. Early Saver has other hallmarks of a good savings account, however, including no monthly maintenance fee and no minimum deposit requirement.

The BECU Early Saver Youth Account is available for kids 17 and younger. Once they turn 18, they can convert their kids savings account into a Member Advantage account, the credit union’s premier savings option. The Member Advantage account earns a 6.17% on the first $500. As with the Early Saver account, once the balance tops $500, the APY drops significantly. If you’re planning on depositing more than $500 initially, it may be worth looking at a high-yield savings account instead. Some of the best accounts have rates above 3% on all balances.