10 Best Long-Term Savings Accounts to Set Up for Your Children in 2025

Why it’s a great savings account for babies

• Online bank with solid reputation
• High APY and no fees
• Convenient online access and app

• Account can’t be in child’s name
• No extra perks for kids

The best savings account for your baby is one that will earn a high yield and have few fees. The Summit Savings account from Axos Bank checks all those boxes, but you can’t open this account in your child’s name.

Instead, you’ll open a Uniform Transfers to Minors Act (UTMA) account and name your child as a beneficiary. That means your child can’t manage the account themselves, but for a baby, that’s OK. At this stage in life, you’re likely just looking to grow their savings as much as possible.

Why it’s great for elementary age kids

• Boosted APY on first $500 in account
• $10 in birthday bucks each year
• Automatic transfer to a teen or adult account at age 13

• Minimal interest for balances greater than $500
• Lesser-known institution

This account stands out for a boosted APY on the first $500 in the account. After that, the interest rate is paltry, but the account makes up for that by depositing $10 in birthday bucks each year.

That can make the USALLIANCE Financial MyLife Savings for Kids a solid option for balances up to $1,000. Designed for elementary age kids, at age 13, the account will transition to either a MyLife Teen Checking or regular MyLife Savings.

Why it’s great for high school students

• Available up to age 20
• Provides ATM access
• Teens age 13 and older can access mobile app

• High APY only offered on first $1,000 of account balance
• Only has branches in New York

FourLeaf Federal Credit Union has a small physical presence, but anyone can join online with a $5 minimum deposit. The FourLeaf Student Savings Account is one of the best savings accounts for teenagers, providing an ATM card and access to the FourLeaf Digital Banking app.

Why it’s great for young adults

• Combines checking and savings
• Intuitive mobile app for managing money
• Users can set savings goals and round up transactions to save more

• Direct deposit required for highest APY
• Newer banking option with no branches

Your child’s banking needs change as they age, and by the time they graduate high school, they will undoubtedly need a checking account too. For that reason, Chime is our choice for the best savings account for young adults.

The Chime checking and savings accounts go hand in hand. Young adults who use Chime can set savings goals and track them in the Chime app.

Why it’s great for small balances

• High APY on first $500 in account
• Online and mobile banking for children ages 13 and older
• Online, mail and video banking applications accepted

• Only branches are in Washington State
• Parents will need to become BECU members

Some children (and their parents or guardians) are looking for a place to park a smaller amount and let it grow for several years. In that case, the BECU Early Saver Account is one of the best savings accounts for kids. It offers a stellar APY, but only for the first $500 of the account balance. After that, you won’t earn much.

BECU is a credit union in the greater Seattle area, so it may be best for Washington State residents. However, its website notes that anyone may be eligible to join by making at least a $1 donation to the BECU Foundation.

Why it’s great for grandchildren

• Grandparents can open a joint account with a grandchild
• Option for supplemental accounts for savings goals
• Kids can manage account with Alliant mobile app

• Average daily balance of $100 needed to earn highest APY available
• Account limited to children 12 and younger

If you are looking for the best savings account for a grandchild, consider the Alliant Kids Savings Account. You’ll need to open your own account at Alliant first, but then you can link a joint account with your grandchild. It’s easy to transfer money to their account and help them track progress toward saving goals.

If grandparents want to contribute to a child’s savings without complicating taxes or ownership, I recommend contributing at or below the annual gift tax exclusion amount, either into a UTMA/UGMA account or into a savings account held in the parent or guardian’s name with the child listed as the beneficiary.

Erin Kinkade , CFP®, ChFC®

Why it’s a great hassle-free long-term savings account for a child

• Straightforward savings option
• Parents can create multiple Kids Savings Accounts
• Automatic transfers can be set up for allowance

• APY not as high as other institutions
• Few perks for kids

If you want a “set it and forget it” account, try the Capital One Kids Savings Account. There are no frills here, just a solid APY that requires no minimum balance to earn interest. Tech-savvy kids will also appreciate having the opportunity to watch their money grow using the Capital One Mobile app.

Why it’s great for working teenagers

• Boosted APY with direct deposit
• Combines checking and savings
• Special welcome offer through January 31, 2026

• APY is reduced after 6 months
• Must be 18 to open account

Older teens with jobs should check out SoFi Checking and Savings. If they set up direct deposit, that opens the door for them to earn a six-month boost in the account’s already high APY.

SoFi Checking and Savings will also let teens with direct deposit access their money up to two days early, if needed. You can easily manage the account within the SoFi app.

Why it’s great

• Current APY more than two times that offered elsewhere
• Offers access to educational lessons about money management
• Downloadable activity book available

• High APY only available on first $1,000 of account balance
• Parents must join Spectra Credit Union

The Spectra Credit Union Brilliant Kids Savings account offers one of the highest APYs we’ve seen. However, that only applies to the first $1,000 in an account, so once your child’s savings exceeds that, you may want to open a secondary account elsewhere for them.

If you aren’t employed by one of the companies that has partnered with the credit union, you can become a member of Spectra by joining the American Consumer Council.

Why it’s great for investing

• Investing options starting at $1
• High APY on money not invested
• Interactive app with lessons and rewards

• Investing comes with risk
• Parents must have a Fidelity account

Investing is often the next step after saving, and the Fidelity Youth account is a top choice for kids to experience buying and selling in the market. The Fidelity app includes an option to exchange unused gift cards for cash that can be saved or invested, and parents can schedule allowance payments through the app.