Opening a savings account for your child is one of the most effective ways to teach money habits that last a lifetime. The right account earns a competitive interest rate, has no fees that eat into small balances, and makes the banking experience educational and engaging. Here are the best savings accounts for kids in 2026.
Why Open a Savings Account for Your Child?
A dedicated savings account teaches your child the value of earning interest, setting goals, and delaying gratification. It gives them ownership over their money while you maintain oversight. And when they see their balance grow — even from birthday money or small chores — the habit of saving becomes real.
Types of Savings Accounts for Children
Custodial Savings Accounts
A joint account opened by a parent or guardian on behalf of a minor. The adult controls the account until the child reaches the age of majority (typically 18). These are available at most banks and credit unions, often with features designed to engage young savers.
UTMA/UGMA Custodial Accounts
These are investment accounts, not just savings. Under the Uniform Transfers to Minors Act or Uniform Gift to Minors Act, you can hold cash, stocks, and other assets. The child gains full control at 18 or 21 depending on the state. Earnings may be subject to the “kiddie tax.”
529 Education Savings Plan
Technically an investment account, a 529 is specifically designed for future education expenses. Contributions grow tax-free, and withdrawals for qualified education costs are not taxed. Not a traditional savings account, but worth considering alongside one.
What to Look for in a Kids Savings Account
- No monthly fees: Small balances can’t afford to lose $5/month to maintenance fees
- No minimum balance requirements — or very low ones
- Competitive interest rate: Online banks often pay 10-20x what traditional banks pay
- Parental controls: The ability to monitor transactions and set limits
- Educational tools: Apps, savings goals, or dashboards designed for kids
- Easy account transition: Can the account convert to a regular account when the child turns 18?
Best Savings Accounts for Kids in 2026
Alliant Credit Union Kids Savings Account
One of the top picks for kids. Alliant pays a competitive APY — one of the highest among credit union kids accounts — with no monthly fees and no minimum balance requirements. Children earn dividends monthly. At 13, kids can get a free checking account. Alliant is a digital-first credit union, so the online experience is clean and modern. Membership is open to anyone who joins a partner charity for $5.
Capital One Kids Savings Account
Capital One’s kids account earns a solid APY with no fees and no minimum balance. The parent links a Capital One checking or savings account and both parties can monitor the balance. There’s no physical branch experience for kids, but the mobile app is intuitive. Capital One’s 360 ecosystem makes it easy to transfer birthday money or allowance automatically.
USFirst Credit Union Youth Savings
Local credit unions often offer youth savings accounts with features that large banks don’t. USFirst and similar local credit unions frequently run savings incentive programs — matching a percentage of deposits or hosting contests to reward saving milestones. If you have a local credit union, check their youth accounts before defaulting to a national bank.
PNC “S” Is for Savings Account
Designed for kids 0 to 12, PNC’s S Is for Savings account features Sesame Street characters and an engaging mobile experience. The educational angle makes it particularly good for young children who are just learning about money. Monthly fees are waived when linked to a parent PNC account, and the app lets kids track their savings goals visually.
Bank of America Minor Savings Account
Available for children under 18 with a joint account holder. The monthly fee is waived for accounts linked to a parent’s Bank of America relationship. The advantage here is physical branch access — useful for families who want the child to walk into a bank and make deposits in person.
How to Make Saving Engaging for Kids
Set Specific Goals
Vague saving is boring. Help your child pick something concrete: a video game, a bike, a trip to an amusement park. Many kids accounts let you name savings goals. When children see progress toward something they care about, saving feels purposeful.
Match Their Deposits
Introduce them to the concept of a match by contributing $0.25 or $0.50 for every dollar they save. It mirrors how a 401(k) match works for adults and dramatically accelerates goal achievement.
Show Them Their Interest
When the bank pays interest, point it out explicitly. Explain that the bank is paying them to keep their money there. Even a few cents of interest is a teachable moment about passive income.
Give Them Some Control
As children get older, give them more decision-making authority. Let them decide when to withdraw for their goal. Teenagers can handle debit cards with parental monitoring. The objective is to gradually transfer financial responsibility before they leave home.
Tax Considerations
Investment income earned in a child’s custodial account may be subject to the “kiddie tax.” For 2026, the first $1,350 of unearned income is tax-free, the next $1,350 is taxed at the child’s rate, and anything above $2,700 is taxed at the parent’s rate. For standard savings accounts earning a few percent interest on small balances, this is rarely a concern. It becomes relevant for larger custodial investment accounts.
Bottom Line
The best kids savings account is one with no fees, a decent interest rate, and enough engagement tools to make saving feel rewarding rather than restrictive. Alliant Credit Union and Capital One are strong picks for purely online households. If in-person banking matters to you, PNC or Bank of America work well. Open the account, involve your child in deposits, and use it as an ongoing financial education tool. The habits formed now will outlast the account balance by decades.