The 4 Best Savings Accounts for Kids (Fees, Interest, & More Considered)

Short Answer

The best savings account for your child is the Capital One Kids Savings Account; it offers a good interest rate, no large initial deposit requirement, as few fees as possible, and automatic account upgrades after age 18.

A few runners-ups are American Bank — Young American Account, Main Street Bank — Junior Airsavings, and Zions Bank — Young Savers. For more information on the best savings accounts for kids, see below.

Criteria for a Good Kids Savings Account

Here’s how we determined which savings account is best for your child:

Interest Rate

Without passive income, a person can’t become truly wealthy. That’s why we think it’s important for a child’s savings account to earn interest.

It shows the child that having money makes you more money. This process will teach him or her why saving money is important.

When I was a child, getting what I called “free money,” or interest, was so exciting.

Initial Deposit

A good kids’ savings account shouldn’t require a large initial deposit.

The financial organization should understand that taking the first step toward money management is more important than a lump sum. Plus, most kids can’t afford a large initial deposit.

Further, the bank shouldn’t charge a fee if the child fails to maintain a certain balance.


No matter the age, fees are never a good thing. So, when looking for the best savings account, we determined fees had to be kept to a bare minimum.

Fees are demotivating for children. Plus, it’s hard enough to keep tabs on our bank account fees as adults. How are we supposed to keep track of the fees of our child’s account too? That’s too much to worry about.

Account Upgrade

Savings accounts for kids are usually focused on those under 18. But what happens once they turn 18?

With everything else going on at this pivotal point in their lives, the last thing young adults want to do is find a new bank. A good children’s savings account will automatically upgrade to an advanced one like a student savings account or a traditional savings account.

Best Kids’ Savings Account: Capital One Kids Savings Account

The kids’ savings account that fits all the criteria above is the Capital One Kids Savings Account. This savings account is specifically designed for tiny savers.

After opening an account, the child can manage it using their personal log-in details. Kids can check their balance and save their account history, eStatements, and tax forms. However, they can’t yet transfer money without a guardian’s approval.

A custodian — or parent or guardian — can open a Capital One Kids’ Savings Account with a child online. The adult doesn’t need to have a Capital One account.

The adult will need to provide relevant information about themself and the child. Kids can have multiple savings account — perhaps one for college and another for a first car, for example.

No initial deposit is required to open a Capital One Kids’ Savings Account.

Additionally, there are no fees to maintain the account and kids will earn an interest rate of 1.00%.

Please note, account withdrawals are limited to six per month, but this limit is standard.

When the account holder reaches age 18, the kids’ account is automatically transferred into a 360 Savings Account.

Capital One has mostly 5-star reviews from its customers and falls into Grade A category in terms of financial health. Its services are available to anyone residing in the United States.

Capital One’s Three Types of Savings Plans

Capital One offers the following services for all savings accounts, including kids’ accounts:

  • Automatic Savings Plan: The bank will transfer a predetermined amount on a specific schedule from a designated checking account to the child’s savings account.
  • Multiple Accounts: Each child is allowed to open a maximum of 25 savings accounts free of charge.
  • My Savings Goals: Kids can set specific savings goals and track their progress online.

Three Runners-Up: Good Savings Accounts for Kids

Capital One wins best kids’ account when considering all aspects of a child’s bank account. But if you feel strongly about one category over the others, such as interest rate, see the runners-up listed below.

American Bank – Young American Account

  • Requirements: Must be 17 or younger and must open the count jointly with an adult who has an American Bank account
  • Features: Converts to a regular savings account at age 18
  • Initial Deposit: No requirement
  • Interest Rate: Variable interest, paid quarterly
  • Fees: If daily balance is $5 or more, there is no fee. Otherwise, the fee is $3 per month.
  • Find a branch

Main Street Bank – Junior Airsavings

  • Requirements: Must be under age 18 and open the account with an adult who has a relationship with Main Street Bank
  • Features: Transfers to a regular account when the child turns 18
  • Initial Deposit: $5
  • Interest Rate: 4% on balances up to $1,000, 0.25% thereafter
  • Fees: No fee for up to six transfers each month. After that, each additional transfer involves a fee of $10.
  • Find a branch

Zions Bank – Young Savers

  • Requirements: Must be between ages 13 and 25
  • Features: Includes an option to make automatic transfers from a checking account so the account can build up savings over time
  • Initial Deposit: No requirement
  • Interest Rate: Up to $999, 0.24%, for $1000 or more, 0.08%
  • Fees: No fees; up to six withdrawals per month.
  • Find a branch

The next step is to fill the account. For that, you may want to see our article, Jobs for 11, 12, 13 Year Olds: Summer Jobs and After School Jobs.


One thought on “The 4 Best Savings Accounts for Kids (Fees, Interest, & More Considered)” - Comments are closed.

  • Cat

    Excellent article! I don’t think many people know about the perks (and drawbacks) of some kids’ savings accounts. We have some savings for our twins already and we excited to watch it grow as they grow up too.

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