Savings accounts for kids are important. They are great for teaching money management skills to kids. And they are the beginning of starting your kiddo toward the path of financial growth and success.
But there are still few savings accounts for kids set up by parents. According to a Treasure Financial survey, only 36 percent of parents said their kids have a savings account:
And only 21 percent of kids have a debit card:
Should your kiddo have a savings account? Absolutely. Kids can start saving money early, via parents of course. This is especially valuable if your kid already receives a weekly or monthly allowance.
If you have yet to open a savings account for your kid, keep reading. We have compiled the top savings accounts for kids. Let’s dive right into your future kids' savings!
U.S. Savings Accounts For Kids
Savings Account For Kids #1: Capital One 360
Capital One 360 savings account is one of the best savings accounts for kids. From top-notch customer support to strong savings account rates, there is a lot to like for parents. There are also zero monthly fees on having a Capital One 360 account.
Here’s a breakdown:
- High interest rate of 0.50 percent APY
- No minimum deposit to open the account
- Savings and CDs option
- Zero monthly maintenance fee
- 39,000 ATMs with free withdrawals (Capital One and Allpoint Network)
There are, however, two downsides. Overdraft fees can be very high. And don’t expect to do any in-branch banking. Capital One is mainly an online financial institution. Capital One does have an app with online deposit features.
Capital One also has a kids savings account option that is not a 360 savings account. But the interest rate is higher on the 360 savings, making it a far better choice.
Savings Account For Kids #2: Bank Of America Minor Savings Account
Bank of America is a massive financial institution with 24/7 support and thousands of locations. This makes the Bank of America Minor Savings Account a top choice for savings accounts for kids. Not to mention the unprecedented digital experience that teaches kids how to bank online.
Here’s a breakdown:
- Zero monthly maintenance fee for children under 18
- Financial specialists at the ready
- 24/7 support
- Mobile app and high digital presence
- $25 minimum deposit to open
- $0 minimum balance
- A 0.01 percent interest rate
The cons of this savings account via Bank of America is the low interest rate. It can be as high as 0.05 percent, but there are certainly higher interest rates out there to explore. The one pro of opening an account with Bank of America is knowing you are banking with one of the top financial institutions.
Savings Account For Kids #3: Alliant Credit Union High-Rate Savings
The Alliant Credit Union High-Rate Savings account is a must consider when looking at savings accounts for kids. This savings account delivers a very high interest rate of 0.65 percent APY. And a free $5 deposit when opening an account.
Here’s a breakdown:
- 0.65 percent interest rate (with $100 or more balance)
- Alliant bank pays the $5 account opening fee
- No monthly maintenance fees
- Over 80,000 free ATMs
- Mobile banking ready with online transfers
There are some downsides to this savings account for kids option. One is that the overdraft fees can be as high as $28. There is also a membership needed, since Alliant is a credit union. But despite these cons, a high interest rate is worth researching it more.
Savings Account For Kids #4: Golden 1 Youth Savings Account
Last but not least is the Golden 1 Youth Savings account from Golden 1 Credit Union. This is a great kids savings account option with a 0.08 percent interest rate APY, and the ability to open an account with just $1.
Here’s a breakdown:
- Money management for kids (withdraw and deposit)
- 0.08 percent interest rate APY
- $0.01 minimum balance
- $1 opening deposit
- Online banking ready
One of the coolest features of this kids savings account is that kiddos can learn to manage their own money. This account allows kids under 18 years of age to withdraw and make deposits on their own.
Canada Savings Accounts For Kids
Savings Account For Kids #5: CIBC Advantage For Youth
CIBC is a Canadian financial institution that offers a great savings account for kids. Their motto is, “Give your child a head start on saving.” This savings account serves up a 0.05 percent interest rate that is calculated daily, and paid out monthly.
Here’s a breakdown:
- Interest rate of 0.05 percent
- No monthly maintenance fees
- Unlimited transactions
- Free Interac e-Transfer® transactions
- Access to 4,000 ATMs across Canada
This is a good option for parents and kids. The CIBC Advantage for Youth savings account even has an automatic transfer option, letting parents set up auto allowance payments. This is a savings account for youth under 18.
Once your kiddo turns 19 years of age, his or her CIBC youth savings account automatically transfers to a CIBC Premium Growth Account.
Having an allowance app for kids can bring financial wellness and money management skills to the forefront. Check out the Treasure App and Treasure Debit Card today.
Savings Account For Kids #6: Scotiabank Getting There Savings
Another Canadian bank option when it comes to kids savings accounts is the Scotiabank Getting There Savings for Youth. This savings program gives kids under 18 years old a way to begin building their financial futures.
Here’s a breakdown:
- Zero monthly maintenance fees
- As high as 0.10 percent (tiered interest rate)
- Auto savings plan for parents and kids
- No limit on debit transactions
- 2 free Interac e-Transfers monthly
- Access to over free 55,000 ATMs
The Scotiabank Getting There Savings for Youth account is certainly a great option for Canadian families ready to start saving for the future with their kiddos.
It is important to note that to get the 0.10 percent interest rate, deposits need to be greater than $500. For deposits to the savings account under $499, the interest rate will only be 0.05 percent.
Is It Time To Invest In Your Kid’s Financial Growth?
The above 6 best savings accounts for kids have their own pros and cons. Choosing the right kids savings account can be tricky, but not impossible. It is important to explore all options, whether you live in the U.S. or Canada.
From high interest rates to easy account access, there are benefits among all the 6 savings accounts above. You may even want to set up two or three savings accounts for university savings, financial growth, and general financial practice.
You can also check out the Treasure Card App option as well. Not a traditional savings account, but certainly a way to help kids learn money management, see allowance earnings grow, and set up personal savings goals. Learn more about the Treasure Card App, available for iOS and Android mobile devices.
