Teaching kids financial responsibility is a great way to impact their financial success later in life. One of the best approaches is opening a savings account for them. The ideal savings account for kids has the main elements adults look for fewer service charges, tools to reach a goal, and great interest rates. Here’s a look at some of the best savings accounts for kids.
Best Savings Account For Kids:
Alliant Credit Union Kids Savings Account – High APY, Minimum of $5 Opening Deposit
The Alliant Credit Union account is great for every child, even when they have nothing to save yet. The bank starts them off with $5, which compensates for opening deposits. As soon as they turn 13, they’re automatically eligible for a Teen Checking Account. Luckily, this does not replace the former; the account holder can maintain the two.
Alliant Credit runs a system that allows parents and guardians to connect their Alliant account to their children. As a result, you know the current balance and can access deposits. With specific financial education programs, Alliant helps your child to be self-sufficient while investing in their future. While some may consider the absence of a savings bonus as a downside, this account’s several benefits compensate.
Citizens Bank College-Saver – 0.01% APY, $1,000 Bonus
This account offers one of the biggest long-term bonuses for a kid’s savings account. The Citizens Bank College-Saver is open to any child under the age of 12. With a minimum monthly deposit of $25 for kids under 6, your child is on the way to receiving an incentive when they clock 18. The monthly deposit range goes up to $50 for kids between 6 and 12. In addition to this, you could miss one monthly deposit every year without forfeiting the bonus. Regardless, there are no monthly charges, and the monthly deposits are relatively reasonable.
PNC “S Is For Savings” Bank Account – $25 minimum deposit, 0.01% APY
History is on the side of PNC and they’re doing great for a traditional bank. What the account lacks in APY, it compensates for other financial perks. The institution focuses on providing tools that educate your kids on money management. While the APY may seem low, parents who emphasize learning have their kids in safe hands.
Your child learns how to divide or quantify their savings towards specific goals through a drag-and-drop element. Furthermore, the feature incorporates Sesame Street Characters that keep the activity fun. There is simply no restriction on the number of deposits you can make, which is a unique characteristic. Although 0.01% of APY seems low-end, there is no service charge for kids under 18. However, if a parent has a PNC account already, they can have a closer interaction with their kid’s account. PNC has an automatic saving system that allows parents to make recurring deposits from their accounts. It takes only $25 to activate the account. You can expect significant changes in account policies after the age of 18.
Capital One Kids Savings Account – 0.30% APY, $0 Minimum Deposit
Capital One has two accounts that could help a child manage their money. The Kids savings account offers a total of 0.30% APY with no maintenance fee. Similarly, you need zero minimum balance to open the account, and it comes with the perks of saving as much as the holder desires. With this account, you can also set saving goals and automatic saving plans that can foster scheduled but regular deposits. Again, parents and legal guardians can connect their accounts to make things easier.
A second account, called the MONEY teen account, starts at 8. While the account works fundamentally to amass funds for them, it also teaches them how to manage money effectively. There’s access to a mobile banking app alongside a free debit card. Like other accounts, there is no service charge.
At 18, the kids’ savings account becomes a standard savings account known as the 360 Performance Savings Account. MONEY teen has a similar setup, but it becomes a 360 Checking account. Overall, your child is sure of reaching their financial goals.