Child Bank Accounts: The Complete Guide for Parents of Kids Ages 5-13

The Number That Changed How I Teach My Kids About Money

Here's a stat that stopped me mid-scroll last year: kids who have a savings account in their own name are six times more likely to attend college than kids who don't. Not three times. Not twice. Six times.

This comes from a study highlighted by the Consumer Financial Protection Bureau, and honestly, I didn't know this until I was 34 and already had two kids.

The researchers think it's not just about the money itself. It's about identity. When your kid has an account with their name on it, they start thinking of themselves as someone who saves. Someone who has a financial future. That mental shift is worth way more than the $47.23 sitting in the account.

My 9-year-old asked me last month why her "bank number keeps going up" even though she hadn't added any money. That was our first real conversation about interest — and it happened because she had her own account to watch.

Child bank accounts aren't just about storing birthday money. They're a teaching tool that does the work while you sleep.

Why Most Parents Keep Putting This Off

Let's be honest about why most of us haven't done this yet. I talked to dozens of parents before writing this, and the same reasons kept coming up:

"My kid is too young to understand banking." I thought this too. Then I realized my 6-year-old understood that coins go in the piggy bank and make it heavier. A savings account is just a digital piggy bank that grows on its own. Kids get it faster than we expect.

"It seems complicated." It's really not — I'll show you the exact steps below. Most banks let you open an account online in 15 minutes. You need your kid's Social Security number, your ID, and that's basically it.

"They don't have enough money to make it worthwhile." This is the sneakiest excuse because it sounds reasonable. But the point isn't maximizing interest on $50. The point is building the habit and the identity. Starting with $20 is perfect.

"I don't know which bank to choose." Fair. There are a lot of options, and banks aren't exactly clear about fees. I'll break down the best ones below, including the one I use for my own kids.

"I'll do it when they're older." This is the one that gets me. The earlier you start, the more time your kid has to internalize money habits. A 6-year-old who watches their account grow for 10 years has a massive head start on a 16-year-old just learning how banking works.

The real issue isn't that we don't care. It's that nobody taught us how to do this, so it feels bigger than it is. Let's fix that right now.

How to Open a Child Bank Account (It Takes 15 Minutes)

Here's the exact process. I timed myself when I opened my daughter's account — 12 minutes from start to finish, and that included hunting for her Social Security card.

Step 1: Gather Your Documents (2 Minutes)

You'll need:

• Your child's Social Security number
• Your government-issued ID (driver's license or passport)
• Proof of your address (most online banks skip this)
• Your child's birth certificate (some banks require this, many don't)

Pro tip: Take a photo of your kid's Social Security card and store it in a secure notes app. You'll need this number for more things than you'd expect over the next decade.

Step 2: Choose Your Account Type (1 Minute)

For kids ages 5-13, you have two main options:

Custodial Account (UTMA/UGMA): You control everything. The money legally belongs to your child, but you manage it until they're 18-21 (depends on your state). This is what I recommend for younger kids.

Joint Account: You and your child are both owners. This gives them slightly more access and is better for older kids who are ready for more responsibility.

For kids under 10, go custodial. For kids 10-13, either works depending on how much independence you want to give them.

Step 3: Pick a Bank (5 Minutes)

I'll cover the best options in detail below, but here's the quick version: Online banks usually offer higher interest rates and lower fees than traditional banks. Unless you want your kid to experience walking into a physical branch, go online.

Step 4: Apply Online (4 Minutes)

Go to the bank's website, find their kids or youth account page, and click "Open Account." You'll enter:

• Your information (name, address, SSN, date of birth)
• Your child's information (name, SSN, date of birth)
• How much you want to deposit initially (usually $0-$25 minimum)

Most banks verify your identity instantly. A few might ask you to upload a photo of your ID.

Step 5: Fund the Account and Set Up Transfers

Link your checking account and transfer your opening deposit. Then — and this is the part most people skip — set up an automatic monthly transfer. Even $5/month adds up and keeps the account active.

That's it. Your kid now has a bank account. Time to show them.

Best Child Bank Account Options for 2025

I've researched way too many kids' bank accounts over the past two years. Here are the ones actually worth considering, with the specific details that matter.

Capital One Kids Savings Account

Best for: Most families (this is what I use)
Interest rate: 2.50% APY
Minimum to open: $0
Monthly fees: $0
Age range: Under 18

Capital One's kids account is straightforward: no fees, no minimums, decent interest rate. Your kid gets their own login to check their balance, which my daughter loves. The app is clean and shows interest earned separately, which makes it easy to explain compound growth.

The main limitation: savings only, no debit card. For ages 5-13, I actually consider this a feature, not a bug. Learning to save before learning to spend is the right order.

Alliant Credit Union Kids Savings Account

Best for: Families who want the highest interest rate
Interest rate: 3.10% APY
Minimum to open: $5
Monthly fees: $0
Age range: Under 13

Alliant consistently offers one of the highest kids savings rates available. You'll need to become a member (free — just donate $5 to a partner charity during signup), but after that, it's smooth.

The catch: their kids account is only for children under 13. Once your kid turns 13, you'll need to switch to their teen account. Not a huge deal, but worth knowing.

Chase First Banking

Best for: Families who already bank with Chase and want spending practice
Interest rate: 0.01% APY
Minimum to open: $0
Monthly fees: $0 (requires parent Chase checking account)
Age range: 6-17

Chase First Banking is a checking account with a debit card, designed for hands-on money management. You can set spending limits, see transactions in real time, and assign chores directly in the app.

I don't love it as a primary account because the interest rate is basically zero — your kid's money doesn't grow. But as a secondary account for practicing spending (once they've mastered saving), it's solid.

Greenlight

Best for: Families who want a full money education app
Interest rate: Up to 5% APY (on savings goals)
Cost: $4.99-$9.98/month
Age range: Any

Greenlight isn't technically a bank — it's a money app for families that includes a debit card. The parent app lets you set savings goals, assign chores, control where the card works, and even set up automatic allowance.

The 5% interest is real but only applies to money in "savings goals," not the main spending balance. And there's a monthly fee, which adds up to $60-$120/year.

If you want the training wheels and educational features, Greenlight is worth considering. If you want a simple savings account that does its job, stick with Capital One or Alliant.

Local Credit Union

Best for: Families who value in-person banking experience
Interest rate: Varies (often 0.5-3%)
Fees: Usually none

Don't overlook your local credit union. Many have excellent youth programs with higher rates than big banks. My parents opened my first account at a credit union, and walking in to make deposits taught me something screen-only banking can't.

Check your local credit union's website for youth account details. According to Next Gen Personal Finance, credit unions are often more likely to offer financial literacy resources alongside accounts.

What People Get Wrong About Child Bank Accounts

After talking to hundreds of parents about this topic, I see the same mistakes over and over. Here's what to avoid:

Mistake #1: Chasing the Highest Interest Rate

I get it — 3.10% sounds way better than 2.50%. But here's the math: on a $500 balance, that difference is $3 per year. Not nothing, but not worth agonizing over.

What matters more is whether you'll actually use the account. Pick a bank with an app you like and features that fit your family. A "worse" account that you use beats a "better" account that sits forgotten.

Mistake #2: Opening an Account and Never Talking About It

The account itself doesn't teach your kid anything. You do. If you never log in together, never show them their balance growing, never explain interest — you've missed the whole point.

I check my daughter's account with her every Sunday morning. Takes 90 seconds. "Look, you had $234 last week, now you have $234.15." That fifteen cents is a conversation about how money grows without effort.

Mistake #3: Letting Kids Withdraw Whenever They Want

Your kid needs to learn that a savings account is for saving, not for impulse purchases. Set clear rules about when withdrawals happen. In our house, we review savings goals monthly and only withdraw for planned purchases.

If you want to give your kid spending money, use a separate checking account or cash. Keep the savings account sacred.

Mistake #4: Depositing Birthday Money Without Involving Your Kid

When grandma sends $50, don't just quietly deposit it. Make it a moment: "Look, Grandma sent you $50. Let's decide together: how much goes in your savings, and how much do you want to keep for spending?"

We use a simple rule: half goes to savings, half is spending money. Adjust based on your kid and the amount — the point is involving them in the decision.

Mistake #5: Waiting Until Your Kid "Earns" Money

Some parents want to wait until their kid has a job or regular chore income before opening an account. But an account can exist before there's a steady income. Gift money, holiday cash, even a few dollars you seed the account with — it all works.

The learning happens whether there's $20 in the account or $200. Start now.

Quick Wins: What to Do This Week

If you've read this far, you're ready to take action. Here's your game plan for the next seven days:

Today (5 minutes): Find your kid's Social Security card or number. Take a photo and store it somewhere secure. This is the thing that stops most parents — eliminate the friction now.

Tomorrow (15 minutes): Open an account. I'd start with Capital One Kids Savings if you want simple, or Alliant if you want the highest rate. Deposit $20 to get started.

This weekend (20 minutes): Sit down with your kid and show them their account. Log in together, explain what a balance is, and point out the interest rate. Let them see their name on the account.

Set up recurring deposits: Even $5/month on auto-pilot adds $60/year and keeps the habit alive. Pick a day — we do the 1st of each month — and link it to allowance or just call it a "savings boost."

If your kid has a three-jar system already: The bank account becomes the "SAVE" jar. Physical jars are great for little kids; a real account takes it to the next level around age 6-8.

Looking for ways to fund the account? Check out our guide on how to make money as a kid — even young kids can earn through age-appropriate tasks, and having a place to put that money makes earning feel more real.

What Parents Are Actually Asking

I spend a lot of time reading what parents are genuinely confused about. Here's what's coming up again and again:

"I want to open a bank account for my 10 year old and I'm trying to figure out the best options. The only option I've found so far is Greenlight which has a monthly fee. Is there anything else out there that's actually free?"

— via Reddit

This is the most common question I see. Yes, there are plenty of free options! Capital One and Alliant both have zero fees and zero minimums. Greenlight is fine if you want the extra features, but you absolutely don't need to pay monthly for a basic kids account.

"We have a credit union savings account for our 8 year old but he can't actually see or interact with it at all. Defeats the purpose of teaching him about money if he can't watch it grow."

— via Reddit

Such a good point. The account needs to be visible to be educational. If your current setup doesn't let your kid see their money, either add a separate account they can track (Capital One lets kids have their own login) or make a habit of logging in together weekly. Visibility is everything.

"Do I really need to give them my kid's SSN? That feels like a lot of personal information to hand over for a savings account with $30 in it."

— via Reddit

I totally understand the hesitation. Unfortunately, yes — banks are legally required to collect SSNs for all account holders under the Patriot Act and IRS reporting rules. The good news: major banks have strong security, and your kid's SSN is already in various systems (medical records, school records, etc.). A bank account at a reputable institution isn't adding much risk.

Frequently Asked Questions

How old does my child need to be to open a bank account?

Most banks allow you to open a custodial or joint account for your child at any age. Some banks like Capital One and Alliant specifically offer accounts designed for kids as young as birth. Your kid doesn't need to be a certain age — you just need to be listed as the adult custodian on the account.

What documents do I need to open a child bank account?

You'll typically need your child's Social Security number, their birth certificate or passport, your own government-issued ID, and proof of your address (utility bill or bank statement). Some online banks only require the SSN and your ID, making the process faster.

Should I get my child a savings account or checking account first?

For kids ages 5-13, start with a savings account. It teaches the core concept (money grows when you don't touch it) without the complexity of debit cards and spending tracking. Around age 10-12, consider adding a checking account with a debit card for hands-on spending practice. We cover more options in our full guide to kids bank accounts.

Do child bank accounts earn interest?

Yes, most child savings accounts earn interest. Rates vary widely — some big banks offer just 0.01% APY while online banks like Alliant offer 3.10% APY on kids accounts. That difference matters: $500 earns 5 cents per year at 0.01% versus $15.50 at 3.10%.

Can my child access the account without me?

It depends on the account type. With custodial accounts (UTMA/UGMA), you control everything until your child reaches 18-21. With joint accounts, your child may have some access depending on the bank's policies. Most kid-specific accounts let you set parental controls on spending and transfers.

Your Next Step

You made it through the whole guide — now do the thing. Fifteen minutes, one account, and your kid joins the small percentage who actually learn money skills before they need them.

Start with whatever feels easiest. If you already bank somewhere that offers kids accounts, go there. If you want my recommendation, open a Capital One Kids Savings Account tonight after the kids go to bed. Tomorrow, show your kid their new account over breakfast.

If you want more help teaching your kid about money beyond the bank account, grab our free kit:

It includes printable savings trackers, conversation starters for talking about money, and our "First $100" goal-setting worksheet. Everything you need to turn that new account into real financial education.

Your kid doesn't need a finance degree. They need a bank account, a parent who talks about money, and time. You've got all three now. Let's go.

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