Sarah Sharkey | Bankrate.com (TNS)
A savings account is a useful tool for teaching children the value of money and managing finances. But before opening a savings account for your child, it pays to look for some key features.
Here are some of the best savings accounts for kids, including those that require no minimum balances, charge no fees or provide ways to eliminate them and offer competitive APYs.
Best savings accounts for kids
Each of these savings accounts offers a worthwhile place to start a child’s banking journey. Check for account opening age restrictions, whether there are fees and what happens when the child reaches a certain age before opening a savings account for your child.
Alliant Kids Savings Account
The Alliant Kids Savings Account requires an initial deposit of $5, which the credit union will cover for you. The account pays 3.1% annual yield, but it earns no interest if the daily balance falls below $100. No monthly fee is charged as long as you receive e-statements instead of paper statements.
The account offers a mobile banking app that will allow you and your child to digitally monitor the account’s funds, as well as make deposits and review how much interest has been earned. Children 13 and older can apply for a Teen Checking Account with Alliant to continue their financial journey.
Alliant Credit Union is rated Bankrate’s best credit union, so it’s no surprise that this savings account offers practical features that will help children learn more about money.
Why we chose it: The Alliant Kids Savings Account earns a competitive yield for a children’s savings account.
Capital One Kids Savings Account
The Capital One Kids Savings Account charges no fee, has no account minimum and pays 0.3% APY on any balance.
In addition to earning some interest, the account offers a mobile app that allows children to check account balances, but the dual-access account requires adult supervision to transfer funds out of the account….
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