Best Long-term Savings Account for a Child

Best Long-Term Accounts for Kids in 2025

Picking the right long-term savings account for a child is an important step toward making sure they have a safe financial future. There are so many choices that it can be hard to choose, especially for parents who want a mix of high interest, low fees, educational value, and easy access. We’ll list ten great savings accounts for kids that have features that will help them learn how to save money from a young age.

1. USAA Youth Savings Account

Designed for military families, the USAA Youth Savings Account offers competitive interest rates and no monthly maintenance fees. This account encourages early financial responsibility and provides accessible tools for parents and children.

• Competitive interest rates
• No monthly fees
• No minimum balance requirement
• Online and mobile banking
• Educational financial resources for children

2. Capital One Kids Savings Account

Capital One’s Kids Savings Account provides an engaging platform for children to learn money management. With no minimum balance and a user-friendly mobile app, it supports goal-setting and financial literacy.

• No monthly fees
• No minimum balance requirement
• Parental oversight with app-based tools
• Interactive educational features for young savers

3. Ally Bank Online Savings Account

Known for high interest rates and user-friendly online tools, Ally Bank offers a strong solution for long-term child savings. The digital experience is designed to simplify account management for families.

• High-yield interest rates
• No monthly maintenance fees
• Online and mobile access
• Goal-setting tools
• Enhanced security protocols

4. CIT Bank Children’s High-Yield Savings Account

CIT Bank provides a high annual percentage yield (APY) combined with no maintenance fees, making it a suitable choice for long-term growth. The account is designed to support savings goals from small contributions.

• Competitive APY
• No monthly fees
• No minimum balance
• Online account access
• Educational budgeting tools

5. Wells Fargo Way2Save® Savings Account for Kids

This account supports structured savings habits through goal setting and a tiered interest rate structure. It is built specifically to help younger children understand the value of saving money consistently.

• Goal-setting tools
• Tiered interest rate rewards
• No monthly maintenance fee
• Customizable account monitoring for parents

6. Synchrony Bank Kids’ Savings Account

Synchrony offers a savings account that combines competitive interest with no monthly fees. It is structured to help children learn the value of compounding interest and saving regularly.

• High interest rates
• No monthly maintenance fees
• Online banking platform
• Global usability with no foreign transaction fees

7. American Express National Bank High-Yield Savings Account

American Express provides a savings option with a high APY and no minimum balance requirements, offering a low-barrier entry into long-term savings. The account supports major goals such as education or business startup funds.

• High APY
• No maintenance fees
• No minimum balance
• Online and mobile access

8. PNC Virtual Wallet Teen Checking with Spend & Reserve

PNC’s account structure teaches teens to manage checking and savings simultaneously. The dual system helps instill budgeting skills while encouraging short- and long-term goal planning.

• Spend Account for daily use
• Reserve Account for savings goals
• Online tools with real-time tracking
• Financial alerts and parental oversight

9. Discover Online Savings Account

Discover offers an easy-to-use online savings account with strong customer service and no minimum requirements. This account helps establish strong habits by eliminating common banking barriers.

• High interest rates
• No maintenance or hidden fees
• No minimum balance requirement
• U.S.-based customer support

10. TD Bank Young Savers Club Account

TD Bank provides a savings platform tailored for young children, with milestone rewards and fun, finance-focused educational programs.

• No monthly fee above balance thresholds
• Competitive interest
• Access to workshops and educational tools
• Bonuses for savings milestones or birthdays

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Conclusion

When choosing a long-term savings account for kids, you need to do more than just look at the interest rates. Parents and guardians should also think about how easy it is to use, how much help it gives with schoolwork, and how much it costs. The ten accounts above have different features that can help kids learn good money habits early on. Parents also benefit from security, oversight, and the chance for their money to grow. If you start doing these things now, they can help you become financially independent in the future.

Frequently Asked Questions

What is the best savings account for a child in 2025?

There is no one-size-fits-all answer, but accounts from USAA, Ally Bank, and Capital One are frequently recommended due to low fees, strong interest rates, and accessible management tools.

Can a parent open a savings account in a child’s name?

Yes. Most banks offer custodial or joint accounts where a parent or guardian can manage the funds until the child reaches a certain age, typically 18.

What features should I look for in a child savings account?

Important features include no monthly maintenance fees, competitive interest rates, parental controls, and educational resources that promote good money habits.

Do these accounts have mobile apps for kids?

Many of the accounts listed, including Capital One and Ally Bank, offer mobile apps with kid-friendly features such as goal setting, progress tracking, and budgeting lessons.

Is there a minimum deposit required to open a child’s savings account?

Most of the options listed do not require a minimum deposit, making it easy for families to start saving with any amount.

Are these savings accounts FDIC-insured?

Yes, all banks listed are FDIC-insured, ensuring protection for deposits up to $250,000 per depositor, per insured bank.

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Reviewed and edited by Albert Fang.

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Article Title: Best Long-term Savings Account for a Child

https://fangwallet.com/2025/07/03/best-long-term-savings-account-for-child/

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