Top Three Savings Accounts for Children Under Age 18.

When it comes to opening a bank account for your child, a checking account should be their first choice. However, some parents opt for a kid-friendly prepaid debit card as an alternative. Although it's not technically a bank account, it can offer similar basic features.

After opening a checking account and teaching your child the importance of spending less than they earn, consider opening a savings account for them. This will provide them with a safe place to protect their money and to build up an emergency fund or savings for long-term goals.

To help you choose the best savings account for your child under the age of 18, we have evaluated dozens of U.S. banks and selected a handful of the best options based on specific criteria. Some criteria include minimum age requirements, competitive interest rates, monthly service fees, the availability of overdraft protection, and educational resources.

All of the savings accounts on our list have at least one standout feature, making them the best options for your child's future financial success. Choose one that aligns with your child's savings goals and financial needs to set them on a path towards financial self-sufficiency.

Frequently Asked Questions About Kids Savings Accounts

Kids savings accounts operate similarly to adult versions. However, when searching for a child-friendly savings account, you may have some questions. Here are the answers to a few common queries.

Who Has Ownership of a Kids Savings Account?

The ownership of a kid-friendly bank account depends on the specific account and financial institution. Typically, a parent or guardian jointly owns the account with the child. This means that both parties have legal ownership, allowing them to deposit or withdraw funds from the account. However, accounts designed for kids under 13 may have adult ownership, with limited permission for the child to access the account's features.

Can Minors Open a Savings Account?

While minors may open a savings account, they often require an adult's participation in the account opening process. This may involve confirming that the adult is a joint owner on the account. Although some banks may still require in-branch account opening, this practice is becoming increasingly less common.

What Are the Costs of Kids Savings Accounts?

The best kids savings accounts typically have no monthly maintenance fees or service charges, and few hard-to-avoid fees. However, most savings accounts for children have fees for specific actions or events, such as wire transfers or overdraft protection transfers.

What Are the Limits on Kids Savings Accounts?

Kid-friendly savings accounts usually have limits on how much a child can withdraw per day, week, or month. Parents may also set custom transaction limits to adjust to their children's financial responsibility levels. While savings accounts are not designed for daily spending, kids' checking accounts may allow parents to set category or merchant-specific dollar limits.

Can Kids Keep Their Savings Account After Turning 18?

In most cases, yes. When a bank account has an adult joint owner, the bank may remove the adult's name when the child turns 18, leaving the child in full control of the account. Alternatively, the bank may convert the account to a different savings account with new features. While the joint ownership arrangement may continue, it typically has a time limit.

Final Thoughts

Opening a bank account is a significant milestone for kids to learn how to manage their money practically. A savings account with low fees removes traditional barriers to building wealth. A competitive yield incentivizes saving, and educational tools and calculators reinforce real-world financial lessons. Several excellent kids savings accounts are available on the market, and with the right account, your child can learn valuable finance skills early in life.