Learn & Grow

Best savings account for kids

Want to help your children build a strong financial future? Here’s what you need to know about opening a kids savings account.

October 8, 2026|6 min read

Summary

  • Opening a savings account for your child is a good way to help them build healthy money habits and start saving for future goals, like education, a first car or a home.

  • With options like savings accounts, CDs and money market accounts, you can choose an account that matches your family’s goals and how involved you want your child to be.

  • Learning about account requirements and ownership rules can help you find a savings option that fits your child’s needs and your financial plans.

  • By making regular deposits and talking about money along the way, you can help your child build confidence and work on skills they’ll use for years to come.

Children grow up fast—so it’s never too soon for family and friends to take steps to help them reach their greatest potential. One way to do that is by opening and funding a savings account for a minor, who is  a person under the age of 18. It’s a chance to teach them the value of saving long before they’ll ever need the money. And it’s also a great way to build a strong financial base. Over time, money from that savings account might help them pay for college, their first car or even their first home.

Before opening a savings account for a minor, it’s helpful to understand how custodial, or guardian, accounts work and what they mean for you and your child. These accounts are opened and managed by an adult, such as a parent or guardian, until the child is old enough to take over. Our guide can help you find the best savings account for kids and start building a financial base for your child.

What to look for in a savings account for a child

Not all accounts offer the same features or benefits. Understanding your options can help you choose an account that fits your goals and gives your child a strong start on their financial journey.

The best savings account for kids depends on your unique situation and how you want to save for your child’s future. No matter which account option you choose, a higher interest rate can help you get more from your savings over time.

Another option is to open a joint savings account shared between yourself and another parent or guardian of the child. For any custodial account, you’ll want to make sure that the child’s parents know about the account. Why? The child may receive a 1099 form at tax time, which might ask that the interest earned on the account be reported to the IRS.

If you want a child to learn more about money, consider a custodial account that lets them be a part of the savings process. You’ll manage the account until the child takes control, usually at age 18 or 21, depending on the state.

A different option is to open a certificate of deposit (CD) or a money market account as a custodial account. A CD allows you to lock in an interest rate that can be even higher than that of a savings account. A money market account, meanwhile, offers you a competitive interest rate like a savings account and sometimes even a debit card for easy access to the money.

What you need to open a savings account for a child

The first step to applying for a custodial account is to select the type of account you’d like to open and then contact your bank. When applying, you’ll need to give personal information for both you and your child, including:

  • Names, dates of birth, addresses and contact information.

  • A Taxpayer Identification Number (TIN), which is used by the IRS to identify individuals or entities for tax purposes. For most people, this is their Social Security number.

How to get the most out of a savings account for a child

Want to open a savings account for a child that will have a lasting impact? The key is to make deposits regularly. A savings account can grow a lot over time through compound interest. The best way to boost that interest is to deposit funds into the account regularly over the years.

Another way to make a financial gift be meaningful is to involve the child in the account to teach them about money and to help them grow smart financial habits. Take time to show them how their savings are growing by going over the account statements together. By including them in the account, making them part of the process will help them understand the value of saving and the financial benefits of planning ahead.

FAQ: Best savings account for kids

There’s no perfect age to start saving for your child. Opening an account early can give their money more time to grow while creating opportunities to teach valuable lessons about saving, spending and making smart financial decisions. Even small deposits over time can help build good habits and prepare them for future goals.

The amount needed to open a savings account for a child depends on the financial institution and account type you choose. Some accounts may ask for a minimum deposit, while others allow you to get started with a smaller amount or no minimum balance. Look over the account requirements and fees to find an option that works for your family.

When choosing a savings account for a child, think about things like interest rates, fees and account requirements like minimum balances. Look for an option that makes saving simple and helps your child learn about money. The right account can help create good habits while helping savings grow over time.

The best savings account for kids depends on your family’s goals and the money habits you want to help your child build. Look for features like a competitive interest rate, low or no fees and tools that can make saving fun while helping children learn about money and financial responsibility.

Key takeaways: Best savings account for kids

Opening a savings account for your child is a simple way to help them build healthy money habits and create a strong financial foundation for the future. Here are a few things to keep in mind:

  • Explore different options to find the best savings account for kids that fits your goals and your child’s needs.

  • Make regular deposits to help savings grow and take advantage of the power of compound interest over time. This is when you earn interest on top of interest you’ve already earned.

  • Include your child in talks about money to help them learn how to save, spend and manage money with confidence.