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Key Takeaways
- Kids are the biggest winners in today’s high-rate environment, with select accounts paying an eye-popping 7% to 10% APY.
- Spectra Credit Union tops the list at 10.38% APY, while Chevron and Spectrum Federal Credit Unions pay 7.00% APY—all available nationwide.
- Kids living in certain parts of the country have even more options for earning an exceptional rate—with top offers from five regional banks and credit unions.
- Parents can’t earn quite that much, but our ranking of the best high-yield savings accounts gives you 15 options to earn 4.30% to 5.00% APY.
The full article continues below these offers from our partners.
How Kids’ Savings Accounts Work—and What Parents Should Know
Kids can’t open bank accounts on their own, even though youth savings accounts are designed specifically for minors. A parent or guardian must be a joint owner, and these accounts often come with special rules and their own rates.
But here’s the surprise: A handful of banks and credit unions pay truly premium yields on youth accounts. In fact, the returns can be more than double what even the best adult high-yield savings accounts offer.
There are catches, though. The biggest one is the balance limit. Many child savings account only pay the top annual percentage yield (APY) on the first $500 or $1,000—with any money above that earning a much lower return, or even 0%.
You’ll also find that some institutions offer a one-size-fits-all youth account, while others offer different levels of account, such as basic savings for young kids and more advanced products for teens, like a checking account with a debit card.
Kid Savings Account or Custodial Account?
Youth savings accounts are great for smaller balances. But if you’re setting aside larger sums for the long haul, a custodial investment account (UGMA or UTMA) may be the smarter choice. Just remember, custodial accounts are irrevocable gifts to your child—unlike youth savings accounts, which you co-own.
Top Nationwide Accounts Paying Kids the Highest Yields—Up to 10.38%
In our research, two credit unions stood out for offering the very best youth savings account rates—both available nationwide.
Spectra Credit Union (10.38% APY): Spectra’s Brilliant Kids Savings account is available to children up until their 18th birthday, and it pays 10.38% APY on balances up to $1,000. Anyone in the U.S. can join Spectra Credit Union by agreeing to a free one-year membership in the nonprofit American Consumer Council.
Spectrum Federal Credit Union / Chevron Federal Credit Union (7.00% APY): These two credit unions are separately branded but are the same institution. You can join one or the other (but not both) by agreeing to a free one-year membership to the nonprofit Financial Fitness Association. Their MySavings Youth Account pays 7.00% APY on balances up to $1,000 and is available to individuals who are 21 or younger. Those who are at least 13 may also request an ATM card.
Where Kids Can Earn Even More on Their Savings
Living in certain parts of the country unlocks more high-yield youth savings options. Some can be opened online, while others require an in-branch visit. In all cases, eligibility depends on your location.
Neighbors Credit Union (10.00% APY): Through its SMART youth program, Neighbors offers different banking privileges for different ages. Anyone from birth through age 22 can earn 10.00% APY on up to $1,000 in a SMART savings account, and those aged 13 and older can open a checking account with a debit card. Membership in Neighbors Credit Union is open to those who live or work (or have a relative who lives or works) in several Missouri and Illinois counties in the St. Louis area.
American Riviera Bank (10.00% APY): American Riviera’s Kids Savings Account pays 10.00% APY on balances up to $500. Joint accounts with a minor must be opened in person at one of their California branches in Santa Barbara, Montecito, Goleta, Santa Maria, San Luis Obispo, or Paso Robles.
Jeanne D’Arc Credit Union (8.00% APY): Jeanne D’Arc’s M3 Money Club offers an 8.00% APY on balances up to $500. Membership in the credit union is open to residents of select Massachusetts and New Hampshire counties.
BCFCU (Blue Coast Federal Credit Union) (8.00% APY): BCFCU’s Student Saver Club account pays 8.00% APY on balances up to a generous $1,500 for children younger than 18. However, the funds cannot be withdrawn until August 1 of each year. To join the credit union, you must live in one of 13 Florida counties.
WECU (7.00% APY): WECU, a credit union headquartered in Bellingham, Washington, offers a series of youth accounts beginning with the First Step Savings account, which is available to youths aged 0–19 and pays 7.00% APY on up to $500. Once they turn six, they’re eligible to open a First Step Checking account, and at 15, WECU offers teen credit cards. Anyone who lives, works, or worships in the state of Washington is eligible to join WECU.
Credit Unions Are Just as Safe as Banks
Every credit union we’ve included is federally insured by the NCUA—the credit union equivalent of the FDIC. That means your deposits are protected up to $250,000, just like at a bank.
Smart Savings Options for Parents, Too
Adults can’t snag 7% or 10% like kids can—but you can still earn historically high returns. Today’s top high-yield savings accounts pay up to 5.00% APY, and our daily ranking lists 14 more options paying 4.30% or better. Or if you prefer paper checks with your savings, a money market account may fit. The best current nationwide rate is 4.80% APY, with several others paying 4.00% or higher.
Have funds you can set aside for months—or even a year or more? Consider a CD while rates are still high. Locking in now guarantees your return until the term ends, no matter what the Federal Reserve does with future interest rates. Today’s best nationwide CDs pay up to 4.60% APY.
Our Current Rankings of Today’s Top Rates
We update these rankings every business day to give you the best deposit rates available:
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
