Best Saving Accounts for Kids

4 Best Saving Accounts for Kids 2022

Looking for the Best Saving Accounts for Kids? Would you like to know the best options for 2022? Then this guide is for you. We leave you our top 4 bank accounts for children. In addition, you will know why they are in our count, their rates, commissions, benefits, special features, and much more.

Why Open a Saving Account for Kids?

Opening a bank account for your children is a great way to teach savings and money management skills to the little ones in the house. The best bank accounts for kids earn interest and have low or no monthly fees. That’s right, as it is about adult bank accounts.

In general, financial products that were specially designed for children have convenient tools; like automatic savings transfers, for parents to help their children set goals and watch their money grow over time.

How can I Open an Account for my Kid?

The banks and credit unions we mention in this guide allow online account opening. Therefore, it can be a simple process that you can complete from the case. However, because these are accounts for minor children, you (or another adult) will act as the primary account holder. That is, you must also apply.

Now, if you choose to open an account through credit unions, you must pay for a membership. This is often done as part of the online application, though sometimes you may need to pay for membership first, then come back to open an account.

Don’t worry! The opening process for a children’s bank account is the same as that for an adult. Finally, we recommend having the following on hand:

  1. Your DNI/NIE/Passport/Driver’s License.
  2. Personal data such as Email and mobile number.
  3. Proof of address (A receipt for a service).

What Documents Do You Need to Open a Bank Account for Kids?

Most banks (and credit unions) will ask for the following personal  (your child’s) documents :

  • Birth certificate.
  • Social security card.
  • Immunization records.
  • School photo ID.
  • Passport.
  • Driver’s license (In case of opening an account for a young person over 16 years of age).

4 Best Saving Accounts for Kids 2022 USA

Child or youth savings accounts are bank or credit union accounts available only to customers under the age of 21. Although, sometimes they have a maximum limit of 12 or 18 years. The best children’s accounts pay higher interest rates than adult accounts; All this has the purpose of encouraging young savers.

We want to clarify that a savings account for a child or youth under the age of 18 will always require joint ownership with an adult; usually the child’s parent, grandparent, or guardian. As such, the account holder (the adult) has full access and transactional authority over the account, while the child generally has some limitations on the transactions he or she can make.

Bearing in mind the above, and for 2022, our selection of the best bank accounts for children is as follows:

  1. CapitalOne.
  2. USA Alliance Financial.
  3. Alliant.
  4. Spectrum Credit Union.

1, Capital One: Best Overall

Capital One has unbeatable mobile banking tools. Plus, it helps you set multiple savings goals and the option to convert your kids’ accounts to checking accounts when they’re older.

Among its main advantages and characteristics, we have:

  • Interest is paid on any balance.
  • No minimum balance and no commissions.
  • A top-notch mobile APP is available with parental control.
  • Your child has a checking account with a debit card as a teenager.
  • Available for children over 8 years old.
  • Debit cards are issued from the age of 13.

However, its less favorable aspects are:

  • Very low-interest rate.
  • Multiple savings goals require opening multiple accounts.
  • There are no ATM fee refunds on the checking account.

Capital One currently pays 0.30% APY (Total Savings Percentage). Although it is far from the highest rate you can earn on a youth account; the absence of a minimum or maximum balance makes it versatile.

  1. USAlliance Financial: Best for Young Children

If your child is under 8 years old and you are looking for a bank account for children, this is the ideal option to save on interest. The MyLife Savings account belongs to the alliance. In addition, this financial product offers an annual birthday bonus for pre-teen savers.

Regarding its main advantages and characteristics we have:

  • $10 “birthday bonus” paid each year up to age 12.
  • Highly competitive interest rate.
  • Possibility of moving to a checking account at age 13.
  • Your child can join the credit union for free.

Now, some of its cons are:

  • No ATM or debit card access until age 13.
  • Credit union membership is required for both parent and child.
  • Some accounts pay a higher interest rate.

This account is ideal for young savers. And, the fact that each child is rewarded with a birthday bonus makes this product something much more familiar. Currently, the APY (Total Savings Percentage) is 2.00%, being one of the highest in the market. This, with a balance of up to $500.

You should know that very few youth accounts currently pay more than 1%; so the earning potential here is significantly higher than most other options.

the alliance also offers MyLife Checking for Teens, which allows your child to improve their bank account as they get older. They can open a MyLife Checking account at age 13 and choose to receive a debit or ATM card at that time.

  1. Alliant: Best Choice for Teens

This financial entity offers a competitive interest rate, zero fees, and an excellent mobile banking application designed for children and parents. However, the best options are available after the age of 13. Which makes Alliant our pick for the best teen savings account.

Regarding its advantages and characteristics we have:

  • Mobile banking app that offers features for kids and parents.
  • Teen checking account with a debit card available at age 13.
  • The teen checking account pays interest and offers ATM fee refunds.

Among its less favorable aspects are the following:

  • Interest is only paid when the balance is $100 or more.
  • No ATM or debit card before age 13.
  • Some youth accounts pay higher interest.

Every time the account balance exceeds $100, Alliant will pay an APY  (Total Savings Percentage) of 0.55% and no maximum balance to earn that rate. On the other hand, the mobile APP allows parents to make recurring deposits into their child’s account and allows the child to control their balance, deposit birthday checks, and more.

Once your child turns 13, you can add an Alliant Teen checking account and ATM/debit card. This is one of the best youth deals available nationally.

  1. Spectrum: Best for Capitalizing on Interests

This credit union focuses on children’s long-term interests. The little ones can keep their savings account (and their respective interests) when they grow up to be young. A user who started their account as a child with Spectrum can keep it active until they are 21 years old.

This finance company offers an APY  (Total Savings Percentage) of 7% for account balances over $1,000. Therefore, we are facing one of the best offers on the market.

Spectrum stands out for:

  • Pay the highest APY available nationally in a savings account.
  • You can keep this account active until you are 21 years old.
  • Account-holders age 13 and older can apply for an ATM card

Spectrum Cons:

  • Checking accounts are not available to teens.
  • Joining Spectrum isn’t free for most people.
  • Parents must guarantee a minimum balance of $1,000 in the child’s account, otherwise, the APY will not be worth it and will be below 1%.

Comparison of Best Saving Accounts for Kids 2022

Next, we leave you a summary table with the children’s accounts that we mentioned in this count and their main characteristics…

Category/Winner Age limit Minimum Balance REPLY

(Percentage of Total Savings)

Special Feature
Capital one 8 to 18 years old. $0 0.30% First mobile APP
USA Alliance Ages 8 to 12 with teen benefits starting at age 13. $0 2% on the first $500. Annual Birthday Bonus of $10 up to 12 years old.
Alliant 8 to 18 years old. Teen benefits from age 13. $100 to earn interest 0.55% on balances over $100. Best Teen Checking Account with ATM Refund Possibility.
spectrum Up to 21 years old. $0 7% on the first $1,000 $10 opening bonus, $20 for $250 balance, $30 for $500 balance.

Remember that, before making a decision, you should compare options until you get the best child account that suits your little one’s needs.

Other data to consider before choosing a bank account for children are Fees, interest rates, high balances, availability of the mobile app, and possibilities to improve the account. Also, a relevant factor is the allowed age; this is in case you have a child who wants to keep their bank account for a long time.

Without a doubt, Capital One is our pick for the best bank account for kids. It offers an unparalleled mobile experience, with parental controls, the possibility of improving the account as the child grows, and much more. Now that you know the “most profitable options on the market”, the final decision is up to you.

Read More: What are the Advantages of Life Insurance

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