Selecting a bank account for a teenager can lay the groundwork for their financial habits. With the right account, they can learn the value of savings goals, understand budgeting and start their financial journey. We at the MarketWatch Guides team have found the six best savings accounts for teens, and we’ll give our insights on their features and perks to help you and your child make an informed decision.
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Best Savings Accounts for Teens: Our Picks
To find the best savings accounts for teens, we examined accounts designed for students up to 25 years old. We also reviewed regular savings accounts available to adults 18 years old and over with features that are helpful to college students.
To form this list, we then selected the accounts that are available nationwide and come from financial institutions that received the highest ratings in the savings category of our reviews. Read our full methodology.
After researching 128 banks and credit unions we at the MarketWatch Guides team rated these 6 as our picks for the best savings accounts for teens.
| Savings Account | Our Savings Star Rating | Award | APY* | Minimum Opening Deposit | Age |
|---|---|---|---|---|---|
| SoFi Bank: Checking and Savings Account | 4.8 | Best Checking-and-Savings Account Combo | 1.20% or 4.60% | $0 | At least 18 years old |
| Discover Bank: Online Savings Account | 4.6 | Best for College Students | 4.25% | $0 | At least 18 years old |
| PNC Bank: S is for Savings | 4.6 | Best for Financial Education | 0.01% | $0 | Under 18 years old |
| Spectrum Credit Union: MySavings Youth account | 4.5 | Best for Maximizing Interest | 7.00% for balances up to $1,000 | $0 | Under 22 years old Must be at least 13 years old to request an ATM card |
| Capital One: Kids Savings Account | 4.4 | Best For Savings Tools | 2.50% | $0 | Under 18 years old Account in parent’s or legal guardian’s name if under 12 years old |
| Bethpage Federal Credit Union: Student Savings Account | 4.2 | Best for Multiple Age Groups | 5.00% on balances up to $1,000 | $5 | Under 21 years old |
SoFi Bank Checking and Savings
- Award: Best Checking-and-Savings Combo
- Rating: 4.8
- APY: 1.20% or 4.60%
- Monthly Fees: $0
- Age Limits: At least 18 years old
- Minimum Opening Deposit: $0
Why We Like SoFi Bank
SoFi Bank offers a high-yield savings account that earns up to 4.60% APY. To get the best rate, you’ll need either direct deposits in any amount or qualifying deposits of $5,000 or more. Otherwise, savings earn 1.20% APY. This means SoFi’s savings account may be best for a teen who gets direct deposit from an employer or government benefits such as Social Security.
The account doesn’t have overdraft fees or monthly service fees, which could save you and your child money. You can earn a bonus of up to $300 for setting direct deposit up and receiving at least $1,000. Direct deposit users can also get their paychecks up to two days early.
SoFi doesn’t offer a standalone savings account. If you open a savings account with SoFi, you’ll automatically receive an interest-bearing checking account. The checking account can help automate savings by rounding your debit card purchases up to the nearest dollar and putting that money into your savings.
SoFi has an optional program that provides up to $2 million in Federal Deposit Insurance Corp. (FDIC) insurance by depositing some funds in other FDIC-insured banks. This account is good for young adults and anyone wanting a high-yield savings account without fees.
Pros
High APY: SoFi’s best rate is more than nine times the national average, helping your teen’s savings grow faster than they would with many competitors.
No fees: With no overdraft or monthly maintenance fees, you could save money in the long run.
Early paycheck access: The option to receive their paycheck up to two days early can provide flexibility for a teen who’s learning to manage their finances.
Enhanced FDIC insurance: Access to up to $2 million in FDIC insurance can offer peace of mind.
Cons
Savings rate requirements: The account only gets SoFi’s highest savings rate if it receives $5,000 or more in qualifying deposits or any direct deposits during each statement period.
Age restriction: You must be 18 or older to open the account, which means it’s not an option for younger people interested in learning good money habits early.
Bonus requirements: To earn the bonus of up to $300, you must set up direct deposit, which might not be feasible for all savers.
Discover Bank Online Savings Account
- Award: Best for College Students
- Rating: 4.6
- APY: 4.25%
- Monthly Fees: $0
- Age Limits: At least 18 years old
- Minimum Opening Deposit: $0
Why We Like Discover Bank
Discover Bank’s savings account is ideal for college students and young adults because it doesn’t have a minimum deposit requirement and account owners must be at least 18 years old. The account offers a competitive APY and doesn’t charge common banking fees, including those for monthly maintenance, excessive withdrawals and insufficient funds. Discover’s high-yield savings account also doesn’t have fees for stop-payment orders or account closure.
Pros
Competitive APY: The Discover savings account offers a strong return of 4.25% APY and doesn’t require a minimum opening deposit.
No common fees: Discover charge fees for monthly maintenance, official bank checks and more, potentially making banking less costly.
Student-friendly mobile app: The bank’s app lets users deposit checks, find ATMs and transfer money with Zellle, making it a good choice for college students.
Cons
Age limit: Account holders must be 18 or older, so younger savers would need to choose a different savings option.
PNC Bank’s S is for Savings Account
- Award: Best for Financial Education
- Star Rating: 4.6
- APY: 0.01%
- Monthly Fees: $0
- Age Limits: Under 18 years old
- Minimum Opening Deposit: $0
Why We Like PNC Bank
PNC Bank’s S is for Savings account teaches money management in a relatable, fun way. The online banking platform features three virtual piggy jars for your teen to set money aside to spend, share and save. PNC’s website also includes videos, books, podcasts and other materials to explain money concepts.
Made for kids under 18 years old, S is for Savings has no minimum opening deposit requirement. It pays a small amount of interest on balances of $1 or more. The account features an optional debit card and access to roughly 2,300 PNC regional branches and 60,000 nationwide ATMs.
PNC allows six free withdrawals per statement cycle, and you can set up automatic savings transfers from your PNC checking account to your teen’s account. The $5 monthly service fee for S is for Savings only applies after your child turns 18 years old. At that point, they can get the fee waived with a $300 average monthly balance or one automatic savings transfer of $25 or more from their PNC checking during each statement period.
Pros
Financial education: PNC offers extensive resources for adults and older kids online, including articles and webinars.
Easy to get started: There’s no minimum opening deposit requirement.
In-person access: PNC is a regional bank with branches in 28 states and Washington, D.C., and a national ATM network.
Cons
Very low APY: PNC offers the lowest savings rate of any bank or credit union on our list.
Transaction limits: The bank charges $3 for each withdrawal beyond the six that are allowed during each statement cycle.
Potential monthly fee: Once your child turns 18, they’ll pay a $5 monthly service fee unless they maintain a $300 minimum balance or have automatic transfers from their PNC checking account.
Spectrum Credit Union’s MySavings Youth Account
- Award: Best for Maximizing Interest
- Star Rating: 4.5
- APY: 7.00% on balances up to $1,000 (0.75% after)
- Monthly Fees: $0
- Age Limits: Under 22 years old
- Minimum Opening Deposit: $0
Why We Like Spectrum Credit Union
Available for people up to age 21, Spectrum Credit Union’s MySavings Youth account lets young savers maximize their interest with a 7% APY on the first $1,000 of the account balance. The remaining balance earns 0.75% APY.
Getting the top rate requires the primary account holder to sign up for electronic statements. There’s no monthly fee or minimum balance requirement. The joint-owned account allows young savers to request an ATM card at age 13, and parents can set up automatic transfers for savings goals.
Teens and parents can bank at the credit union’s Texas-based locations or use the national Co-op ATM and branch network. Spectrum Credit Union offers interactive financial education websites with games, articles and other resources for youths.
Pros
Very high APY: The first $1,000 in the account earns 7.00% APY.
No monthly fee: There’s no monthly maintenance fee to eat into the account’s earnings.
Higher maximum age: Spectrum accepts youth account holders up to 21 years old, while some competitors restrict their accounts to those under 18 or even 13 years old.
Financial education: The credit union offers special websites with money lessons for teens, plus tools to help with planning for college.
In-person banking: Spectrum members can access Texas-based branches and more than 5,600 shared branches and 30,000 ATMs nationwide in the Co-op network.
Cons
Requires e-statements for high APY: The entire account balance earnsonly 0.75% APY if the primary account holder doesn’t opt out of receiving paper statements and sign up for e-statements within 60 days.
Membership requirements: If applicants or their family don’t meet other eligibility criteria for joining the credit union, they’ll need to join an affiliated organization, which could cost money.
Capital One’s Kids Savings Account
- Award: Best for Savings Tools
- Rating: 4.4
- APY: 2.50%
- Monthly Fees: $0
- Age Limits: Under 18 years old
- Minimum Opening Deposit: $0
Why We Like Capital One
Capital One’s Kids Savings Account is open to anyone under the age of 18, making it an accessible option for families who want to teach young people about managing their finances. However, if a child is under 12 years old, their joint owner on the account must be a parent or legal guardian.
The account is fee-free and doesn’t require a minimum balance or minimum opening deposit, making it more affordable to teach teens the importance of saving. Also, if you link a checking or savings account to Capital One’s Kids Savings Account, you can set up automated transfers.
Pros
No minimum age: There’s no minimum age requirement, so teens of any age can open accounts.
Less worry: The account encourages saving without the hassles of fees or balance requirements.
Family-friendly: Capital One allows linking between parent and child accounts and supports contributions from grandparents.
Transition options: Once your kid turns 18, they can keep the same account or apply for a standard Capital One savings or checking account.
Cons
Lower APY: The account doesn’t earn as much interest as some competing youth accounts.
Bethpage Federal Credit Union’s Student Savings Account
- Award: Best for Multiple Age Groups
- Rating: 4.2
- APY: 5.00% on balances up to $1,000 (1.39% after)
- Monthly Fees: $0
- Age Limits: Under 21 years old
- Minimum Opening Deposit: $5
Why We Like Bethpage Federal Credit Union
Bethpage Federal Credit Union’s Student Savings Account offers a competitive APY on balances up to $1,000. While the rate drops considerably for account balances above $1,000, the lower APY is still roughly three times higher than the national average. This youth account is available for savers up to 20 years old, encouraging them to save early.
The Student Savings Account can be opened with as little as $5 and doesn’t have overdraft fees or a monthly maintenance fee, making it accessible to many savers. Once the primary account holder turns 21 years old, the account automatically converts to a regular savings account.
Pros
High rate: The account’s high APY on balances up to $1,000 can encourage saving.
Low minimum deposit: Start saving with just $5 to open an account.
Lack of fees: Not having overdraft fees or monthly account fees can make managing money more affordable.
Digital access: Bethpage offers convenient online banking for parents and for children who are at least 13 years old.
Cons
Rate cap: The high APY only applies to the first $1,000 in the account — the rate for larger balances is much lower.
Age limit: Bethpage doesn’t give young account holders the option to keep the same savings account once they reach its age limit.
What Is a Teen Savings Account?
A teen savings account is a deposit account with specialized features to help young adults learn about money and practice saving it. They’re typically joint accounts with a parent or guardian. These accounts may pay higher interest rates on lower balances, and they generally have low or no minimum balance requirements. Some financial institutions also provide educational resources about money management.
Teen savings accounts usually have age limits for the younger account holder, often 18 or 21. Some kids’ accounts transition to regular savings accounts once the young account holder reaches the specified age. Teen savings accounts usually require oversight from a parent or guardian and may block minors from banking activities such as transferring money.
How To Choose a Savings Account for Teens
When choosing a savings account for your teen, consider the goals of the account. Do you want your child to save for the long term? Do you want them to learn how to make good financial decisions?
Depending on the financial goals you have, the account you choose can vary. Here are some of the basic factors to look for in a savings account for a young person:
- Parental controls: Look for accounts that let parents monitor transactions and set limits.
- Interest rates: Higher interest rates can motivate teens by making their savings grow faster.
- Budgeting tools: Some accounts have apps or online tools that teach budgeting and financial planning.
- Minimum requirements: Opt for accounts with low or no minimum balance requirements, especially if your teen isn’t employed.
- Transition plans: Consider what happens when your teen ages out of the account, such as automatic conversion to a standard account.
Start by checking with your personal bank, they may offer a youth-centric account and added incentives since you’re already an active member or customer.
The Bottom Line: Teen Savings Accounts
Teen savings accounts are tailored to introduce young savers to the world of financial management. Teen savings accounts often have features such as parental controls, financial-education tools and competitive interest rates. When you’re selecting an account for a teenager, focus on options that balance oversight and independence.
FAQ: Savings Accounts for Teens
The best savings accounts for minors include Capital One’s Kids Savings Account and Bethpage Federal Credit Union’s Student Savings Account. Both options pay above-average interest on all balances and have low or no minimum deposit requirements.
Yes, many financial institutions offer high-yield savings accounts for minors under the age of 18. However, these may require an adult to open the account.
If a 15-year-old is instituting good savings habits, they should aim to save at least 20% of their monthly after-tax income. This follows the 50/30/20 rule for budgeting, which allocates 50% of income for needs, 30% for wants and 20% for savings and debt payments.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
- Savings and money market accounts (35% of total score): The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
- Checking accounts (30% of total score): High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
- Certificates of deposit (20% of total score): Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
- Banking experience and access (15% of total score): Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
All America Bank,Alliant Credit Union,Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank,Bank of America, Bank of Hope, Bank Purely, Bank5 Connect,Barclays,Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union,BMO,BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect,Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial,Chase Bank, Chime, CIBC USA, CIT Bank,Citibank, Citizens,Citizens Bank, Colorado Federal Savings Bank, Comerica Bank,Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union,Discover Bank, East West Bank, Emigrant Direct,EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC,Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union,LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank,Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union,Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal),PNC Bank, Popular Direct, Presidential Bank, Provident Bank,Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union,SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank,Synchrony Bank, Synovus Bank,TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank),Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade,USAA Bank, USAlliance Financial, Valley National Bank,Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank,Wells Fargo, Western State Bank, Zions Bank,Zynlo Bank
*Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
