In today’s world, where financial literacy is more important than ever, teaching children about money management from an early age is crucial. One effective way to instill financial responsibility in children is by opening a savings account tailored specifically for them,here are some best savings account for kids:
Why should my kid have savings account?
A savings account is a helpful resource for teaching kids about money management. Children can develop sound financial habits, learn the value of money, and learn the importance of saving by gradually saving during their early years.
How do I open a Savings account?
Applying for a kids savings account can typically be done online. Only a few basic details about you and your child will need to be submitted. Make your initial deposit and begin using your account as soon as you’re approved.
Do I have to pay taxes on kid’s Saving account?
You are not required to pay taxes on your child’s unearned income if it totals $1,250 or less for the year (including interest and investments). The income is taxed at your child’s tax rate if it is between $1,250 and $2,500. If the amount exceeds $2,500, the parent’s tax rate will apply unless the child has a higher tax rate.
However, not all savings accounts are created equal, and finding the right one for your child can make a significant difference in their financial journey. Here, we’ll explore some of the best savings accounts for kids, highlighting key features and benefits offered by each.
Top 5 Savings Accounts
1. Alliant Kids Savings Account
Features:
- Annual Percentage Yield (APY): 3.1%
- Fee: No monthly fee with e-statements
- Mobile App: Allows digital monitoring, deposits, and interest review
- Transition: Children 13 and older can apply for a Teen Checking Account with Alliant
- Minimum Balance : No interst earning if minimum balance falls below $100
- Initial Deposit: $5 (covered by the credit union)
Why Choose It: The Alliant Kids Savings Account stands out for its excellent features designed to kickstart a child’s financial education. With a competitive APY and no monthly fees (with e-statements), children can learn the value of saving while enjoying convenient digital banking options. Alliant’s reputation as Bankrate’s best credit union underscores its commitment to practical features that facilitate financial learning.
If you want to open Account on Go >> Alliant Credit Union
2. Capital One Kids Savings Account
Features:
- Fee: No fees
- Minimum Balance: None
- APY: 0.3%
- Accessibility: Mobile app for balance checks
- Age Requirement: Can be opened for children of any age by parents or legal guardians
Why Choose It: Capital One offers a hassle-free savings option for children with its Kids Savings Account. With no fees, no minimum balance requirement, and a modest APY, this account provides a simple yet effective platform for children to start saving. Parents or legal guardians can open this account for children of any age, promoting early financial literacy and responsible money habits.
If you want to Open account on Go >>>Capital One
3. PNC’s ‘S’ is for Savings
Features:
- Online Tools: Financial education tools with Sesame Street characters
- Minimum Deposit: None
- Monthly Fee: $5 (waivable under certain conditions)
- APY: 0.01%
- Accessibility: PNC Mobile Banking app
- Age : under 18
- Maintainance Balance: $300
There’s at least one automated transfer $25 each statement cheaking period from PNC cheaking account
If you want to open account here Go>>>PNC
Why Choose It: PNC Bank’s ‘S’ is for Savings account is tailored for younger children, integrating online financial education tools featuring beloved Sesame Street characters. While the APY is modest, the emphasis on interactive learning makes it an ideal choice for introducing basic financial concepts to children in an engaging manner.
4. Boeing Employees Credit Union Early Saver Account
Features:
- Membership: Limited to specific geographic locations or affiliated organizations
- APY: 6.17% on balances up to $500; 0.5% above $500
- Monthly Fees: None
- Minimum Opening Balance: None
Why Choose It: For those within its service area, the BECU Early Saver Account presents an attractive option with its high-yield potential. Offering an impressive APY on balances up to $500, this account incentivizes saving from a young age. The absence of monthly fees and minimum opening balance requirements enhances its appeal, making it an excellent choice for cultivating long-term saving habits.
If you want to open account here GO>>>BECU
5. Pen Air Federal Credit Union Level Up Youth Account
Features:
- APY: 0.3% on all savings balances
- Accessibility: Debit card for children aged 8-18
- Membership: Accessible to military personnel, civil service employees, and immediate family members
Why Choose It: The Pen Air Federal Credit Union Level Up Youth Savings Account offers a competitive APY on all savings balances, complemented by the convenience of a debit card for children aged 8-18. Membership is accessible to a wide range of individuals, providing a solid foundation for financial growth and development supported by a reputable credit union.
If you want to open account here Go>>>PenAir
In conclusion, selecting the right savings account for your child is a crucial step in fostering financial responsibility and literacy. Each of the mentioned accounts offers unique features tailored to children’s needs, from competitive interest rates to interactive learning tools. By introducing children to the world of banking early on and providing them with the necessary tools and resources, parents can empower them to make informed financial decisions and cultivate lifelong money management skills.