Best Savings Accounts For Teenagers In 2025

Having a savings account as a teenager can help young people get into the habit of saving money. Even if an account is opened with a very small amount, your teen’s money can grow as they add funds over time and earn compound interest.

What’s more, those who work can build up their balance by transferring a portion of each paycheck from checking to savings. Here are some of the best accounts as well as what you should know about opening a bank account for teens.

Best savings accounts for teenagers

Various savings accounts are designed to help young people earn a competitive yield on their money, while avoiding maintenance fees and minimum balance requirements.

Best for the highest annual percentage yield (APY) on all balances

• Capital One Kids Savings Account
• $0 minimum opening deposit
• 2.50 percent APY
• Age range: baby to 17

Capital One is an online bank, but it also has a brick-and-mortar presence. Its Kids Savings Account, which is available to children until they turn 18 years old, offers the same yield on all balances. You don’t need to make a deposit to open the account, and you won’t be charged a monthly service fee.

What to watch for: This is a joint account that needs to be opened with an adult. Once the minor account holder turns 18, they become a joint holder with equal privileges as the adult joint holder.

Best for the highest APY on a limited balance

• BECU Early Saver Savings Account
• $0 minimum opening deposit
• 5.38 percent APY on the first $500 (0.3 percent APY on balances of $500.01 or more)
• Age range: Under 18

Boeing Employees’ Credit Union (BECU) has more than 60 locations in Washington and two in South Carolina. BECU doesn’t require a minimum opening deposit for the Early Saver Youth Account. The account is available to teenagers until they turn 18 years old.

What to watch for: The higher APY is only available on balances up to $500. Balances above that amount will earn the lower APY.

You’ll need to meet certain criteria to be eligible to open an account at BECU. Those who live, work, worship or go to school in Washington state can qualify for membership. Also eligible are residents of select counties in Oregon and Idaho, as well as those who belong to partner associations.

Best for older teenagers

• FourLeaf Student Savings Account
• $5 minimum opening deposit
• 5 percent APY on the first $1,000 (1.39 percent APY on balances of $1,000.01 or greater)
• Age range: Under 21

FourLeaf Federal Credit Union, formerly Bethpage Federal Credit Union, was founded in 1941 for people working at Grumman Aircraft Engineering Corp. Now, it’s open to anyone who opens a savings account, with a minimum of $5.

The credit union’s Student Savings pays a competitive APY on the first $1,000, while the portion of your balance above that amount earns a lower APY. The account is available to those who are age 20 and younger, and those who are older than 18 can open the account without a parent or guardian as a joint owner.

FourLeaf Federal Credit Union also offers custodian accounts when either the custodian or the minor is a resident of New York. 

What to watch for: You’ll need to open a $5 savings account to become a member of FourLeaf Federal Credit Union. Also, the high APY only applies on the first $1,000 that you have in your FourLeaf Student Savings Account.

Best features to look for in a savings account

The best savings accounts for teenagers offer some common features:

• High APY: The annual percentage yield (APY) of an account is its rate of return, factoring in the effect of compound interest. The higher the APY, the more interest you’ll earn on your money.
• No minimum balance to open the account: Many teens aren’t starting out with much, which makes it important to find an account that can be opened with either no minimum or a very small amount.
• No minimum balance to maintain the account: It’s often best to go with an account that doesn’t require you to stay above a certain balance.
• No monthly service fees: It’s better to learn banking without having to worry about maintenance fees depleting your savings. Some savings accounts that normally charge fees will waive them for those who are under the age of 18, or who link a checking account from the same bank.

What to consider when opening a teen savings account

Opening a teen savings account with your teen can be an exciting experience. Having a savings account can help teach your young adult about saving at an early age. 

When opening a teen savings account you should consider: 

• The yield the account is earning and whether different balances earn different APYs with the account
• The minimum deposit required for the account
• If there are any monthly service fees or other fees
• Whether the account is a custodial account or a joint account
• What will happen when your teen ages out of the account
• Whether you want a brick-and-mortar experience or whether you want your child to learn banking online/through an app
• If you want your child to have a joint account or whether you want to be the custodian 

Alternatives to savings accounts for kids

Usually, high-yield saving accounts offer a more competitive yield than savings accounts for teenagers. So if your teenager – or you and your teenager – are eligible for a high-yield savings account for adults, this is an option to consider. Check with the bank you’re considering to find out its rules about a teenager opening up a regular high-yield savings account. You might also want your younger child to have their savings in a high-yield savings account. 

Also, decide whether a joint or custodial account works best for your situation. A joint account gives you and your child access to the savings account, while a custodial account requires you to manage the account for the child. Also, find out how the account will be handled when your teen reaches 18. Account restrictions might end, or the account will likely convert to an adult account.

Pros and cons of teenage savings accounts 

Pros 

• Teenage savings accounts cater more toward a teenager, potentially with certain features.
• Savings accounts for teenagers are a great way to teach teens about saving.
• These accounts generally don’t have monthly service fees.

Cons

• Teenage savings accounts generally earn a lower yield than high-yield savings accounts for adults.
• Some teenage savings accounts might earn a lower yield on higher balances. 

Minors usually need an adult to open an account

Teens under age 18 will likely need a parent or guardian to open a savings account. This adult will be designated as a joint account holder, unless the account is a custodial account. 

Children’s accounts are converted to standard accounts

When banks offer special accounts geared toward children or students, those accounts typically automatically convert to their standard savings account once the child reaches a predetermined age — which is often 18 or 21. When such a conversion happens, it’s a good time to determine if the new account is the best place for one’s money, by considering factors such as APY and any maintenance fees.

Bottom line

The best savings accounts for young people can feature a competitive APY, require no minimum balance and charge no maintenance fees.

The right savings account, combined with a checking account and the use of a debit card, can help teens and young adults develop healthy money habits and save for future goals that may include college and homeownership.