top of page

Savings Accounts for Young People


Savings accounts are crucial for building wealth over time. If you’re young and new to the world of personal finance, you need to know how to find the right account for your needs. Some are online, others are traditional, so you should weigh your preferences to determine the best fit.


There are many types of savings accounts available at different banks, each with features and benefits. In this review, we'll take a look at 10 of the top savings accounts for new savers, including information on interest rates, frequency of compounding, account balance minimums, and any fees or charges associated with the account.



The Ally Online Savings Account is a popular choice among savers, with a competitive interest rate (currently 3.75%) and no minimum balance requirement. Interest is compounded daily and paid monthly. There are no monthly maintenance fees, and Ally offers 24/7 customer support.



The Discover Online Savings Account offers a high interest rate – 3.75% - and no monthly maintenance fees or minimum balance requirement. Interest is compounded daily and credited to the account monthly. Discover also offers a mobile app for easy account management.



The CIT Bank Savings Builder Account offers a high interest rate, twice the national average, but requires a minimum balance of $25,000 OR a monthly deposit of $100 to earn the highest interest rate. Interest is compounded daily and credited monthly. There are no monthly maintenance fees.



The Marcus by Goldman Sachs Online Savings Account offers an outstanding 3.90& interest rate and no minimum balance requirement. Interest is compounded daily and credited monthly. There are no monthly maintenance fees and Goldman Sachs has a reliable customer contact center.



The Capital One 360 Savings Account offers a very solid interest rate of 3.50%, with no minimum balance requirement. Interest is compounded daily and deposited monthly. There are no monthly maintenance fees, and the bank offers a mobile app for seamless management.



The Chase Savings Account requires a minimum balance of $300 oa an autosave of 25$ per month to avoid a 5$ monthly maintenance fee – unless the account owner is under 18, in which case there are no fees. With interest compounded daily and factored in monthly, Chase is a solid choice. It offers a mobile app for various banking needs and on-demand customer service.



The Wells Fargo Way2Save Savings Account offers a low interest rate , but requires a low minimum balance of $25 to open and no monthly maintenance fees. It offers daily compounded interest which is credited quarterly. Wells Fargo offers online and mobile services and 24/7 customer support.



The HSBC Direct Savings Account offers a good interest rate with no minimum balance requirement. Interest is compounded daily and credited monthly. There are no monthly maintenance fees, and HSBC provides exceptional customer support.



The Synchrony High Yield Savings Account offers a phenomenal interest rate (4.15%) with no minimum balance requirement. Interest is compounded daily and credited monthly. There are zero monthly maintenance fees, and Synchrony offers anywhere, anytime banking.



The Barclays Online Savings Account offers an impressive interest rate – 4.00% - with no minimum balance requirement. Interest is on a daily compounding and monthly crediting structure. There are no monthly maintenance fees, and Barclays offers secure access any time of day.


As you search for possibly your first savings account, consider the convenience of online accounts, the ability to talk face-to-face with traditional banking, interest rates, and fees and minimums.



 

High school freshman Finley Lewis is a self-taught day trader, and the author of 9 Rules to Dominate Your Money and Learn What 67% Of Adults Don’t Know.


He writes about financial literacy for teens, aiming to fill the gap the education system leaves in preparing young people for success in later life.


Finley has been an investor for three years, beginning his journey at the start of the Covid-19 pandemic. He has always been passionate about money and had the importance of managing and spending it wisely instilled in him at a young age. The more he learned, the more he noticed the shocking absence of financial literacy teaching in school, and he became determined to share his knowledge to help other teenagers.


Wise beyond his years, Finley recognizes that the key to building wealth is time, and he’s dedicated to making sure young people have the knowledge they need early enough to get a head start.


Finley is a straight-A student and spends half an hour a day watching Spanish TV in order to learn the language. He volunteers in the community and loves baking (just ask his friends about his chocolate chip cookies!).

11 views0 comments

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page