Wondering Which High-Yield Savings Accounts Are Best for Teens? We’ve Got You Covered!
At 16, my daughter’s eyes aren’t just on the road—they’re on an old Mazda Miata convertible, complete with pop-up headlights. While she’s diligently saving for her dream car, I want her money to do some heavy lifting, too. That’s where a high-yield savings account comes in: a safe, easy way for teens to earn more while they save. Whether your teen is dreaming of their first car, a big trip, or college, the right account can help them get there faster.
Why High-Yield Savings Accounts are Perfect for Teens
Opening a high-yield savings account for your teen is like giving their money a job. Unlike standard savings accounts with minimal interest rates, high-yield accounts let your teen’s savings grow faster, thanks to higher annual percentage yields (APY). Beyond the financial perks, these accounts introduce teens to the basics of saving and compound interest, setting them up for long-term financial success.
For example, if your teen saves $5,000 for a car in an account earning 4.5% APY, they could make over $200 in interest in just one year—money that could go toward registration fees, insurance, or even a fun road trip.
What to Look for in a Teen-Friendly High-Yield Savings Account
When choosing an account, it’s important to find one that balances growth potential with accessibility. Here are key features to consider:
- No or Low Fees: Prioritize accounts with no maintenance fees to ensure every dollar your teen saves stays in their account.
- Easy Access: Opt for accounts with user-friendly mobile apps and wide ATM networks, making it simple for teens to manage their money.
- No Minimum Deposits: Most of the best accounts for teens have no minimum deposit, making it easy to start saving right away.
- Parental Controls: Look for joint account options that allow parents to guide spending and monitor savings.
- Educational Tools: Some accounts include features like savings goal trackers and resources to teach teens about financial responsibility.
5 Best High-Yield Savings Accounts for Teens
Various savings accounts are designed to help young people earn a competitive yield on their money, while avoiding maintenance fees and minimum balance requirements. Here are some top recommendations for high-yield savings accounts for teens:
Editor’s Note: The APYs mentioned below are current as of the time of publication but may change depending on Federal Reserve rate adjustments.
1. Capital One Kids Savings Account
- APY: 2.50%
- Minimum Balance: None
- Monthly Fee: None
- Offer Checking Account: Yes, starting at age 8
- Offer ATM Card: Yes, with the Capital One MONEY Teen Checking account
- Locations: Physical branches nationwide and online banking
The Capital One Kids Savings Account is perfect for young savers who want flexibility. It allows multiple accounts for separate goals (like saving for a car or a new gadget) and includes robust mobile app features to track savings progress. The seamless transition into a teen checking account at age 8, and later into a Capital One 360 Performance Savings™ account with a competitive APY of 4.30% at age 18, makes it a long-term solution for growing financial independence.
- What to Watch For: While the initial APY is lower compared to competitors, the account compensates with robust management tools, long-term growth potential, and the convenience of physical branch locations.
2. Alliant Credit Union Teen Checking and High-Yield Savings Account
- APY (Savings): 3.10%
- Minimum Balance (Savings): None
- Monthly Fee: None with eStatements
- Offer Checking Account: Yes, for teens aged 13–17
- Offer ATM Card: Yes
- Locations: Online banking with 80,000+ fee-free ATMs nationwide
Alliant Credit Union’s savings and checking combo offers high APY and hands-on money management tools. With joint account options, parents can oversee spending while teens enjoy learning financial responsibility. The mobile app includes goal-setting features, making it ideal for larger savings goals like a car or college fund.
- What to Watch For: Requires eStatements to avoid fees.
3. Fidelity Youth Account
- APY (Savings): 4.23% (via Fidelity® Government Money Market Fund)
- Minimum Balance: None
- Monthly Fee: None
- Offer Checking Account: Yes
- Offer ATM Card: Yes, with fee-free ATM access
- Locations: Online brokerage account with nationwide ATM access
The Fidelity Youth Account stands out with its blend of saving, spending, and investing capabilities. Teens can save with high-yield interest, invest in stocks, and learn financial independence through real-world experience. Parents maintain oversight while fostering financial literacy, making this account perfect for tech-savvy, goal-oriented teens.
- What to Watch For: Investments carry risks, so parental guidance is key.
4. BECU Early Saver Youth Savings Account
- APY: 6.17% on the first $500; 0.5% on balances over $500
- Minimum Balance: None
- Monthly Fee: None
- Offer Checking Account: Yes, with the BECU Free Checking option for teens aged 13+
- Offer ATM Card: Yes
- Locations: Branches in Washington and South Carolina, with shared credit union ATM access in select areas
BECU offers an unbeatable APY on small balances, making it a fantastic starter account for young savers. This account is particularly suited for short-term savings goals, like upgrading their tech, or saving for a concert. The credit union also provides a supportive community-focused banking experience.
- What to Watch For: Balances over $500 earn significantly lower interest. Membership eligibility depends on location and associations.
5. Bethpage Federal Credit Union Student Savings Account
- APY: 5.00% on the first $1,000; 1.39% on balances over $1,000
- Minimum Balance: $5
- Monthly Fee: None
- Offer Checking Account: Yes, Bethpage Bonus Checking is available for teens
- Offer ATM Card: Yes
- Locations: Physical branches in New York and nationwide access through shared credit union networks
Bethpage’s Student Savings Account is excellent for teens with smaller balances who want to earn top-tier interest. It’s a great way to encourage consistent saving habits while providing a strong return on modest deposits. The account’s low entry point ensures accessibility for families just starting their financial journeys.
- What to Watch For: Membership requires opening a separate $5 savings account, and the higher APY applies only to the first $1,000.
How to Help Your Teen Open and Manage Their High-Yield Savings Account
Getting your teen involved in the process is key to teaching financial responsibility. Here’s how you can make it a family activity:
- Discuss Goals: Sit down and talk about what they’re saving for—whether it’s a car like my daughter’s dream Miata, a college fund, or a new laptop.
- Compare Accounts Together: Use this opportunity to teach them about interest rates, fees, and other features.
- Set Up Automatic Transfers: Encourage them to automatically save a portion of their allowance or part-time job earnings.
- Review Progress: Check the account monthly to celebrate milestones and discuss their next savings goals.
Set Your Teen on the Road to Financial Freedom
Whether it’s a Mazda Miata, a summer study abroad program, or a rainy-day fund, opening a high-yield savings account is one of the smartest ways to help your teen’s money grow. Not only does it teach them the value of saving, but it also gives them a head start on building financial independence.
So, what are you waiting for? Take the first step today and set your teen on the road to financial success—and maybe, in my daughter’s case, a fun ride with pop-up headlights.
