Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Banking Personal Finance 10 Best Long-Term Savings Accounts to Set Up for Your Children in 2025 Updated Sep 24, 2025 13-min read Written by Maryalene LaPonsie Written by Maryalene LaPonsie Expertise: Personal finance, precious metals, investing, banking Maryalene LaPonsie has been writing professionally for more than 20 years, including 15 years specializing in education, healthcare, and personal finance topics. She graduated from Western Michigan University, where she studied political science and international business. She resides in West Michigan. Learn more about Maryalene LaPonsie Edited by Kristen Barrett, MAT Edited by Kristen Barrett, MAT Expertise: Student loans, mortgages, personal loans, home equity, investing Kristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, and has edited and written personal finance content since 2015. Learn more about Kristen Barrett, MAT Nearly a quarter of Americans have no emergency savings, according to a survey by Empower Annuity Insurance Company of America. That can be a recipe for stressful living, but it doesn’t need to be that way for your child. Start them off on the right financial foot by setting up a savings account for them at an early age and then contributing to it regularly. However, the best savings account for emergency funds isn’t necessarily what you want for your kids. Here’s a look at some of the best savings accounts for children, based on their age and your goals. AccountBest forAPYMin. balanceOther featuresVisit SiteBabies4%NoneParents can set up a UTMA account for minorsVisit SiteElementary age kids2% on the first $500$1$10 in birthday bucksVisit SiteTeens5.00% on first $1,000$5No overdraft feesVisit SiteYoung adults and college students3.75% with direct deposit, otherwise 1.25%NoneMust open a checking account to be eligible for savingsVisit SiteSmall balances5.12% on first $500, otherwise 0.30%NoneAnyone can become a BECU member with a donation of at least $1 to the BECU FoundationVisit SiteGrandparents3.10%$100 to earn interestCan be accessed using the Alliant Mobile AppVisit SiteHassle-free savings2.50%NoneNo monthly fees or balance requirementsVisit SiteTeens with jobsUp to 4.50% for first 6 months w/ direct depositNoneWelcome bonus of up to $300Visit SiteHigh APY10.38% on first $1,000, otherwise 0.05%$5Anyone can open a Spectra Credit Union account by joining the American Consumer CouncilVisit SiteInvesting3.96% for uninvested balanceNoneOption to exchange unused gift cards for cash to save or invest Table of Contents Axos Bank Summit Savings USALLIANCE Financial MyLife Savings for Kids FourLeaf Student Savings Account Chime BECU Early Saver Account Alliant Kids Savings Account Capital One Kids Savings Account SoFi Checking and Savings Spectra Credit Union Brilliant Kids Savings Fidelity Youth How to select an account How to open an account Axos Bank Summit Savings Best for Babies Learn More Why it’s the best for 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 APY4%Min. balanceNoneMonthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?YesATM card available?Yes 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. USALLIANCE Financial MyLife Savings for Kids Best for Kids Learn More Why it’s the best for savings account 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 APY2% on the first $500Min. balanceNoneMonthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?No ATM card available?No 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. FourLeaf Student Savings Account Best for Teens Learn More Why it’s the best savings account 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 APY5.00% on first $1,000Min. balance$5Monthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?YesATM card available?Yes 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. Chime Best for College Students Visit Site Why it’s the best savings account 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 APY3.75%Min. balanceNoneMonthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?YesATM card available?Yes 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. BECU Early Saver Account Best for Small Balances Learn More Why it’s the best savings account 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 APY5.12% on first $500, otherwise 0.30%Min. balanceNoneMonthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?NoATM card available?No 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. Alliant Kids Savings Account Best for Grandchildren Learn More Why it’s the best for savings account 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 APY3.10%Min. balance$100Monthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?NoATM card available?Yes 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. Capital One Kids Savings Account Best for Hassle-Free Saving Learn More Why it’s the best 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 APY2.50%Min. balanceNoneMonthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?NoATM card available?No 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. SoFi Checking and Savings Best for Teens With Jobs Learn More Why it’s the best savings account 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 APYUp to 4.50% for first 6 months w/ direct depositMin. balanceNoneMonthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?YesATM card available?Yes 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. Spectra Credit Union Brilliant Kids Savings Best for High APY Learn More Why it’s the best high-yield savings account for kids 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 APY10.38% on first $1,000, otherwise 0.05%Min. balanceNoneMonthly feesNoneMax. transactionsN/AOverdraft feeNoneChecking account available?NoATM card available?No 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. Fidelity Youth Best for Investing Learn More Why we recommend this account 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 APY3.96% for uninvested balanceMin. balanceNoneMonthly feesNoneMax. transactionsN/AOverdraft feeN/AChecking account available?NoATM card available?No 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. How to select the right account for your child The best savings accounts for kids aren’t one-size-fits-all. To find the perfect account for your child or granchild, consider the following: The child’s age: If you’re saving for a baby, account features such as a mobile app or ATM card are less important than earning interest in the long term. Meanwhile, teens may need to be able to access their money easily. How you prefer to bank: Are you comfortable banking online, or do you want your child to have the experience of going into a branch? Purpose of the account: Parents and guardians open kids’ savings accounts for different reasons. Some want to teach their children about money while others simply want to save for their future. How involved the child will be: The purpose of the account can influence how hands-on your child or grandchild is with its management. If you are trying to teach your kids about money, a kids’ savings account with an app might be best. However, if you’re just saving for your child’s future, it may be easier to open a high-yield savings account in your own name. Account transition process: Check with the bank or credit union to see what happens when the child ages out of the account. Will it automatically transition to a regular account, or will it require some work on your end? You may also want to consider whether you need something other than a savings account. For instance, if college savings is your goal, a 529 plan might be a better option. How to open a savings account for your child Opening a savings account for a child is relatively straightforward. At most institutions, you will follow these steps: Open an account for yourself at the bank or credit union. Open a savings account for your child. Depending on the type of account, you may be a joint owner, or they may be listed as a beneficiary. Make an initial deposit. Set up allowance payments or direct deposits. Some institutions will allow you schedule regular transfers from your account to a linked child’s account. Introduce your child to the account’s mobile app and online tools, if available and applicable to the child’s age. If you’re not interested in having your child manage their own account, or if your child is too young to be interested in apps and online tools, consider opening a high-yield savings account in your name. That will provide you with more banking options. Either way, when it comes to earning interest, time is money. So don’t wait to open an account and start saving for your child today. Safest Banks in the United States in 2025: Where to Keep Your Money Secure Recap of the best savings accounts for children AccountBest forAPYMin. balanceOther featuresVisit SiteBabies4%NoneParents can set up a UTMA account for minorsVisit SiteElementary age kids2% on the first $500$1$10 in birthday bucksVisit SiteTeens5.00% on first $1,000$5No overdraft feesVisit SiteYoung adults and college students3.75% with direct deposit, otherwise 1.25%NoneMust open a checking account to be eligible for savingsVisit SiteSmall balances5.12% on first $500, otherwise 0.30%NoneAnyone can become a BECU member with a donation of at least $1 to the BECU FoundationVisit SiteGrandparents3.10%$100 to earn interestCan be accessed using the Alliant Mobile AppVisit SiteHassle-free savings2.50%NoneNo monthly fees or balance requirementsVisit SiteTeens with jobsUp to 4.50% for first 6 months w/ direct depositNoneWelcome bonus of up to $300Visit SiteHigh APY10.38% on first $1,000, otherwise 0.05%$5Anyone can open a Spectra Credit Union account by joining the American Consumer CouncilVisit SiteInvesting3.96% for uninvested balanceNoneOption to exchange unused gift cards for cash to save or invest Article sources At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards. Empower, Are Americans Prepared for a Financial Emergency? Axos Bank, Summit Savings USALLIANCE Financial, MyLife Savings for Kids Alliant, Kids Savings Account FourLeaf Federal Credit Union, Student Savings Account Chime, Easy Savings Capital One, Kids Savings Account BECU, Early Saver Account SoFi, Checking and Savings Spectra Credit Union, Brilliant Kids Savings Fidelity, Youth Account About our contributors Written by Maryalene LaPonsie Maryalene LaPonsie has been writing professionally for more than 20 years, including 15 years specializing in education, healthcare, and personal finance topics. She graduated from Western Michigan University, where she studied political science and international business. She resides in West Michigan. Edited by Kristen Barrett, MAT Kristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, and has edited and written personal finance content since 2015.