Best Savings Accounts for Kids 2020

Daniel Penzing
Written by
Last update:

Give your kids the gift of a savings account and teach them about money management.

Teach your kids the value of a dollar with a kids savings account. It can be used to pay for essentials (like toiletries) or for more indulgent things (like concert tickets, clothes, or computer equipment).

There are quick and easy ways to get started with savings. Find out what types of savings accounts are available and learn how to open and manage kids savings accounts.

Why Kids Need Savings Accounts

Savings and checking accounts are an essential part of keeping your finances in order. It doesn’t take much money to start, and you have the option to open either a savings account or a checking account.

Kids need a savings account because it is a powerful teaching tool that will help them learn to save money throughout their life. They will learn how to delay gratification and make wise financial decisions.

A kids’ savings account teaches them the value of money and how its managed. It will help them to develop a good work ethic and money management skills. These skills will allow them to save money as they grow older.

By saving money, they can get a jump-start on financial responsibilities like a car, a house, and help secure their future.

There is a wide range of savings accounts for kids available. If you are looking for a high yield, here are the best children’s savings accounts for you. If you’re looking for something that has a more accessible monthly minimum, here are the top 10 choices for you.

You can take advantage of unique features offered by your savings account, like mobile check deposit, e checks and cashier's checks. It is always a good idea to use your savings account for short term savings goals, preferably goals that will be met within around 1 year, such as Christmas gifts, a vacation to the Bahamas or a trip to Walt Disney World.

In this brief guide, we are going to take a look at ten of the top online savings accounts for kids and young adults. There are many factors to consider when choosing the perfect savings account for kids, but we’ll focus on factors such as interest rates, rewards programs, minimum deposit requirements and the overall ease of use.

Capital One

Capital One 360 Kids Savings Account is a good account to set up since it is a no-fee savings account. That means you can open an account for one of your kids and don’t have to charge them an annual fee when they deposit funds. The account is also a FDIC-insured savings account, meaning you can feel safe depositing funds in the account as opposed to a money market account.

TD Bank

In general, kids savings accounts give you the peace of mind that your kid won't spend that money on something they think is cool now, but regret later. If your child is old enough to keep track of their own money, then they are probably ready for a savings account, and TD Bank has the right account for you. The TD Bank Kids Savings Account rewards you every time they do something good.

The TD Bank Kids Savings Account currently earns a 0.05% APY and has no monthly fees. To open the account, your child needs to be age 12 or younger, and deposits need to be made online. But after that, you both can go about it in 5 key steps.

Track the money received in the account.

Complete your online $.50 reward form with specific details

Receive a $.50 digital gift card from the retailer you picked

Receive your $.50 digital gift card

USAA Saving Bank

The list is created by most reviews, rates, and analytics.

Ally Bank

Isn’t just a place where you can find great student loans as well as other financial services for children and teens. It also offers a Kids Savings Account designed to help families teach their kids about the importance of saving money now while allowing them to be in control of their finances.

Designed for children ages 7 to 17, the Kids Savings Account works like a standard savings account, only with more perks and benefits. By setting up a Kids Savings Account, kids will learn how the economy operates and how saving money works within it.

The Kids Savings Account has some awesome features that help teach responsibility in a fun and engaging way.

Manageable Interest Rate

A Kids Savings Account offers the same 0.50% interest rate as an adult basic savings account.

However, with the Kids Savings Account, they don’t need to worry about the impact of interest rate fluctuations, which can have a negative impact on their savings.

The 0.50% is fixed at all times, even if the economy takes a turn for the worse.

Choice of Bank Account

Kids also get to choose from five different bank account designs.

They can use the money that they’ve saved for gifts, schooling expenses, clothing, or just for savings as an emergency fund.

Wealthfront Cash Account

Wealthfront is a free online investment and personal finance companion that uses automatic deposits to help you achieve your financial goals.

Money is the number one cause of stress in the US, and keeping control of your finances is a huge stress reducer. Once set up, Wealthfront controls your savings account so that you never have to worry about it.

Wealthfront is made for those who want to start saving for any goal, from paying off student loans to buying a house. Wealthfront gives you the ability to save for specific goals at the click of a button. Plus, they keep your money safe from fraud and market risk.

In addition to being free, there are several other features that make Wealthfront superior to other investments apps.

Connect your bank accounts and credit cards to Wealthfront and they will automatically invest the amount you recommend. Not only do you save on fees by having Wealthfront control your giving, but you save on time as well. Set up your goals and Wealthfront does the rest … no action on your part required.

Wealthfront offers guaranteed rates on your money. You won’t pay fees for having your money in their account, and you won’t need to worry about losing any of your money. Wealthfront is one of the few companies that puts client protection first.

Conclusion

There are more than 50 different financial institutions that provide bank accounts for kids, and more are coming into the market all the time. With so many options available, you might think it’s hard to find one that’s right for you. In this guide, we’ve reviewed the most popular banks offering kids savings accounts.

We’ve taken a look at dozens of accounts, and we’ve highlighted their pros and cons. Whether you’re looking for a place to stash your own savings or save for your child’s future education, we’ve found the account that’s right for you.

When choosing a bank account for your kids, the initial costs isn’t as important as the ongoing fees. With that in mind, you’ll want to choose the account that offers you the best all-around value, from the type of accounts available to the types of branches it provides.

This review highlights all of the different factors you should consider when choosing a kids savings account, which includes:

ACCEPTABLE ACCOUNTS. Look for a bank that offers your children the most options, whether that’s checking or savings accounts, prepaid debit cards, or credit cards.