Teaching teenagers how to save money is one of the most valuable financial lessons parents can provide. Many children begin by keeping coins in a piggy bank when they are three or five years old. As they grow, this simple habit often develops into opening a real savings account at a bank or credit union.
There is no strict rule about when to open a savings account for your child. Some parents open accounts when their children are still very young, while others wait until the teenage years. Regardless of the timing, having a savings account as a teenager helps young people build the habit of setting money aside, tracking financial goals, and watching their funds grow over time.
Even starting with a small deposit can be meaningful. Teens who add to their account regularly, or who allocate a portion of their earnings from part-time jobs, can steadily increase their savings. If you didn’t open an account when your child was younger, their teenage years are an excellent time to start.
Key Features to Look for in Savings Accounts for Teens
When comparing savings accounts for teenagers, the best options typically share a few important features:
High APY (Annual Percentage Yield): A higher APY means faster growth of your teen’s savings, as interest compounds over time.
Low or No Minimum Deposit: Teens often start with modest amounts, so it’s best to find an account that requires little to nothing to open.
No Minimum Balance Requirement: Avoid accounts that require a specific balance to remain open.
No Monthly Maintenance Fees: Choose banks or credit unions that waive fees for teen accounts, as fees can quickly erode savings.
Best Savings Accounts for Teens
Several banks and credit unions offer teen-focused accounts with attractive benefits, such as high APYs, no minimum balance requirements, and no monthly fees.
1. Best for High APY on All Balances
Capital One Kids Savings Account
Minimum to Open: $0
APY: 0.30%
Highlights:
Capital One operates both online and through physical branches. Its Kids Savings Account is available to teens up to 18 years old, with no minimum deposit required and no monthly fees. All balances earn the same APY, making it simple and accessible for beginners.
2. Best for High APY on Limited Balances
BECU Early Saver Youth Savings Account
Minimum to Open: $0
APY: 4.07% on the first $500 (0.02% on amounts above $500)
Highlights:
Boeing Employees’ Credit Union (BECU) offers this account to children and teens under 18. The standout feature is its generous 4.07% APY on balances up to $500. Above that, the rate drops significantly to 0.02%.Eligibility: Applicants must live, work, attend school, or worship in Washington state or certain parts of Idaho and Oregon, or belong to select associations. Applications cannot be completed online—you must apply in person.
3. Best for Strong Returns on First $1,000
Bethpage Teen Savings Account
Minimum to Open: $5
APY: 2% on the first $1,000
Highlights:
Bethpage Federal Credit Union, originally founded for aircraft workers, now offers membership to anyone. Its Teen Savings Account allows 18–20-year-olds to earn 2% APY on the first $1,000, making it one of the more rewarding options for moderate balances.For younger teens, Bethpage also offers a Youth Savings Custodial Account (NYUTMA), available to New York residents. A parent, guardian, or grandparent manages the account until the teen reaches adulthood.
Final Thoughts
The best savings accounts for teens combine competitive interest rates, no minimum balance requirements, and no maintenance fees. The right account not only grows their money but also teaches valuable lessons about budgeting, banking, and long-term financial planning.
Pairing a savings account with a checking account or debit card can further prepare teens for real-world money management. Whether they are saving for school, their first car, or future goals, starting the habit early provides a strong foundation for lifelong financial success.