Anyone Can Earn 5% on Savings These Days—But Kids Can Earn 7% to 10% (2024)

Key Insights

Today's best savings accounts are paying record rates, thanks to the Federal Reserve's historic fight against inflation.
Perhaps the biggest earnings winners of all are kids, with a handful of institutions offering astronomical rates of 7% to 10% APY on child and teen savings accounts.
Mom and Dad can't earn quite that much, but our ranking of the best high-yield savings accounts gives you almost 20 options to earn between 5.15% and 5.55% APY.

The full article continues below these offers from our partners.

How the Top-Paying Youth Savings Accounts Work

Many banks and credit unions offer savings accounts that are separately geared toward minors. These youth always have special rules and their own rate, and they require a parent or guardian to be a joint owner since people under age 18 can't open a bank account on their own.

Among the many institutions that offer a child or teen savings account, a handful offer a truly premium rate. What these youth savings accounts pay isn't just high—it can be twice as much as what you can earn as an adult, even with the very best high-yield savings accounts.

There are a couple of caveats, however. One of the most common you'll see for youth accounts paying a stellar rate is that the bank or credit union caps the balance that can earn a high yield. The most typical are limits of $500 or $1,000. That means, for instance, that your child's first $1,000 will qualify for the top annual percentage yield (APY), but then any amount above $1,000 will earn a standard rate, which is usually very low.

Also, some banks offer just a single youth savings account, while others go further by offering a savings account for young children, and then more advanced accounts—such as a checking account with a debit card—for kids who have reached a certain age threshold.

A youth savings account works well for relatively modest balances. For larger deposits you want to see grow over a long period of time, you'd be better served by a custodial investment account. These accounts—often called UTMAs or UGMAs—are designed for long-term investment on a minor's behalf. Just beware that deposits made to these accounts are considered gifts to your child that cannot be taken back. In contrast, a youth savings account is held jointly by you and your child.

These Two Top-Rate Youth Accounts Are Available Nationwide

The two highest-paying youth savings accounts we've found in our research are offered by credit unions that accept customers living anywhere in the U.S.

Spectra Credit Union (10.38% APY): Spectra's Brilliant Kids Savings account is available to children up until their 18th birthday, and pays 10.38% APY on balances up to $1,000. Anyone in the U.S. can join Spectra Credit Union by agreeing to a free one-year membership in the nonprofit American Consumer Council.

Spectrum Federal Credit Union / Chevron Federal Credit Union (7.00% APY): These two credit unions are separately branded, but are the same institution. You can join one or the other (but not both) by agreeing to an $8 one-year membership to the nonprofit Financial Fitness Association. Their MySavings Youth Account pays 7.00% APY on balances up to $1,000 and is available to individuals who are 21 or younger. Those who are at least 13 may also request an ATM card.

More High-Yield Options for Kids in Lucky Places

If you live in one of these locations in the country, you have more options. Though some of these can be opened online, others require that new accounts be opened in person at a branch. In all cases, however, you must be eligible to join the credit union based on where you live.

Neighbors Credit Union (10.00% APY): Through its SMART youth program, Neighbors offers different banking privileges for different ages. Anyone from birth through age 22 can earn 10.00% APY on up to $1,000 on a SMART savings account, and those aged 13 and older can open a checking account with a debit card. Membership in Neighbors Credit Union is open to those who live or work (or have a relative who lives or works) in several Missouri and Illinois counties in the St. Louis area.

American Riviera Bank (10.00% APY): American Riviera's Kids Savings Account pays 10.00% APY on balances up to $500. Opening an account for a minor must be done in person at one of their California branches in Santa Barbara, Montecito, Goleta, Santa Maria, San Luis Obispo, or Paso Robles.

Jeanne D’Arc Credit Union (10.00% APY): Jeanne D'Arc's M3 Money Club offers a 10.00% APY on balances up to $500. Upon turning 13, members will be transitioned into a Statement Savings account, which also pays 10.00% APY on the first $500. Membership in the credit union is open to residents of select Massachusetts and New Hampshire counties.

BCFCU (Blue Coast Federal Credit Union) (8.00% APY): BCFCU's Student Saver account pays 8.00% APY on balances up to $1,000. The account can be opened by children of any age below 18, and they can keep the account beyond that age as long as they are students. To join the credit union, you must live in one of 13 Florida counties.

Gesa Credit Union (7.00% APY): Gesa Credit Union offers a series of youth accounts, starting with its Explorer Youth Savings for kids ages 0-13. It pays 7.00% APY on the first $500. It also offers up to $25 in matching deposits during the first year the account is open. Upon turning 14, teens graduate to the SmartPlus Savings account, which also pays 7.00% APY on the first $500 of the balance. But they also become eligible for a Student Checking Account with a debit card, which pays 7.00% APY on an additional $500 balance. Eligibility is open to those who live, work, worship, or attend school in the state of Washington, or select counties of Idaho and Oregon. Having a close relative who's eligible may also qualify you.

The Best Savings Accounts for Mom and Dad

As an adult, you may not be able to earn 7% or 10% on your own savings account, but you can still earn a historically high rate with one of today's best high-yield savings accounts. The top nationwide rate is currently 5.55% APY, offered by My Banking Direct. But our daily ranking of the best high-yield savings account rates offers almost 20 options paying 5.15% or better.

Want paper check-writing privileges from your savings account? Then consider a money market account. Our daily ranking of the best money market rates is topped right now by Brilliant Bank, offering 5.35%. But you can find several other options paying 5.00% APY or more.

Have money you can sock away for months, a year, or even more? Consider putting some of your savings in a CD while rates are at historic highs. The rate you lock in will be yours to keep until the CD term ends, no matter what the Federal Reserve does with future rates. Current offers in our daily ranking of the best nationwide CDs pay as much as 5.60% APY.

Best High-Yield Savings Accounts for June 2024—Up to 5.55%

Best Money Market Account Rates for June 2024—Up to 5.35%

18 Best CD Rates for June 2024: Up to 6.00% APY

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.