Opening a savings account for your child or grandchild is a great move for several reasons. Give your child a head start on their financial endeavor by not only preparing them for the future, but teaching them important money management skills at a young age.
Besides starting a college fund, a savings account offers a great resource to start teaching good financial habits. Keep reading to see our list of best savings accounts for kids.
For those of you who are interested in opening a new banking account, be sure to check out great promotions from banks such as HSBC Bank, Chase Bank, Huntington Bank, Discover Bank, TD Bank, BBVA Compass Bank or CIT Bank.
 |
 |
What To Look For?
When looking for a savings account for your child their are several criteria that you should look into before opening account:
- Competitive annual percentage yield (APY):
- Accounts should demonstrate the rewards you can get by saving your money, and a competitive interest rate helps achieve that objective.
- Low fees:
- Kids don’t need to lose their money to fees, so finding an account with zero fees is important.
- Low minimum deposits:
- Most kids don’t have a large amount of money to save when they first open an account. Having a low minimum deposit requirement can help them get started quicker.
- Wide reach:
- Banks and credit unions need to be available to a large geographic market, with extra points for physical locations where kids can go and deposit cash and coins.
- Educational tools:
- Savings accounts that are geared to kids should have some educational tools to help them learn about what it takes to achieve financial success.
Top Kids Savings Accounts
Capital One
A kids Savings Account from Capital One offers a 1.00% APY, regardless of how much money is in their account. There are no monthly fees associated with this type of account.
CIT Bank
If you are looking for a savings account with a high interest rate and minimum requirements you may want to check out the CIT Bank Savings Builder Account.
Although it’s not specifically for kids or teens, the account offers a high rate or 2.40% APY as long as you meet a monthly deposit of $100.
If you are interested give them a call or visit your local branch to see how you can get started!
Citizens Bank
If you are looking for a long-term bonus Citizens Bank might be the one for you. Their CollegeSaver Account rewards you with a $1,000 bonus after making a deposit every month until your child’s 18th birthday. To qualify, your child must be under 12 years old.
Alliant Credit Union
Alliant Credit Union ranks rather nicely for Kids Savings Accounts. It is especially beneficial if you are trying to start an account for a younger kid under the age of 7. The APY rate is a high 2.10% as long as you keep an average daily balance of $100.
Another benefit Alliant provides, is that when your child turns 13 they are eligible for a Teen Checking Account. This doesn’t mean the Kids Account will go away. You will still have access to both accounts and it will be a smooth transition as your child continues to get older.
Conclusion
Parents always say it’s crazy how fast time flies when it comes to their kid growing up. Before you know it your child/grandchild will be on their way to make a difference in the real world. It can be scary sometimes to think of the future for your child. However, a Savings Account is one of the many ways to prepare them for financial success.
We have compiled a list of some of the best Youth Savings Accounts. However, it is not a complete list. There are a lot of great accounts out there and it may require some extra time to research. Our hope is that you find the perfect account that fits your needs!
Additionally, If you are interested be sure to check out our list of bank bonuses and CD rates!
