Best Kids’ Savings Accounts 2023

Alliant Credit Union’s Kids Savings Account offers a high APY and the ability to deposit an allowance directly into the account via their mobile app. It also allows kids to set savings goals and track their progress toward reaching them.

This provides you with the ability to teach your child about interest, setting savings goals, and how to use mobile apps to manage their money.

The one major downside of Alliant is their customer service. While credit unions tend to have smaller, more attentive teams, Alliant received a low Trustpilot rating, with most negative reviews citing poor customer service.

Process to Open an Account: First, apply for membership with Alliant. Then, open a separate membership and savings account for your child. You’ll have the option to set up recurring transfers to the Kids Savings Account via online banking or the mobile app.

Pros

• High APY
• No monthly fees
• Over 80,000 surcharge-free ATMs across the country; Comes with ATM card
• Alliant pays the required $5 deposit

Cons

• Only available to children age 12 and younger
• Joint owner must be an Alliant member
• Balances under $100 won’t earn interest

Alliant has strict membership criteria, which means qualifying might be tricky. To qualify, you must be one of the following:

• A current or retired employee from a partner business
• A spouse or immediate family member of a current or retired employee from a partner business
• A resident of Chicago, living in an eligible community
• A Foster Care to Success Member

Bethpage Federal Credit Union offers a simple, straightforward Student Savings Account, designed for young adults age 18 to 20. While the account doesn’t offer any particularly unique features, membership is more accessible than other credit unions.

Membership at Bethpage isn’t exclusive to specific individuals — anyone can become a member and open an account. The one downside, however, is that in-person branch locations are only in Long Island, New York.

Process to Open an Account: To open an account, apply for membership. Once accepted, open a traditional checking or savings account, then make a virtual appointment to open the Student Savings Account. You will need the following information:

• Social Security Number
• A valid ID (For minors, school IDs and library cards are acceptable)
• Parent/guardian license

Pros

• High APY
• No monthly fees
• Over 30,000 surcharge-free ATMs across the country; Comes with ATM card
• Accessible membership
• High-quality customer service
• Offers free virtual appointments

Cons

• Branch locations are only in Long Island, New York
• Balances over $1,000 receive a lower APY

The Bethpage Student Savings Account is geared toward young adults aged 18 to 20. However, younger children can enroll — they’ll just need a parent or guardian for joint ownership.

Once the member turns 21, the account will automatically convert to a traditional savings account.

M&T Bank’s Starter Savings Account is fairly standard, offering a low APY and no option to automatically convert the savings account once the child ages out. That said, they don’t require a minimum balance, making it perfect for children who might struggle with maintaining a particular balance.

They also allow custodians to control the level of access the child has to the account, which is unique in comparison to some competitors.

Process to Open an Account: To open an account, visit an in-person branch near you.

Pros

• No monthly fees
• Parents can choose how much access the child has to the account
• No minimum balance required
• Autosave feature
• Free virtual appointments to discuss a variety of financial topics

Cons

• Low APY
• Must open the account at an in-person branch
• ATMs and branches located in just 15 states

M&T Bank offers Easy Save, a simple autosave feature. This may be useful for custodians who’d like to send over a recurring transfer to their child’s account.

Once the child turns 18, the account can still be used. However, the account cannot be automatically transferred to the child. The custodian will need to close the account and distribute the funds to give the child full control.

Northpointe Bank’s Kids Savings Account offers a high APY, no fees, and an easy-to-use mobile banking app. However, accounts must be opened in person, and there aren’t branch locations in every state. If you are located near a branch, you’ll find great customer service and a simple banking experience.

Interest rates are also offered in tiers, leaving higher balances to receive lower APY. The rates are as follows:
$0.00 to $1,000 balance: 1.50% APY
$1,000.01 to $9,999.99 balance: 1.12% APY
$10,000.00+ balance: 0.35% APY

Process to Open an Account: To open a Kids Savings Account, visit an in-person branch.

Pros

• High APY
• No monthly fees
• Low minimum deposit
• Prizes for in-person deposits

Cons

• Balances over $1,000 receive a lower APY
• Must open the account in-person
• Not available in all states

Northpointe Bank has locations in just 21 states:

• Rhode Island
• New Jersey
• Delaware
• Pennsylvania
• Ohio
• Michigan
• Indiana
• Kentucky
• Tennessee
• North Carolina
• South Carolina
• Georgia
• Alabama
• Florida
• Minnesota
• Texas
• Colorado
• Utah
• Washington
• Oregon
• California

If you are located near a Northpointe Bank, however, it’s worth stopping in. Kids receive a prize from the treasure chest when they visit in person and make a deposit.

USAlliance Federal Credit Union offers the MyLife Savings for Kids account, designed for children under age 13. While the credit union has stricter membership requirements and the account doesn’t come with an ATM card, they offer a fairly competitive APY and a $10 birthday bonus for children under 13.

Process to Open an Account: If you’re already a USAlliance Financial member, simply apply online for a MyLife Savings for Kids Account. If you aren’t a member, you’ll need to apply for membership first, then open the account.

Pros

• High APY on the first $500
• No monthly fees
• No minimum deposit
• $10 bonus to celebrate the child’s birthday

Cons

• Balances over $500 receive a lower APY
• No ATM card
• Must be a USAlliance Financial member

USAlliance Federal Credit Union offers other bank accounts, like the MyLifeTeen Checking and the MyLife Savings Account. Once the child ages out of the MyLife Savings for Kids account, they can transition seamlessly to another USAlliance account.