A savings account for your child is a fantastic opportunity to help them learn the basics of managing money and get your child on the path towards financial prosperity. The Best Savings Accounts for Kids offer great rates of interest as well as a few fees similar to the best saving accounts designed for adult customers. Additionally, they have tools that allow parents to support their children to achieve their goals and see their money increase. These are the top saving accounts for children in 2022:
1. Alliant Credit Union of Kids Savings Account
The Kids Savings Account has a perfect score in our analysis. Even if your child is starting and hasn't got funds to deposit into the account, Alliant will start them out with $5 to meet the minimum deposit requirement. But any accounts that do not have at least a daily average of $100 aren't qualified to earn the 0.55 percent annual percentage yield.
If your child reaches 13 years old, they will be eligible to apply for an account with a Teen Checking Service through Alliant. It won't substitute for the Savings Kids account; rather, the child will have both accounts. Every checking account holder will receive a debit card that can be used to access the funds of both accounts.
Parents, grandparents, parents, or guardians can link their Alliant account to the Children Savings Account. It will allow you access to your child's balance on the account and an online check deposit. Additionally, the bank offers some financial education courses to help children learn to be more independent with their financial management.
2. USALLIANCE MyLife Savings for Kids
USALLIANCE provides the highest APY rate of 2% on accounts with balances of up to $500. This is great when you're starting with a savings account. If balances exceed the initial $500 and beyond, the APY decreases to 0.02 percent. To add value, however, the MyLife Savings program offered by the USAlliance for Kids includes $10 Birthday Bucks every year to celebrate children's birthday parties.
USALLIANCE Financial is a credit union. You'll need to be a member to establish an account. Membership is available if you live, work, or attend church in one of the Massachusetts areas, West Haven, Conn., or certain districts within New York. In addition, if an officer of the local or state government employee or retiree within New York counties and a member in more than 175 selected employee groups. If you don't reside in or work in those areas, you may join by joining any of the four other associations that are all free to join.
3. Capital One Kids Savings
This Capital One Kids Savings Account is a wonderful combination of an APY that is decent and educational functions that offer teenagers the chance to learn the art of financial management. The account is not just a holder of the interest of 0.30% APY provides your child with an online account to check the balance, depositing and tracking their expenditures. In addition, since an adult must serve as a joint account holder, The account also seeks to strike the right balance between independent learning and parental supervision.
You and your child can access the account using Capital One's easy mobile banking application. Additionally, Capital One also operates numerous branches, enhancing the online experience for those who prefer brick-and-mortar banks. Even if your family members are situated outside of Capital One's physical footprint, it's possible to open an account from any location if you're willing to manage your finances via the bank's website and mobile banking application.
4. Northpointe Bank's Kids' Savings Account
For teenagers and children with lots of money to save at the banks, it's difficult to secure a high-interest rate on everything as the highest APRs are restricted to the lowest balance levels. Northpointe Bank takes a different approach by trading fancy account features to offer a high-interest rate, not only on low balances but also on higher ones, making it our choice of the best savings account for kids who have large savings.
Similar to other rivals and other competitors, Northpointe's highest rate of 1.50 percent (as of April 20, 2021) is limited to the first $1,000 of an account for savings for young people. However, while other accounts fall too low APYs following reaching the limit, Northpointe offers a hefty 1.11 percent on balances between $1000 and $30,000. A balance of $5,000 will receive a blended rate of 1.19 percent APY, and even $10,000 could receive a blended 1.15 percent rate of APY.
While a few teens can save more than the $10,000 threshold or more, the Northpointe rate is competitive compared to nearly all other accounts for youth that pay 0.35 percent APY on any amount greater than $10,000. As an institution, Northpointe doesn't require meeting criteria for membership, which means opening an account is just one step simpler. However, it provides none of the other accounts for youth.
Conclusion
Savings accounts for children can be an educational and fun way to help your child save some of their funds and see the savings accumulate as time passes. Many banks don't offer high returns on children's account savings. Therefore, they don't expect to utilize these accounts to earn large returns or create an impressive nest egg for college. 529 plans are the best option to achieve that. A children's account can be a secure space for your child to save their funds and learn an excellent savings habit. If you're looking to make it easy for you to educate your child about budgeting, how it is done, and how to save money for specific objectives, opening a kids' savings account is an excellent opportunity for your kid to learn about personal finance and banking.
