Top Savings Accounts Offering 7% to 10% APY for Kids and Teens

In today’s financial landscape, savings accounts are delivering unprecedented interest rates due to the Federal Reserve’s proactive measures against inflation. Remarkably, the most generous rates—ranging from 7% to 10% APY—are available to young savers, including children and teens, through select financial institutions.

Understanding Youth Savings Accounts

Youth savings accounts are specialized banking products offered by some banks and credit unions. They feature unique terms and interest rates and always require a parent or guardian as a joint account holder. Not every institution provides premium rates for these accounts, but standout options exist that significantly outperform typical adult high-yield savings accounts.

It's important to note that most youth accounts with exceptional APYs impose balance caps, commonly $500 or $1,000. For example, the top rate applies only to the first $1,000, with any amount above that earning a much lower standard interest rate.

Some banks offer a single youth savings account, while others provide tiered accounts—starting with savings accounts for younger children and advancing to checking accounts with debit cards as the child grows older.

Pro Tip

For modest savings amounts, a youth savings account is ideal. However, for larger sums intended for long-term growth, custodial investment accounts such as UTMAs or UGMAs are better suited. Keep in mind that funds in custodial accounts are irrevocable gifts to the child, whereas youth savings accounts remain jointly held by the parent and child.

Nationwide Youth Accounts Offering Top Rates

Two credit unions provide exceptional youth savings rates accessible to individuals across the United States. These accounts can be opened online, with nationwide eligibility for membership.

Spectra Credit Union - 10.38% APY: The Brilliant Kids Savings account offers an outstanding 10.38% APY on balances up to $1,000 for children up to age 17. Membership is open nationwide through a complimentary one-year membership in the nonprofit American Consumer Council.

Spectrum Federal Credit Union / Chevron Federal Credit Union - 7.00% APY: Although separately branded, these credit unions are the same entity. Membership requires an $8 annual fee via the nonprofit Financial Fitness Association. Their MySavings Youth Account pays 7.00% APY on balances up to $1,000 and is available for individuals aged 21 or younger. Teens 13 and older may also request an ATM card.

Additional High-Yield Youth Accounts in Select Regions

Neighbors Credit Union - 10.00% APY: Through the SMART youth program, members from birth to age 22 can earn 10.00% APY on a SMART savings account. Those aged 13+ can also open a checking account with a debit card. Membership is limited to residents or workers in specific Missouri and Illinois counties near St. Louis.

American Riviera Bank - 10.00% APY: This California-based bank offers a Kids Savings Account with 10.00% APY on balances up to $500. Accounts must be opened in person at one of their branches.

Gesa Credit Union - 7.00% APY: Gesa provides tiered youth accounts, starting with Explorer Youth Savings for ages 0-13, paying 7.00% APY on the first $500 plus up to $25 in matching deposits during the first year. Teens 14+ can access the SmartPlus Savings and Student Checking accounts, both offering 7.00% APY on specified balances. Eligibility extends to residents, workers, worshippers, or students in Washington and select counties in Idaho and Oregon.

WECU - 7.00% APY: Based in Bellingham, Washington, WECU offers youth accounts starting with First Step Savings (ages 0-19) and First Step Checking (ages 6+), paying 7.00% APY on a combined balance up to $750. Membership is open to Washington residents, workers, or worshippers.

Important Note

All featured credit unions are federally insured by the National Credit Union Administration (NCUA), providing up to $250,000 in federal deposit protection, equivalent to FDIC insurance for banks.

Top Savings Options for Adults

While adults typically cannot earn the 7% to 10% APY offered to youth accounts, high-yield savings accounts still provide historically strong rates. Currently, BrioDirect leads with a nationwide rate of 5.35% APY, with numerous other accounts offering 5.15% or higher.

If you prefer check-writing capabilities, money market accounts are a solid choice. UFB Direct offers a top rate of 5.25% APY, with several other options paying 5.00% or more.

Pro Tip

For funds that can be set aside for months or years, consider Certificates of Deposit (CDs) to lock in high rates. Current nationwide CDs offer rates up to 6.00% APY, guaranteeing your rate regardless of future Federal Reserve changes.

Rate Collection Methodology

Investopedia monitors rates from nearly 100 federally insured banks and credit unions nationwide daily to rank the best savings accounts. To qualify, institutions must be FDIC or NCUA insured, and accounts must have a minimum initial deposit requirement not exceeding $25,000.

For CD rankings, banks must operate in at least 40 states. Credit unions requiring membership donations of $40 or more are excluded. For detailed criteria, see our full methodology.

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