High-Yield Savings Accounts for Kids, Teens, and College Students

The core rule: minors need an adult on the account

Most banks require you to be 18 to open a savings account entirely on your own. Below that age, a child's high-yield savings account must be a joint account, with a parent or legal guardian as a co-owner.

The FDIC's Youth Banking Resource Center confirms that banks typically structure these accounts with an adult as a joint owner or custodian until the child turns 18, since a minor generally cannot sign a binding account agreement alone.

The parent or guardian on a joint account typically keeps full access and control, while the child builds a savings habit and, at many banks, gets a linked debit card with adult oversight.

Custodial accounts: UTMA and UGMA

A custodial account, opened under your state's version of the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA), is a different structure than a simple joint savings account. The money legally belongs to the child, but a custodian, usually a parent, manages it until the child reaches the account's transfer age.

That transfer age is set by state law and is typically 18 to 21, though a handful of states allow it to run later. Once a child reaches that age, they gain full control of the account, so custodial accounts work best when you're comfortable handing over full control at that age.

Interest earned in a custodial account is the child's income for tax purposes. Under 2026 IRS rules, the first $1,350 of a child's unearned income is tax-free, the next $1,350 is taxed at the child's rate, and amounts above $2,700 can be taxed at the parent's rate under the kiddie tax. Most kids' HYSA balances stay well under that threshold.

Teens: joint accounts that build independence

For teens roughly 13 to 17, many banks and credit unions offer a joint high-yield savings account designed to teach money management. The parent co-owns the account, but the teen usually gets their own login and, sometimes, a debit card tied to a linked checking account.

This setup lets a teen watch their own balance grow while a parent retains oversight and can step in if needed. When the teen turns 18, most banks convert the account to an individual account in their name only, or the teen opens a new one and transfers the balance.

College students: the transition to a solo account

Once a student turns 18, they can open a high-yield savings account entirely in their own name, no parent required. Many banks offer student-specific savings or checking bundles with fee waivers while enrolled in school.

A HYSA is a good home for a college student's emergency cushion or savings toward summer expenses, since the money stays liquid and earns a competitive rate. Compare current rates and see how a starting balance grows over a semester or a year with our high-yield savings calculator.

Small businesses: a different account type entirely

A high-yield savings account for a small business is a separate product from a personal or custodial account, and it isn't tied to age rules at all. Business owners open these under the business's legal name and tax ID, usually an EIN, rather than a Social Security number.

Business savings accounts sometimes carry lower rates or added fees compared with personal HYSAs, so compare terms carefully before moving business cash into one.

Which account should you open?

Match the account to the age and goal. A young child usually needs a joint savings account with a parent as co-owner, or a custodial UTMA/UGMA account if you want the money legally titled to the child.

A teen benefits from a joint teen-specific savings account that builds financial habits before adulthood. A college student, once 18, can open a standard HYSA solo.

If you're weighing a savings account against an investment account for a child's longer-term goals, see our guide on the best investment account for kids for how a HYSA fits alongside options like a 529 or custodial brokerage account.

Frequently asked questions