Youth Savings Accounts Outperform Traditional Banking with APYs Up to 10.38%

Minors are unexpectedly becoming the beneficiaries of today's high-interest rate environment, with select credit unions offering youth savings accounts yielding between 7% and 10.38% APY—far surpassing returns available to adults. Spectra Credit Union leads with a 10.38% rate, followed by Chevron and Spectrum Federal Credit Unions at 7.00%, all accessible nationwide. Regional institutions provide even more opportunities for children in specific locations.

These accounts require parental oversight as joint owners and often impose strict balance limits—typically capping the premium yield at the first $500 or $1,000. Beyond these thresholds, returns drop sharply, sometimes to zero. The disparity highlights a niche where custodial accounts briefly eclipse even the best high-yield savings products for adults, which currently top out at 5.00% APY.