Affinity Bank is offering a bank account for kids that pays 10% interest. Their “Kids Only Savings Account” has a 10% APY interest rate on all balances up to and including $500. This rate is 250% better than even the highest savings accounts currently being offered by the online banks.
The minimum deposit on the account to begin the account is $1.00. Balances that exceed $500 will be paid the bank’s regular savings rates which is quite low (under 1%). Children that open an account also receive a free Piggy Bank so they can get even more savings.
The catch? Parents must have or open an account with Affinity Bank. Affinity does offer a free checking account with a minimum $100 balance required which pays no interest. While this isn’t good, the 10% for the kid’s account still makes this a better deal than you can get anywhere else. The Kids Only account is restricted to children under 16 years of age and certain other restrictions and transaction limits apply.