Best Savings Accounts for Kids 2026
Our Top Picks
Ally Bank Kids Savings Account
Best OverallWhy we recommend it: High APY with no minimum balance and no fees. Parents maintain control while kids can track their savings. Ally's savings buckets feature lets kids organize savings by goal (college, car, etc.). Excellent mobile app for teaching financial literacy.
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Capital One Kids Savings Account
Best for BeginnersWhy we recommend it: No minimum age requirement — you can open an account for a newborn. No minimum balance, no fees. Automatic savings rules help kids build the habit. Lower APY than online banks but excellent for introducing young children to banking.
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Alliant Credit Union Kids Savings
Best Credit Union OptionWhy we recommend it: Credit union with competitive APY and a strong focus on financial education. Kids under 13 can open an account with a parent as co-owner. Alliant provides financial literacy resources to help teach kids about money.
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Frequently Asked Questions
What is the best savings account for a child?
Ally Bank's Kids Savings Account offers the best combination of high APY (4.20%), no fees, and no minimum balance. For very young children (under 5), Capital One's Kids Savings Account has no minimum age requirement. For credit union members, Alliant Credit Union offers a competitive 3.10% APY.
At what age can a child open a savings account?
Children cannot open bank accounts independently — a parent or guardian must be a joint account holder. Most banks have no minimum age requirement, meaning you can open an account for a newborn. The child typically gains full control of the account at age 18.
How much should a child have in savings?
There's no set rule, but a common guideline is to save 20% of any money received (allowance, gifts, earnings). Teaching the habit of saving is more important than the amount. Starting early with even $5–$10/month and showing kids how compound interest works can be a powerful financial lesson.
Is a kids savings account FDIC insured?
Yes. Savings accounts at FDIC-member banks (Ally, Capital One) are insured up to $250,000 per depositor. Accounts at NCUA-member credit unions (Alliant) are insured up to $250,000 by the NCUA. Your child's savings are fully protected.