Have two kids (5yr olds) that we want to open savings accounts for.
Initially was thinking just opening two separate HYS accounts to take care of this but then that doesnt tie it to the kid at all (but does it need to right now)?
Tried to create a joint account but the joint owner must be 18+.
Custodial accounts just seem to be tied to investments. Not what we want for this purpose, just looking for a savings account.

Any other options out there? Is the best bet to getting a good HY rate just opening one as an individual owner and then transferring it to them when they turn 18?

Interested in this as well. Mom opened one for my 3 year old to put money in on birthdays and whatnot but it's just in a credit union making nothing. Been meaning to transfer it into a HYSA but open to some other options if it makes sense.

Already have 529s set up for both of them

Looking for something that they can put money in, take money out, learn about money management as they get a little older, all while getting about 4% back every year while it just sits.

We have chase bank and it has a kids checking and savings tied to us. It allows them to have their own debit card. Not high yield, but it's not a lot of money, so it doesn't matter too much for us. They get to learn money management by being able to transfer money from checking to savings and having their own debit card.

If they have enough, I'd look to buy mutual funds. I started buying MF's with 75-80% of their money and it's grown so much faster than a normal savings account.

We also do 529s.

But outside of that we just set up a new account in my Fidelity account and nicknamed them for each kid. We put $1k in each to start and anytime they get money for Christmas, birthdays, etc., we just take the cash and add that amount to this account. It's all invested in a Fidelity Mutual Fund.

Now, one is 4 and one is 9 months. So things like a debit card aren't needed. This is just a place to put random money they get vs. throwing it in their piggy bank.

Capital One 360 performance currently pays 3.8% and is really easy to set up. You can set up one time contributions or scheduled contributions. It is just a high yield savings account so the money is easy to move into or out. Just another option for you.

Recently opened these for my kids (8,6,6)
https://www.capitalone.com/bank/savings-accounts/kids-savings-account/

While you're in your Capital One account make sure they arent ripping you off.
https://www.cnn.com/2025/01/14/investing/capital-one-cfpb-ruling/index.html

Thisguy1 said:

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Interested in this as well. Mom opened one for my 3 year old to put money in on birthdays and whatnot but it's just in a credit union making nothing. Been meaning to transfer it into a HYSA but open to some other options if it makes sense.

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I did the same for my kids at my CU. Last week I got my son's account detached into his own account. But I suggest transferring the money to Fidelity to take advantage of their higher interests (about 4.5%). Or just throw the money into SPY and forget about it for years. I just created a Roth IRA account for my teen and post-teen and put their summer earnings in there.

I opened 529s for my girls when they were born. Averaged $250/month into the accounts and have been adjusting slightly annually to get to an 80% funded balance for 4 years at A&M. With that covered and more disposable income now vs 5+ years ago I have opened UTMAs for each of them to start building some no-strings attached wealth for post-college/HS