Stay in Touch
Subscribe to our exclusive mailing list and receive great stories from the Greatest Gift team
Oops! Something went wrong while submitting the form
Setting up a savings account for your child's future is more than just a financial decision.
It's an investment in their dreams.
You might be wondering if a savings account is the right choice, or how to pick the best one for you.
That's where our guide shines!
Learn more about Greatest Gift, the platform that makes it easy for loved ones to give money towards a child's savings and investments.
From big names like Capital One and Wells Fargo to modern options like Ally Bank or Greenlight, we’ve researched the best of the best.
You can open an account for a minor at any age.
Let's take a look at the top options out there.
Parents who are looking for a high return on their kid's deposits.
The Ally high-yield savings account offers one of the highest interest rates available for custodial savings accounts, truly owned by the child.
The innovative "savings buckets" feature helps manage savings for different goals.
Ally bank's high-yield savings account is an excellent option for parents who want a high return on their kid's deposits.
Earning high interest on your kid's savings is a great way to build generational wealth.
The bank was originally founded in 1919 as the General Motors Acceptance Corporation (GMAC).
It was rebranded as Ally Bank in 2009.
Kids accounts are set up as custodial accounts, owned by a minor and managed by an adult.
One standout feature is the "savings buckets", which lets you separate the money in the account into different sub-accounts.
This can be particularly useful for parents with multiple children.
Parents can set up one savings account for themselves, and have multiple buckets, one for each child.
That way the money is earmarked for the child, but it is not legally or officially owned by the child.
The parent gets to manage all the money in one convenient location.
The account is an online-only option, making it a convenient choice for those who prefer digital banking.
With its impressive interest rate, innovative features, and strong reputation, Ally's high-yield savings account is a top choice for parents looking to maximize their kid's savings.
Parents who want to give their children the experience of having their own bank account from a young age and are looking for a modern, user-friendly online platform.
Capital One offers a joint savings account specifically designed for kids, providing a great way to introduce children to the concept of saving money. With no fees or minimums and the ability to set up automatic allowance payments, it makes managing children's finances easy and hassle-free.
Capital One's Kids Savings Account is an excellent option for parents who want to teach their children about banking and saving money.
It’s a joint savings account, and requires an adult to open the account in their name and in the name of a minor customer.
Once the minor account holder turns 18, they become a joint holder with equal privileges as the adult joint holder, and their Kids Savings Account is automatically turned into a 360 Savings account.
The account provides a modern online experience that makes it easy for kids to learn to save.
Parents can set up automatic recurring allowance payments, giving their children a sense of responsibility and independence.
The interest rate is low compared to other options available in the market.
Parents interested in a higher return on their child's deposits might want to consider Capital One's High Yield Savings Account, but then the account won’t be officially owned by the child.
The Kids Savings Account is tailored for children. It provides an excellent opportunity for parents to teach their children about saving money while giving them a sense of autonomy in managing their funds.
The online experience allows kids to learn about banking and become familiar with managing their own account.
Parents who want to teach their kids about money management and saving while using an established bank with a focus on corporate social responsibility.
PNC's 'S' is for Savings account incorporates educational resources from Sesame Street to teach kids about money. The online platform uses interactive jars that kids can use to put their deposits in saving, spending, and sharing, making financial concepts easy to understand.
PNC's 'S' is for Savings account is a kid-friendly option that offers educational resources and a visually engaging platform to help children learn about money management through saving, spending, and sharing.
With a history of more than 170 years, PNC is one of the largest banks in the U.S.
The bank has a strong focus on corporate social responsibility and community development, which shows in some of the available resources.
This online platform, paired with Sesame Street's educational resources, provides an opportunity for children to learn about financial concepts in a fun and interactive way.
The account incorporates educational resources and uses interactive jars for saving, spending, and sharing to make financial concepts easy to understand.
There's no minimum deposit requirement, and the monthly service charge is waived for account holders under age 18.
With its educational features and established reputation, PNC's 'S' is for Savings account is a top choice for parents looking to introduce their kids to financial responsibility.
It's important to note that this account does not provide any return on deposits.
With the current high inflation rates, the lack of interest could be a drawback for those seeking to grow their savings over time.
Families looking for a credit union option with a decent interest rate and joint ownership for parents, grandparents, or guardians.
Alliant Credit Union offers a Kids Savings Account that boasts a competitive interest rate of 3.1%.
It's a solid choice for members of the credit union seeking a straightforward account for their children.
The Alliant Kids Savings Account is a decent option for members of the credit union seeking a kids' savings account with a relatively high interest rate.
As a credit union, Alliant is member-owned and operates with the best interest of its members in mind. This often translates to better interest rates and fewer fees compared to traditional banks.
The account offers a competitive interest rate of 3.1%, and members who opt for eStatements will enjoy no monthly fees.
However, as we’ve seen, other online-only banks can offer even better rates.
Accounts are set up as joint accounts, owned by a parent, grandparent, or guardian, and the minor.
The adult needs to be an Alliant member in order to set up an account.
Alliant Credit Union offers membership to over 150 organizations, making it one of the largest credit union memberships in the United States.
If you're not already a member, it's worth checking if you're eligible for membership through your employer, an organization, or even by becoming a member of a partner charity.
While there are some educational resources, they are limited.
The account is a solid choice for those who are already members of Alliant Credit Union and want a straightforward savings account for their children.
Parents who want their kids to have hands-on experience with money management.
Greenlight offers a unique approach to teaching kids about money management through a debit card and an accompanying app.
It's an excellent way for parents to give their kids a sense of autonomy and responsibility with their finances.
Greenlight provides a unique approach to teaching kids about money management with its debit card and app.
The app is designed as a chores and allowance app. Parents can assign chores and set allowances. Kids and teens can choose how to spend, save, and invest their funds.
It's designed for parents who want their kids to gain hands-on experience with managing money.
The account offers a savings rewards feature that pays out interest (with rates depending on your account level).
However, the interest might not necessarily offset the cost of membership, especially at the higher tiers.
It does offers a learning experience.
The account can be used as a digital piggy bank that kids use to manage their own savings.
For example, at the highest tier of $14.98 per month ($179.76 per year), even with a 5% interest rate, you would need to have a balance of at least $3,595 to break even on the membership fee alone.
It's best suited for parents who are more interested in the educational benefits of the product rather than the interest earned on deposits.
Parents who are eligible for membership in Spectrum Credit Union and are looking for a high-interest savings option for their children, especially for balances up to $1,000.
Spectrum Credit Union's kids savings account offers an exceptional interest rate of 7.00% APY on account balances up to $1,000. They provide comprehensive educational tools to teach children about money management.
Spectrum Credit Union's kids savings account is a great option for parents eligible for membership.
With a high interest rate of 7.00% APY on the first $1,000 in account balances, Spectrum's offering stands out as a top-tier option.
Founded in 1973 as Bechtel Employees Federal Credit Union, Spectrum has a long history of serving its members.
Although the educational materials offered may be a bit outdated, they are still comprehensive and offer valuable information for teaching children about financial management.
This account is particularly suitable for parents looking for a high-interest rate for their child's initial savings.
It's worth noting that children likely don't need more than $1,000 in savings.
If you have more than that amount set aside for your children, you should consider setting up investments for your child, like a UTMA account or 529 plan, which may offer more long-term growth potential than a savings account.
Parents seeking a savings option from a prominent national bank with resources to teach responsible financial decisions.
Wells Fargo's long-standing reputation as one of the "big four" banks in the U.S. ensures nationwide accessibility and reliability. Additionally, their "Hands on Banking" program provides educational tools beneficial mostly parents and adults.
Wells Fargo is one of the big players in the banking industry, ensuring a strong sense of stability for your funds.
With its vast experience, your child's savings are in safe hands.
That said, the interest returns are minimal. You will probably get a bigger return at one of the other options we reviewed.
If you're considering opening an account, be prepared for a branch visit.
You have options when it comes to account types: either joint or a custodial account owned by the minor.
The bank does offer some financial education resources, but they aren't majorly tailored for kids.
Aspiration's hallmark is its eco-friendly initiatives, planting trees with purchases and offsetting carbon emissions.
Notably, they don’t fund the fossil fuels sector.
This product comes in the form of a debit card, split between spend and save account balances.
It isn’t crafted for children, but for eco-conscious parents wanting to safeguard both savings and the planet for their kids, it might be of interest.
Impressively, with $500 in debit card spending, earnings can go up to 3% monthly.
Marcus stands out for its high-interest rates on savings accounts.
An exclusively online platform, its interface promises user-friendliness.
While they don’t offer children-specific accounts, parents can swiftly set one up online.
Money earmarked for children would not legally belong to them, but a unique feature lets parents nickname accounts, allowing for the creation of individually named accounts for each child.
Originating as a lending platform, SoFi branched out into savings accounts in 2022.
Their HYSA boasts commendable rates, yet lacks child-centric features.
While accounts are FDIC insured, SoFi's journey has had its bumps.
There were noted risk and compliance issues in 2017 leading to the CEO stepping down, and a run-in with the FTC resulting in a settlement in 2018.
Ensuring your child's financial well-being starts with choosing the right savings account.
Choosing the right bank is an essential step in opening a bank account for a minor.
The best savings account for your child should not only be a place to store money but also an avenue for learning and growth.
Tailor your choice to fit both current needs and future financial goals.
Here's what you need to consider when deciding on the best bank or savings account for your child:
The primary motive of a savings account is to grow money over time, and interest rates play a pivotal role.
It was Albert Einstein that said compound interest is the 8th wonder of the world.
Always opt for accounts that offer higher interest rates.
Always opt for accounts that offer higher interest rates.
These can significantly boost the money saved, especially if the plan is to let the funds sit and grow over many years.
Remember, even a small difference in interest rates can lead to substantial growth over time.
Life as a parent can be hectic, so the last thing you need is a complicated account management system.
Seek banks that offer a seamless and intuitive online interface.
The ability to easily open an account online is a huge plus
Platforms with engaging features can also make banking fun for kids.
The ability to easily open an account online, coupled with mobile apps for handy access, is a huge plus.
Choose institutions that prioritize user experience, ensuring you and your child can navigate effortlessly.
As guardians, having oversight on your child's financial activities is crucial.
Banks that provide comprehensive parental controls allow you to monitor and guide your child's spending and saving habits.
This ensures safety and also aids in teaching responsible financial behavior.
While savings is the primary goal, financial education can't be overlooked.
Institutions that offer resources on financial literacy for both children and parents are invaluable.
These tools not only aid in understanding savings but also introduce broader financial concepts.
It's a good idea to open a bank account that is a good fit for your child's age group. Different accounts cater to different age groups.
Institutions that offer resources on financial literacy for both children and parents are invaluable
For kids, it's a chance to grasp the importance of money management early on, while parents can continually refine their financial knowledge.
The costs associated with maintaining the account are paramount.
Different banks have diverse fee structures.
opt for banks with transparent, reasonable fee structures and minimums
Some might charge a monthly or yearly fee, while others charge based on specific transactions.
Consider if the bank requires a minimum balance to avoid these fees.
Always opt for banks with transparent, reasonable fee structures and minimums, keeping in mind that fees can erode savings over time.
Beyond the basic savings setup, some banks offer innovative auto-saving features.
These tools might round up daily purchases to the nearest dollar, transferring the difference to savings, or automatically move funds from checking to savings periodically.
These features can automate the savings process, making it easier to consistently grow funds.
In the age of digital finance, gifting too has seen a modern twist.
With platforms like Greatest Gift, you can easily set up a dedicated gifting page online. Instead of traditional gifts, friends and family can contribute financially, ensuring your child's future is well-funded.
Once set up, you can receive monetary gifts directly through this platform.
These contributions can then be seamlessly transferred to your child's savings account, providing a practical and meaningful way to celebrate milestones while securing their financial future.
Absolutely.
Opening a savings account for a child not only helps in building a financial cushion for their future but also introduces them to the concept of saving and financial responsibility.
It can be a foundational step in teaching money management and the value of compound interest.
Since there is no minimum age to open a bank account for a kid, you can open one today!
The best savings account for a child often depends on individual needs and preferences.
Factors like high interest rates, ease of use, parental controls, and educational resources play a pivotal role.
It's crucial to research various options, like the ones mentioned in this review, and decide based on your and your child's specific requirements.
Not sure how much to save for your child? Starting with a goal of $500 or $1,000 is a smart move.
Encouraging friends and family to give financial gifts for occasions like birthdays, holidays, or special events can be a sustainable way to add to the savings. Once you hit that mark, it's time to think bigger.
Maybe you're eyeing college tuition, a house down payment, an "adulting" fund for their future independence, or a fund for their first car.
For those loftier ambitions, tools like UTMA accounts or 529 plans can help that money grow.
Growing a child's savings account can be achieved through consistent contributions, taking advantage of high-interest rates, and exploring investment opportunities suitable for long-term growth.
Encouraging family members to give cash gifts during birthdays or special occasions, instead of traditional gifts, can also help boost the account balance.
Tax implications for a child's savings account depend on the account type and ownership:
Opening a savings account for your little one can be a game-changer.
It's not just about putting money aside.
It's also about building up a habit of saving early and often.
Having goals like saving for college, a first car, or even a special "just because" fund can make a big difference.
And with Greatest Gift, birthdays and holidays can be about more than just toys; they can help grow that savings account.
Remember, it's all about giving our kids a good start and teaching them valuable money lessons.
Happy gifting!
I love how easy it is to give a meaningful gift to the kids and tots in my life!
It means a lot to me that I can contribute to their future, and Greatest Gift makes the experience seamless and fun.
Alana S.
Our son just turned two. We created his gifting page with Greatest Gift and shared it on the birthday evite. The results were amazing! We received 12 gifts that will be going to his college fund and savings.
Love this platform.
Daniel A.
We have a 2-year-old and another baby on the way, and we love Greatest Gift’s discover section. I look forward to learning about the right financial tools to help build their future and set them up for success financially.
Hillan K.
Oops! Something went wrong while submitting the form
Offers are provided to you as a convenience. Greatest Gift does not endorse, warrant or guarantee the products or services available through the Offers (or any other third-party products or services advertised on or linked from our site), whether or not sponsored. Greatest Gift is not an agent or broker or otherwise responsible for the activities or policies of those websites. Greatest Gift may receive compensation from third parties which may impact the placement and availability of the Offers. If you elect to use or purchase services from third parties, you are subject to their terms and conditions and privacy policy.
