When it comes to the best bank accounts for kids, there are plenty.  Teaching finances to kids may seem like a lost cause but starting out when they are young is key to helping them successfully move towards financial independence as they get older.  When you teach kids about money and open a bank account for them, you are reinforcing some great lessons that they will take with them for the rest of their lives.

What it will teach them:

  • Basic banking concepts like adding and withdrawing funds.
  • How basic budgeting works.  It will show them how to not spend more than they earn.
  • The importance of saving, even it is just a few dollars here and there.
  • To start saving for long term goals like a car and college.

Joint vs. Custodial Bank Accounts

Joint Bank Accounts

Since children can’t have an account solely in their name, you can open a joint banking account.  You will be in charge of the funds and depending on their age, you may consider having a spending limit.  This is one of the best bank accounts for kids because it is good for day-to-day expenses and a vehicle for savings.  For long term savings goals, a high-yielding joint savings account is a smart option.

Custodial Bank Accounts

Custodial accounts are the best bank accounts for kids looking to save for long term goals, such as higher education.  Deposits are cash only and they are set up by the parent or other legal guardian along with a minor.  The custodian (parent) is in charge of the account until the minor reaches the legal age of majority.  The custodian acts as a fiduciary, which means they manage the account in the minor’s best interests. Furthermore, the minor cannot access the funds in the account without the custodian, so this would not be appropriate for day-to-day use.

Here are five of the best bank accounts for kids


Checking accounts


kids bank accounts


Capital One

 bank accounts for kids



Capital One Financial offers a teen checking account that has no fees and no minimum dollar amount.  The account pays out 0.10% annual percentage yield.  This account is especially helpful since you can do routine transactions like check deposits and transfers from a the Capital One app on your mobile device. In addition, parents interested in tracking account activity can elect to receive text notifications for every transaction.

Wells Fargo

 bank accounts for kids


Wells Fargo has a Teen Checking account that has a $25 initial deposit amount but does not have any maintenance fees. This checking account allows parents to be notified of any transaction via text or email. In addition parents can set limits on debit card spending and account withdrawals. Account also offers for teens to learn money management . There is mobile access available in banking and fraud monitoring is also provided.

Chase Bank

 bank accounts for kids

If you have a teen in high school between the ages of 13 and 17, the Chase High School Checking Account is it good fit . This checking account offers options like ways to track account activity and balances . It also offers mobile banking  as well as online bill paying and account alerts. There does have to be an adult checking account linked to this account.  The monthly service fee is waived for the initial 5 years of college or at least one direct deposit needs to be made into the account every month.

Savings accounts

bank accounts for kids

Alliant Credit Union Kids Savings Account

bank accounts for kids

Alliant Credit Union offers a kids savings account that is perfect for younger kids whether they get an allowance or not.  If your child does not have any money to deposit yet, Alliant will start you off with $5 to cover the minimum opening balance requirement. With that being said, you do have to maintain a $100 average daily balance or you will not be eligible how are the 0.65% APY.  Once your child reaches 13, they will be able to apply for Alliant’s teen checking account. This is not meant to replace the kids savings account as your child should maintain both accounts.

When they open this checking account, they will be given a free debit card that they will be able to use to access funds in either account. Parents or legal guardians can connect their own Alliant account with their child’s savings account. This gives access to the accounts current balance and you also have the option of using  their mobile check deposit feature. Alliant believes in providing helpful tools to their customers, so they do have some financial education programs available so that kids can get better with their money management. This is a credit union but the process to become a member is not hard.  Here is how to qualify:

  • You have a partner or relative who is a current member.
  • Alliant or Alliant’s partnered companies/organizations are your previous employers.
  • Your residence or work is within the communities near Alliant’s corporate offices in Chicago.
  • You donate $10 to Foster Care to Success ( a college fund for youth in foster care).

Capital One 360 Kids Savings Account

 bank accounts for kids


This Capital One 360 Kids Savings Account is geared towards younger kids and does not have an opening deposit or ongoing balance requirements.  This is a good savings account that you can just add money to when you have it and not worry about accruing any fees.  There is no minimum age requirement to open an account and parents are in charge of funds transfers.  They also offer mobile check deposits.  They do offer a 0.60% APY on all balances and if you opt for paper statements there is a $5 fee.

PNC Bank

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The PNC S is for Savings account is a great starter account for children . One of the things that makes it stand out from other savings accounts is that PNC offers a unique online interactive experience for kids that features Sesame Street characters . The account will also allow kids to set up savings goals. There is a $25 minimum deposit and you can avoid the monthly $5 fee if you meet any of the following criteria:

  • The account holder is under18
  • $300 average monthly balance
  • You have an automatic savings transfer of $25 or more every month from a PNC checking account