Opening a savings account for a child or infant

  • A savings account is a great idea for any kid, regardless of age.

  • Kids should start saving early, and the best savings accounts offer interest and don't charge maintenance fees.

  • It's recommended that a parent or legal guardian do the account opening.

Learn about the best savings accounts
Look for a high-interest savings account. Side-by-side rate comparisons

To start young children off on the path to fiscal responsibility, opening a savings account can be an excellent first step. You should check books and television shows to see if your kid has heard of bank accounts. However, they might be ready for a savings account if they inquire about the origins of money or how to obtain their own.

Your child will gain valuable insight into the inner workings of financial institutions while having a safe place to store their birthday and allowance money in a savings account. To add to that, it allows their savings to accrue interest and grow over time.

In case you have any inquiries about kiddie savings accounts, we have the answers you need.

It's likely that your kid is old enough to benefit from opening a savings account. To open a savings account, a child usually needs their parents' or guardians' permission. This allows you to handle the family's finances until your kid is old enough to do so independently. Because of this system, there is likely no minimum age requirement for your child to open an account. Creating a baby savings account is also an option.  

Take a look at The top 5 kids' savings accounts, according to NerdWallet

The best savings accounts for children share a number of characteristics, including competitive interest rates. A standard account in the name of a parent or guardian, even if it isn't marketed to children, could be an option if the child does not have access to a bank account. Don't forget to watch out for these things:

Putting money aside is a good habit. Don't let service charges eat away at the money you put into your kid's account.

There is currently an average savings rate of 0.33% Take a look at some of the top national banks Rates of savings are even lower than zero. However, the yields offered by many credit unions and online banks are higher. An account that earns interest can help your kid's savings grow more quickly.

Look for a reliable website and other features like electronic statements and mobile apps that have high ratings in app stores. Benefits include accepting deposits from mobile devices and facilitating transfers between linked accounts.

SoFi logo

Online Banking and Savings from Social Finance

SoFi logo
APY

3.75% Direct deposit SoFi members can earn 3 Savings Accounts (including Vaults) Earn a 75% APY and Money Market Accounts Earn a 2% APY Bonus 50% APY on all checking account balances To be eligible for the 3% direct deposit bonus, no minimum deposit amount is required. Savings at 75% APY and 2 Checking account balances earn a 50% annual percentage yield. Individuals who are not set up for direct deposit will receive a monetary reward of Earn 20% APY on your checking and savings balances (including Vaults)! Variable interest rates can change at any time. As of 01/04/2023, these prices are accurate. You can get more information at http://www. sofi com/legal/banking-rate-sheet

Marcus by Goldman Sachs logo

Marcus, the Goldman Sachs Online Savings Account

Marcus by Goldman Sachs logo
APY

3.30% With no minimum balance requirement, you can earn the stated APY (annual percentage yield) of 3.30 percent. In order for an account to be kept open, there must be funds in it. APR accurate as of 12/21/2022

Services and features typically associated with checking, savings, and/or investment accounts are all rolled into one convenient package with these cash accounts. Institutions other than banks frequently provide cash management services.
These cash accounts are a hybrid product that provides features and functions of checking, savings, and investment accounts. Institutions other than banks frequently provide cash management services.
Wealthfront logo

Upon visiting Wealthfront.com

Banking on Wealthfront's Cash Account

Wealthfront logo
Betterment logo

Betterment's webpage

Reserve Fund for Promotion Expenses Not Related to Current Clients

Betterment logo
APY

3.75% As of 12/09/2022, the variable annual percentage yield is as follows:

CDs (which stand for "certificates of deposit") are a form of savings account that offer a fixed rate and term, typically at a higher interest rate than standard savings accounts.
Certificates of deposit (CDs) are a form of savings account that offer a fixed rate and term, typically with a higher interest rate than standard savings accounts.
CIT Bank logo

Certificate of Deposit CIT Bank

CIT Bank logo
Marcus by Goldman Sachs logo

Marcus High Yield CD by Goldman Sachs

Marcus by Goldman Sachs logo
APY

4.40% as of 01/25/2023, an annual percentage yield of 4.40 percent

Daily transactions involving cash are handled through checking accounts.
Financial transactions as common as deposits and withdrawals are handled through checking accounts.
SoFi logo

Using SoFi for Your Banking and Financial Needs

SoFi logo
APY

2.50% If a SoFi member deposits money into their account via direct deposit, they can earn a 3% bonus. There is a 7.5% APY on all savings accounts (including Vaults) and a 2% APY on all checking accounts. Checking account interest rates of 50% Three percent cash back bonus can be earned with any direct deposit amount. Seventy-five percent annual percentage yield on savings and two An annual percentage rate of 50% on all checking account balances Participants who don't use direct deposit will receive a 1 Twenty percent annual percentage yield on all balances in checking and savings accounts (including Vaults). You should expect interest rates to fluctuate. As of 01/04/2023, these prices are accurate. For more details, please visit http://www. sofi com/legal/banking-rate-sheet

Upgrade logo

Receipt of Upgraded Rewards

Upgrade logo
Current logo

Funds are 100% FDIC Insured

Deficit in the Present Account

Current logo
Chime logo

Insurance on Deposits from the Federal Deposit Insurance Corporation

Checking Account with a Chime

Chime logo
Axos Bank® logo

An Axos Bank® Reward Checking Account

Axos Bank® logo
APY

1.25% In order to qualify for taxable income, you must receive $1,500 or more in direct deposits each month. 40% APY Get 0 cash back when you make 10 purchases with your Axos Visa® Debit Card each month (minimum $3 each purchase) or enroll in Account Aggregation/Personal Finance Manager (PFM) in Online Banking. 30% APY To earn 0% interest from your Axos Managed Portfolios Invest Account, you must keep a daily average balance of $2,50 20% APY To earn 0% interest from your Axos Self Directed Trading Invest Account, you must keep a daily average balance of $2,50 20% APY You can avoid interest on your Axos consumer loan if you use your Rewards Checking account to pay the full amount due each month. 15% APY

Money market accounts have checking-like features and interest rates that are comparable to savings accounts.
Money market accounts have checking-like features and interest rates that are comparable to those of savings accounts.
UFB Direct logo

Most Reliable Money Market Account on UFB

UFB Direct logo
Discover Bank logo

Depositing Money in the Stock Market with Discover Bank

Discover Bank logo

Similar to opening a new account for yourself, opening a savings account for your child is a simple process. It is your responsibility as an adult to provide proper identification, such as a driver's license, passport, or other government-issued photo ID. You and your child'll need to give some basic information such as ages and SSNs (or other identifiers for tax purposes).

There may be an initial deposit requirement of $25 or more at certain banks. Some require no initial deposit at all.

If you don't think your kid is ready for financial independence yet, there's no need to rush into opening more accounts. However, if your kid is old enough to start making purchases from stores on a regular basis and can start practicing budgeting, a a bank card or mobile banking app designed specifically for children may be a good choice They function similarly to online checking accounts in that you can monitor your finances and make adjustments as needed. These are accounts that parents or guardians can open on behalf of their children, allowing them to monitor and limit their spending.

It takes time to form healthy financial habits, such as saving money and making wise purchases. One of the best ways to introduce these concepts to your child at a young age is to open a savings account.

Want to learn more? Explore Top Recommendations from NerdWallet's Online Wallet

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