One factor that’s sure to weigh heavily when you’re looking for a starter bank account is your kid’s age. Many kid-friendly checking and savings accounts are unavailable to children under 13. On the savings account side, Capital One 360 Kids Savings Account is one of the few that is.
Good thing it also happens to be one of the best kids’ savings accounts on the market right now. Find out what to expect from it and decide whether it makes sense for your young one.
What Is the Capital One 360 Kids Savings Account?
The Capital One 360 Kids Savings Account is a kid-friendly version of the popular Capital One 360 Savings Account. It’s open to children and teens of all ages. An adult co-owner must be on the account until the younger owner turns 18 and must be the younger owner’s parent or legal guardian if they’re under 13.
The 360 Kids Savings Account has no minimum balance requirements or maintenance fees, which further strengthens the case for it as a first savings account. The adult co-owner has the final say on inbound and outbound transfers, a critical safeguard for younger kids. All balances earn interest, though at much lower rates than the typical adults-only high-yield savings account.
What Sets the Capital One 360 Kids Savings Account Apart?
The Capital One 360 Kids Savings Account stands out for several reasons, most of them positive:
- No minimum age to open. Unlike many kid-friendly savings accounts, this one has no minimum age requirement. An adult co-owner must be on the account until the younger owner turns 18, and there are tight parental controls to prevent misuse. But this is a legitimate first bank account all the same.
- Decent interest on all balances. All balances in this account earn 0.30% APY. That’s not spectacular as savings accounts go, but kid-friendly savings generally have lower yields, so it’s competitive enough.
- Can have multiple accounts. There’s no practical limit to the number of 360 Kids Savings Accounts you can open for your child. That’s useful if you’d like to help your kid or teen save for specific goals without mixing funds meant for other uses.
- No fees or minimums. This account has no monthly maintenance fee or minimum balance requirements. Both are deal-breakers for kids savings accounts.
The Capital One 360 Kids Savings Account can be a godsend to parents of younger kids and teens alike. Being open to kids under 13 is only half the battle. This account comes with all the features you’d want for your less experienced little ones.
Age Requirements, Ownership, & Account-Opening Process
The Capital One 360 Kids Savings Account is a joint ownership account with strict parental controls. The younger owner and adult co-owner have equal ownership rights until the younger owner turns 18, at which point they can remove the adult from the account.
There’s no minimum age to open a Capital One 360 Kids Savings Account. If the younger owner is under 12, the co-owner must be a parent or legal guardian. If they’re 12 or older, the adult co-owner can be anyone over 18, such as a grandparent or older sibling.
You can open a 360 Kids Savings Account online, which is good because Capital One has few branches. Because of that, you must verify each account owner’s identity and provide basic personal information as well.
All balances in this account yield 0.30% APY subject to change with prevailing interest rates.
Account Fees & Minimums
This account has no monthly maintenance fee and no minimum opening deposit or ongoing balance. With very few fees of any kind, it shouldn’t cost you anything to keep open and use normally.
Option to Open Multiple Accounts
You can open multiple 360 Kids Savings Accounts and create your own customized savings goals. That’s nice for older kids saving for multiple things at once who might not want to mix funds earmarked for specific purposes.
Your linked external bank account can be with Capital One or any other U.S.-based bank or credit union. You must have at least one to support inbound and outbound transfers.
Automatic Savings (Savings Plans)
Capital One makes it easy to set up automatic savings plans into your 360 Kids Savings Account. Choose the amount, frequency, and start date, and the plan runs until you change or cancel it.
Mobile Check Deposit
The Capital One mobile app, which is free with the account, supports mobile check deposit. You can do everything on your phone — no need to mail in the check when you’re done.
The Capital One mobile app also supports inbound and outbound funds transfers, as does the Capital One web portal. The adult co-owner must initiate all transfers though.
This account comes with FDIC insurance up to the statutory limit of $250,000 per account. If that limit is a problem for your kid before their 18th birthday, they’re in great shape.
Advantages of the Capital One 360 Kids Savings Account
It’s no secret this savings account has a lot going for it, both from the perspective of the younger user and their adult supervisor. The Capital One 360 Kids Savings Account’s top advantages include:.
- No minimum age. There’s no minimum age to open a 360 Kids Savings Account. That’s a big advantage over kids savings accounts that start eligibility at age 13. You can set up an account like this before your child is old enough to walk or talk.
- No monthly maintenance fee. This account has no monthly maintenance fee, so you won’t pay anything to keep it open. That makes it ideal for kids who don’t expect to use it for anything more than periodic birthday money deposits.
- No minimum balance. There’s no minimum balance to open or maintain one of these accounts either. That’s good news for kids just starting out on their savings journeys.
- Interest on all balances. This account yields 0.30% APY on all balances. Some kids’ “savings” accounts don’t pay interest at all, so this counts as a plus.
- Easy-to-set-up savings goals with multiple accounts. You can open multiple 360 Kids Savings Accounts to create goal-oriented savings accounts and keep funds separate. And with Capital One’s automatic savings plans, you can customize the rate at which you save for each.
- Tight parental controls around money transfers. The adult co-owner must approve inbound and outbound money transfers and automatic savings plans. That might be a downside for older teens ready for more control over their finances, but it’s welcome news for parents of younger children.
- Easy mobile check deposit. This account’s mobile check deposit feature is totally free and super-easy to use. You don’t have to mail the check in when you’re done, either. That’s all good news for kids who occasionally receive paper checks from grandparents.
Disadvantages of the Capital One 360 Kids Savings Account
The 360 Kids Savings Account isn’t perfect. For one thing, all those features that were so handy when kids were little can become cumbersome as they get older. Consider these downsides before you open an account for your child.
- Uncompetitive interest rate. The 360 Kids Savings Account has a decent yield, but it’s far from competitive with adult-oriented savings accounts offered by the leading online banks. If maximum interest is your goal, it may be best to open an adult account in your own name.
- Forces strict parental control. Since it requires parents or guardians to sign off on so many spending and saving decisions, this account might lean a bit to the controlling side for older kids and teens responsible enough to handle spending and saving decisions on their own.
- No direct deposit. This account isn’t compatible with employer direct deposit payments, so it’s not appropriate for teens who work.
- No educational features. This account has no educational features to speak of. You can use the multi-account feature to teach kids about budgeting and organizing savings, but there are more efficient ways to do that (and apps for it).
How the Capital One 360 Kids Savings Account Stacks Up
Before applying for the Capital One 360 Kids Savings Account, see how it stacks up against a popular alternative: the Alliant Credit Union Kids Savings Account.
|360 Kids Savings
|Alliant Kids Savings
|12 and under
|$5 to open, covered by Alliant
|Must approve all transfers
|Must approve all activity
The Capital One 360 Kids Savings Account isn’t quite the best kids’ savings account around, though it’s close.
It does qualify as one of the best — if not the best — first kids’ savings accounts, though. That’s due in large part to its all-ages eligibility and its tight controls on inbound and outbound transfers. No matter how special your child is, it’s reassuring to have the final say over whether and when they raid their savings.
But the 360 Kids Savings Account shouldn’t be your child’s forever savings account. Once they turn 18, it’s time to upgrade to a savings account with a higher interest rate.