Best Savings Accounts for Kids: 4 Options Detailed

The best savings account for your child is the Capital One Kids Savings Account. This account meets all our criteria for 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.

Criteria for a Good Kids Savings Account

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

Interest Rate

Without passive income, a person cannot 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, kids can manage their account using their personal log-in details. Kids can check their balance and download account history, eStatements, and tax forms. They can’t yet transfer money though 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 does not need to have a Capital One account. The adult will need to provide relevant information how him or herself and the child. Kids can have multiple kids’ savings account — perhaps one for college and another for a first car.

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 often 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. The financial organization is available for anyone residing in the United States. In my opinion, the Capital One Kids’ Savings Account is the best choice for teachings kids and teens how to manage money.

Capital One Offers Three Types of Savings Plans for Kids

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

Automatic Savings Plan: A predetermined amount is transferred on a specific schedule from a designated checking account to the kids’ 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

The Young American Account is for children up to age 17, opened jointly with an adult who has an American Bank account. When the account holder reaches age 18, the account is converted to a regular savings account with associated new terms and conditions. Find your nearest American Bank.

  • 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.

Main Street Bank – Junior Airsavings

The Junior Airsavings account is for kids under age 18. Children must open an account with an adult who is already connected to Main Street Bank. Find your nearest Main Street Bank

  • 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.

Zions Bank – Young Savers

The Young Savers account is for those 13-25. Find your nearest Zions Bank

  • 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.

Related Article to See Next: Jobs for 11, 12, 13 Year Olds: Summer Jobs and After School Jobs

1 Comment

  • 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.