Skip to content
  • Join PSECU
  • Refer a Friend
  • Rates
  • Find an ATM
  • Resources
  • Support
PSECU Logo
  • Explore Our Rates

    See today's checking, savings, certificate and individual retirement account (IRA) interest rates

    Have questions? Browse our FAQs
    • Account Types:
      • Checking Accounts
      • Savings Accounts
      • Money Market Accounts
      • Certificates
      • Individual Retirement Accounts (IRAs)
    • Banking Services:
      • For College Students
      • For Teens & Parents
      • For Youth & Parents
      • For Businesses
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Overdraft Services
        Check out PSECU's approach to overdraft services and fees
      • Understanding Money Market Accounts
        Learn how you can increase your savings with greater dividends
  • Explore Our Rates

    See today’s credit card rates

    Have questions? Browse our FAQs
    • Card Types:
      • Classic Card
      • Founder's Rewards Card
      • Penn State Alumni Cards
      • Secured Visa® Card
      • Business Credit Cards
    • Card Services:
      • Balance Transfers
      • Card Comparison Guide
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Dispute a Credit Charge
        Report unauthorized transactions on your card
      • Is a Balance Transfer Right for Me?
        Find out how consolidating can simplify your finances
  • Explore Our Rates

    See today’s auto loan, home equity product, mortgage, and personal loan rates

    Have questions? Browse our FAQs
    • Home & Auto:
      • Mortgages
      • Home Equity
      • Auto Loans
      • Recreational Vehicles
    • Personal & Business:
      • Personal Loans
      • Student Loans
      • Business Loans
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Paying Your Loan
        See your loan payment options
      • Debt Consolidation
        Save money, simplify your budget and reduce stress
  • Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
    • What We Offer:
      • Investing
      • Insurance
      • Auto Warranty
      • Medicare Insurance
      • Estate Planning
    • Quick Links:
      • Set Up a Free IRA in Pennsylvania
        Check out this six-step guide to start reaping tax benefits
      • Missing Out on Insurance Savings?
        Get tips on how to spot savings in your insurance coverage
  • Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
    • Is PSECU Right for You?:
      • What's Digital-First Banking?
      • How We Serve Our Members
      • All Member Services
    • Quick Links:
      • Earn $300*!
        Open a new member account with PSECU and you can earn $300* in bonus cash when you meet promo requirements!
      • New Member Support
        Get the guidance you need to take control of your account
      • PSECU in the Community
        We’re not just about finances - we’re about making an impact.
Login
PSECU Logo
Login
  • Checking & Savings
      • Checking Accounts
      • Savings Accounts
      • Money Market Accounts
      • Certificates
      • Individual Retirement Accounts (IRAs)
      • For College Students
      • For Teens & Parents
      • For Youth & Parents
      • For Businesses
      • Calculators
        Estimate payments, set savings goals and more
      • Overdraft Services
        Check out PSECU's approach to overdraft services and fees
      • Understanding Money Market Accounts
        Learn how you can increase your savings with greater dividends
    Explore Our Rates

    See today's checking, savings, certificate and individual retirement account (IRA) interest rates

    Have questions? Browse our FAQs
  • Credit Cards
      • Classic Card
      • Founder's Rewards Card
      • Penn State Alumni Cards
      • Secured Visa® Card
      • Business Credit Cards
      • Balance Transfers
      • Card Comparison Guide
      • Calculators
        Estimate payments, set savings goals and more
      • Dispute a Credit Charge
        Report unauthorized transactions on your card
      • Is a Balance Transfer Right for Me?
        Find out how consolidating can simplify your finances
    Explore Our Rates

    See today’s credit card rates

    Have questions? Browse our FAQs
  • Loans
      • Mortgages
      • Home Equity
      • Auto Loans
      • Recreational Vehicles
      • Personal Loans
      • Student Loans
      • Business Loans
      • Calculators
        Estimate payments, set savings goals and more
      • Paying Your Loan
        See your loan payment options
      • Debt Consolidation
        Save money, simplify your budget and reduce stress
    Explore Our Rates

    See today’s auto loan, home equity product, mortgage, and personal loan rates

    Have questions? Browse our FAQs
  • Investing & Insurance
      • Investing
      • Insurance
      • Auto Warranty
      • Medicare Insurance
      • Estate Planning
      • Set Up a Free IRA in Pennsylvania
        Check out this six-step guide to start reaping tax benefits
      • Missing Out on Insurance Savings?
        Get tips on how to spot savings in your insurance coverage
    Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
  • About PSECU
      • What's Digital-First Banking?
      • How We Serve Our Members
      • All Member Services
      • Earn $300*!
        Open a new member account with PSECU and you can earn $300* in bonus cash when you meet promo requirements!
      • New Member Support
        Get the guidance you need to take control of your account
      • PSECU in the Community
        We’re not just about finances - we’re about making an impact.
    Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
  • Join PSECU
  • Refer a Friend
  • Rates
  • Find an ATM
  • Resources
  • Support
Routine maintenance is scheduled for 12 AM, Sunday March 16, 2025, and will take several hours to complete. During this timeframe, members will not be able to access digital banking, membership or loan applications, or our call center IVR menu. We apologize for any inconvenience.
We apologize for the inconvenience, but our application for membership is currently unavailable. We are currently working to resolve the issue.
You’re Leaving PSECU's Site

 
 

Select “Proceed” to continue to , or close this window to return to PSECU.com.

Proceed
  1. Back to Home
  2. Resource Center
  3. Savings
  4. Best Savings Accounts...
Article
3 Minute Read

Best Children's Savings Account

Share on email Share on facebook Share on linkedin Share on twitter

You want to open a savings account for your child, but you aren’t sure where you should do it. Is there a difference between opening an account at a bank versus a credit union? What type of benefits can you find at a credit union that you might not get at a bank? And can you switch a custodial account to a regular account?

We can help you navigate through these questions as you attempt to find the best savings account for your child. Read on to learn the advantages of opening a savings account for your child with PSECU.

Should You Open a Savings Account for Your Child?

First, you may be wondering whether you should even look into opening an account for your child. Savings accounts offer a chance to save for:

  • Higher education
  • Special events, such as a field trip
  • High school events or big purchases for your child
  • Emergencies

Many people choose to open a savings account in their child’s name as soon as they’re born, while others wait until they feel their child is old enough to have input on the account. Whatever your reasoning, having money in your child’s name can help them learn fiscal responsibility and teach them about the importance of saving money early.

Check out this post for more tips on how to teach your child good money management.

Does PSECU Offer Savings Accounts for Children?

How do you choose the best savings account for your child? You should start by looking at options offered by financial institutions that you trust.

At PSECU, we currently offer a special higher-yield dividend rate for accounts opened for, or owned by, those under the age of 18. As with other PSECU savings accounts, a $5 deposit is needed to open the account. If you open the account at psecu.com/youth, we’ll cover that cost for you. Once open, the account can earn 4.00% Annual Percentage Yield (APY)* on savings account balances of up to $500.00. If their balance goes above $500.00, the remainder of the balance above $500.00 will earn dividends based on our Regular share rate. There is no fee to open the account and no monthly account fees.

The age of your child determines which types of accounts they’re eligible for. Children under the age of 13 can have a custodial account. Parents, guardians, or other family members over the age of 18 can open custodial accounts for a minor. The money in these custodial accounts belongs to the minor. However, the custodian makes the withdrawals and deposits.

Teens 13 and above can still have custodial accounts (until they turn 21); however, they’re also eligible to open their own account without a custodian. These are called regular accounts. While a custodian is not required on these accounts, a parent or guardian can be added as a joint owner if they’d like to view the teen’s banking activity until they’re old enough to manage their finances on their own.

Why Open Your Child’s Bank Account With a Credit Union?

When you open a savings account for your child, you want to find the one that offers the best return on your money and no fees.

Credit unions like PSECU offer a return on investment on savings accounts that banks often do not. This is because when you open an account at a credit union, like PSECU, you become a member-owner. In addition to being member-owned, credit unions are not-for-profits, a status that drives us to return surplus earnings back to our members.

Here are a few more reasons why opening your child’s account at PSECU may be one of the best choices for you:

1. Higher-Yield Dividend Rate on Savings Accounts

As described above,  PSECU offers a higher-yield dividend rate on accounts owned by those under the age of 18.

2. No Fees for Savings Accounts

Banks typically charge higher fees for maintaining a savings account. They may also impose requirements such as making minimum monthly contributions or maintaining a minimum balance to avoid fees. For children’s savings accounts, they’ll often charge a fee when the child has reached a certain age and the account needs to be transitioned to a regular savings account.

As PSECU, there are no monthly account fees, whether your child has a custodial or regular account. We require only a minimum $5 balance to maintain your account.

3. Benefits of Banking with PSECU

At PSECU, we believe in the children who will lead us in the future. That’s why, in addition to our youth accounts, we hold an annual scholarship competition for our members to help them fund their college education and concentrate on their studies. Another benefit of opening your child’s savings account with us is gaining eligibility for these scholarships. We award six of them each year.

For more money-saving tips, visit our WalletWorks page.

Open a Youth Account

 

Become a Member

*APY denotes Annual Percentage Yield. To be eligible for the Youth Savings rate, the primary account owner must be under the age of 18. All eligible Youth Savings Share accounts earn 4.00% APY for balances of $.01 to $500.00. For balances of $500.01 and over, the Regular Savings Share APY will apply. Rates and information are subject to change at any time. Fees could reduce earnings on the account(s). The disclosed dividend rates are variable and may change after the member opens the account(s). Find our current dividend rates at psecu.com/rates. PSECU requires a $5 minimum balance to open and maintain a Regular share account. This $5 share account deposit is also required to be eligible to receive the Youth Savings rate, and the member must be in good standing as defined by PSECU's Bylaws, Article II, Section I. PSECU will make a $5 minimum share purchase on behalf of the member.

The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

By: PSECU
Need to talk to us directly?
800.237.7328
Routing #: 231381116
  • Facebook
  • LinkedIn
  • Twitter
  • Instagram
  • Pinterest
  • YouTube
Awards Designations
  • Get to Know Us:
    • What's Digital-First Banking?
    • How We Serve Our Members
    • Financials
    • PSECU for Employers
    • Careers We're Hiring!
    • Resource Center
    • PSECU in the Community
  • Quick Links:
    • Rates
    • Calculators
    • Downloadable Forms
    • Become a Member
    • Refer a Friend
  • Contact & Support:
    • Support
    • Browse FAQs
    • Resume an Application
    • Find an ATM
    • Contact Us
  • Download the App:
    • App Store
    • Play Store
  • Sitemap
  • Disclosures & Agreements
  • Terms of Use
  • Fraud Prevention
  • Privacy
  • © 2025 PSECU. All Rights Reserved.
  • NCUA Insured by NCUA
  • Equal Housing Lender Equal Housing Lender