Although online banking lets you do most basic banking tasks from home, some parents may want to give their children the chance to visit a branch. If that’s the case, Bank of America’s savings account for minors will be your best bet, as the bank has about 4,500 branches across the U.S.
The 0.03% APY is lower than the already dismal national average of 0.08%, but at least the account is free. The account can be opened for children younger than 18 at a branch with a $25 minimum deposit.
Boeing Employees Credit Union offers a kids savings account that has all the hallmarks of a good account, including no monthly maintenance fee and a low minimum deposit requirement.
Be aware that to open this or any other account at BECU you’ll have to be a member, and membership is mostly limited to residents of Washington state, as well as Boeing employees and their families.
If you qualify, you and your child could tap the Early Saver account’s 6.17% APY on the first $500 in deposits. A lackluster 0.10% APY applies to the rest of the savings, but the credit union’s tools and customer service are solid enough to warrant a spot on our list.
The account is available for kids 17 and younger. Once they turn 18, they can convert their kids savings account into a Member Advantage account, the credit union’s best savings option. Note that, as with the Early Saver account, once the balance tops $500, the account’s enticing APY falls to 0.10%.
Like the rest of Alliant’s offerings, its kids savings account doesn’t disappoint. The 1.60% APY can help children earn a decent return on their savings, but the account earns interest only if the balance is at least $100. The account is free as long as you enroll in electronic statements (otherwise there’s a $1 monthly fee for paper statements). The credit union will even pay the $5 opening deposit requirement.
But before you open this or any other account at Alliant, you’ll have to become a member. Membership requirements are broad: You need to either work or have worked for an eligible employer, be a member of a qualifying organization, live in a qualifying community in Illinois, be a relative of a member, or support an Alliant-affiliated nonprofit that helps foster children. Alliant doesn’t have many branches, but its website and mobile app are easy to use. The kids savings account is available to children 12 and younger. Parents of older children can open a standard Alliant savings account for them; it also comes with a 1.80% APY.
Capital One 360’s tech tools and easy-to-use website are crowd favorites, and its kids savings account is just as impressive. It comes with an above-average annual percentage yield of 1.00%, and the online bank doesn’t charge a monthly service fee or require a minimum opening deposit.
You and your child can create an automatic savings plan and establish goals to track and tweak as the savings grow. The account can be opened for anyone younger than 18. (To check out the bank’s other savings accounts, see our list of high-yield online savings accounts.)