If you want to teach your child about money and the importance of saving it, opening a bank account is a great first step. It is preferable to open a savings bank account because your child likely won’t need to use the account to pay for things often, plus, he or she can watch the money in the account grow with time. Here are the best savings accounts for kids:
Alliant children’s bank account
If you’re eligible to become a member of Alliant credit union, your children can enjoy their excellent child’s savings account offer. This account has no fees and a 1.35% APY, which is considered pretty high. You also automatically get $5 in the account once you open it and you can start earning interest when there’s $100 in the account. Your children can also monitor their account balance in the Alliant app, which all tech-savvy kids will surely appreciate.
Capital One - an excellent choice for a kid’s bank account
If you and your child love being able to do all banking online, you’ll love Capital One accounts. A Capital One savings account doesn’t have any minimum deposit requirements or fees, plus, it has a great APY, helping you earn interest quickly. The bank has a very easy-to-use app and lots of useful features, for instance, you can deposit a check into your account simply by taking a picture of it.
Chase Bank - the best savings account for teens
Unfortunately, Chase Bank doesn’t offer children’s bank accounts, but they have excellent options for teens and college students. If your child is younger than 18 or if your college student maintains an account balance of at least $300, they won’t be charged any service fees. While Chase Bank doesn’t offer a high APY, at only 0.1% the number is pretty low compared to other banks, their app has excellent features and resources to help your children learn about money.
PNC - the perfect bank account for younger children
If your main goal is to teach your young child about money and not to earn interest, PNC has an excellent children’s bank account called “S is for Savings”. A great thing about this account is that there are lots of online tools featuring Sesame Street characters to help your child along. Plus, their app is very user-friendly and there are no fees for account maintenance even though the APY is not very high.