Best Savings Accounts for Kids & Teens: GlobalFinMate
The top rate available on a savings accounts for kids is a remarkable 10.38% APY, which is offered by Spectra Credit Union. In addition, five additional accounts offer youth rates of 5.00% to 7.00% APY. All of those pay significantly more than you can earn with the best high-yield savings account for adults. But as you’ll see, banks and credit unions tend to limit the balance amount that can earn these stellar youth rates.
Savings accounts can be a rewarding way for your child or teen to learn about the value of money—and specifically about how to put some of it away for the future. You’ll find offers from our banking partners below, followed by our ranking of the youth savings accounts that either pay a very high rate with a balance cap or offer a competitive rate that can be earned on larger balances.
Tip
Also in the market for a great savings account for adults? Our daily ranking of the best high-yield savings accounts will take you to the Top 15 rates that are available nationwide.
Best Kids and Teen Savings Account Rates
| Credit Union | APY Rate | Balance Requirement |
|---|---|---|
| Spectra Credit Union | 10.38% APY | On first $1,000 |
| Chevron Federal Credit Union | 7.00% APY | On first $1,000 |
| BECU | 5.38% APY | On first $500 |
| Genisys Credit Union | 5.12% APY | On first $500 |
| FourLeaf Federal Credit Union | 5.00% APY | On first $1,000 |
| Service Credit Union | 5.00% APY | On first $500 |
| Alliant Credit Union | 3.10% APY | On any balance above $100 |
| Capital One | 2.50% APY | On any balance |
| USAlliance Financial | 2.00% APY | On first $500 + “birthday bucks” |
Our best picks for kids and teen savings accounts are listed below in order of annual percentage yield (APY). As you’ll see, the accounts paying the highest rates offer those APYs on balances up to either $500 or $1,000. We’ve included two additional accounts that pay much lower rates but on all balances, which may better suit children who have savings in excess of the $500 and $1,000 balance caps.
Spectra Credit Union, Brilliant Kids Savings – 10.38% APY
- Age limits: Through age 17
- Rate and maximum balance: 10.38% APY on first $1,000
- Minimum balance: None
- Monthly maintenance fee: None
- ATM card available: Yes for those age 13 and up
- Overview: Established in 1946, Spectra is headquartered in Alexandria, Virginia. Anyone in the U.S. can join the credit union by agreeing to a free one-year membership in the nonprofit American Consumer Council and holding at least $5 in a savings account.
- Rate verified as of May 29, 2025
Chevron Federal Credit Union, MySavings Youth Account – 7.00% APY
- Age limits: Through age 21
- Rate and maximum balance: 7.00% APY on first $1,000
- Minimum balance: None
- Monthly maintenance fee: None
- ATM card available: Available to account holders age 13 and up
- Overview: Headquartered in Concord, California, Chevron Federal Credit Union was established in 1973. Anyone can join Chevron Federal or Spectrum (see note below) by agreeing to a free one-year membership to the Financial Fitness Association and keeping $25 or more in a savings account.
- Note: Chevron Federal Credit Union also operates the separately branded Spectrum Credit Union, but both are the same institution and offer the same products. You can join one or the other (but not both).
- Rate verified as of May 29, 2025
BECU, Early Saver Account – 5.38% APY
- Age limits: Through age 17
- Rate and maximum balance: 5.38% APY on first $500, then 0.30% APY on higher balances
- Minimum balance: None
- Monthly maintenance fee: None
- ATM card available: Yes
- Overview: BECU stands for Boeing Employees Credit Union, which dates back to 1935. Anyone nationwide can join the credit union by making a $1 donation to the BECU Foundation.
- Rate verified as of May 29, 2025
Genisys Credit Union, High Yield Youth Savings Account – 5.12% APY
- Age limits: Through age 18
- Rate and maximum balance: 5.12% APY on first $500
- Minimum balance: None
- Monthly maintenance fee: None
- ATM card available: Yes
- Overview: Genisys Credit Union was chartered in 1964 and is headquartered in Auburn Hills, Michigan. Anyone can join Genisys by making a $5 donation to the Arthritis Foundation or the Paint Creek Center for the Arts and keeping at least $5 in a member savings bank account.
- Rate verified as of Jan. 31, 2025
FourLeaf Federal Credit Union, Savings Accounts for Kids– 5.00% APY
- Age limits: Through age 20
- Rate and maximum balance: 5.00% APY on first $1,000
- Minimum balance: $5
- Monthly maintenance fee: None
- ATM card available: Yes
- Overview: FourLeaf Federal Credit Union is headquartered in Bethpage, New York, where it was founded in 1941 to serve employees of the Grumman aerospace plant. Anyone can join FourLeaf by opening a savings account with at least $5.
- Rate verified as of March 3, 2025
Service Federal Credit Union, Primary Savings Account – 5.00% APY
- Age limits: Any age; children are offered the same Primary Savings Account as adults
- Rate and maximum balance: 5.00% APY on first $500
- Minimum balance: $5
- Monthly maintenance fee: None
- ATM card available: Yes
- Overview: Headquartered in Portsmouth, New Hampshire, Service Federal Credit Union dates back to 1957. Anyone is eligible for credit union membership by agreeing to a free one-year membership to the American Consumer Council and keeping $5 or more in a savings account.
- Rate verified as of Jan. 31, 2025
Alliant Credit Union, Kids Savings Account – 3.10% APY
- Age limits: Through age 12
- Rate and maximum balance: 3.10% APY if the account has a balance of at least $100, with no maximum cap for earning 3.10% APY
- Minimum balance: No minimum, but interest is only paid if the average daily balance is at least $100
- Monthly maintenance fee: None
- ATM card available: Yes
- Overview: Headquartered in Chicago, Alliant was founded in 1935, originally to serve employees of United Airlines. Today anyone can join Alliant by agreeing to a contribution being made in your name to the Alliant Credit Union Foundation.
- Rate verified as of Jan. 31, 2025
Capital One, Kids Savings Account – 2.50% APY
- Age limits: Through age 17
- Rate and maximum balance: 2.50% APY on any balance
- Minimum balance: None
- Monthly maintenance fee: None
- ATM card available: No
- Overview: Capital One is the eighth-largest U.S. bank by assets, offering various banking products online to customers nationwide.
- Rate verified as of Jan. 31, 2025
USAlliance Financial, MyLife Savings for Kids – 2.00% APY
- Age limits: Through age 12
- Rate and maximum balance: 2.00% on first $500, but child receives a $10 birthday deposit each year through their 12th birthday
- Minimum balance: None
- Monthly maintenance fee: None
- ATM card available: No
- Overview: Established in 1966 to serve IBM employees, USAlliance is headquartered in Rye, New York. Today anyone can join USAlliance by agreeing to a free membership in one of five USAlliance partner organizations and keeping at least $1 in a savings account.
- Rate verified as of Jan. 31, 2025
FAQs
1. Why are kid’s savings rates so much higher than adult rates?
Banks and credit unions view youth accounts as “loss leaders.” By offering an unsustainable 10% rate on a small amount of money, they hope to gain a lifelong customer. They limit the balance (usually to $500 or $1,000) to keep their own costs manageable.
2. Can my child open an account alone?
Generally, no. For children under 18, a parent or legal guardian must typically be a joint owner or custodian. If the teen is 13 or older, many institutions allow them to have their own ATM card and mobile app access, but the adult remains legally responsible for the account.
3. What happens to the interest rate once the balance exceeds the cap?
Most high-yield youth accounts use a “stepped” interest model. For example, you might earn 5.38% on the first $500, but any dollar over that amount earns a much lower “standard” rate (often as low as 0.05% to 0.30%).
4. Do I have to pay taxes on my child’s interest earnings?
Yes, but there is a threshold. In the U.S., the first portion of a child’s unearned income (interest) is typically tax-free, and the next portion is taxed at the child’s rate. If interest exceeds certain limits (often referred to as the “Kiddie Tax”), it may be taxed at the parent’s higher tax rate.
5. What is the difference between a “Kids Savings Account” and a “Custodial Account” (UTMA/UGMA)?
- Kids Savings Account: A standard joint savings account. The child can often access the money with parental supervision.
- Custodial Account (UTMA/UGMA): The money legally belongs to the child, but is managed by the adult. The funds can only be used for the benefit of the child, and the child gets full control once they reach the age of majority (18 or 21).
Key Takeaways on Youth Savings Accounts & Balance-Cap Strategy
The youth savings market in 2026 remains highly competitive, with Spectra Credit Union leading the pack at a staggering 10.38% APY. However, the primary takeaway for parents is the “Balance Cap Strategy.” Since most top-tier rates apply only to the first $500 or $1,000, these accounts function best as “starter” accounts to get kids excited about seeing their money grow. For families with larger savings (e.g., from inheritance or long-term gifting), a tiered approach is best:
- Primary Tier: Open a high-yield youth account (like Spectra or Chevron) to capture the 7%–10% rate on the first $1,000.
- Secondary Tier: Move excess funds into an account like Alliant Credit Union or Capital One, which offer competitive rates (2.50%–3.10%) on the entire balance without restrictive caps.
