There is no easy answer to this question since most accounts geared towards young children are best found at a small local bank or credit union, so finding something local to you would be the best option.

That being said I believe the best option is using the "Bank of Mom and Dad" because this gives the kids much more incentive to save their money since parents are much more likely to offer a noticeable interest amount. This also gives parents a chance to get involved with their kids at another level and have fun with them.

If neither of these options work for you there is a respectable option in INGs Orange Savings Account.

We used to use visa bux and cobalt card, not sure if they are around anymore but maybe somethin to look into.

That's a really good question and not seen any that offer a teaching program. They are a lot of good bank out there, I think it's important for you as a parent to teach them how important it is by opening a account that will be for them when they are adult, and showing them how it grows and how they should contribute to it.

It's called iThryv.com http://news.cnet.com/1606-2_3-50003649.html

My mom helped me open a Bank of America savings account when I was very young. It was free, and extemely educational. Here is there stance on teaching children about money.

"Teach Children about Money

Teaching your children about our complex financial system may seem daunting, but you can help put your child on the right track by encouraging smart habits now. Plus, answering your children's questions honestly and in terms they'll understand can help them begin life on sound financial footing.


Make saving fun
An ideal time to begin teaching your children about the basics of money is when they first begin to notice it. In a child's world, money comes from Mom and Dad's pockets. When they can't understand why you can't meet their every demand, consider explaining that money is earned by working and that you can only spend what you earn.

Even young children can begin to understand the concept of earning money. To help them understand what it's like to get paid on a schedule, begin paying an allowance. Then help them set goals for how they spend and save their allowance. (Experts differ on whether or not allowances should be tied to household chores. Although many people say children will learn more about personal responsibility if they are not paid for pitching in around the home, others feel it teaches them valuable lessons about working and earning.)

A simple savings lesson involves using a piggy bank, shoebox, or empty jar. Make the lesson fun by having your children decorate the "bank," while explaining to them how you also use a real bank to save your money. Encourage your children to save a portion of their allowance for a special goal. As they save money, you might reward them with a small additional amount, just like a bank pays interest. At the end of each month, calculate how much they have saved and then chip in a certain percentage as interest.

Last, to further encourage the learning process, you might consider plotting a visual chart of their savings (include the goal) so they can easily see their savings grow. Remember to keep it as simple as possible, geared toward each child's level of understanding.

Compounding
As your children get older and perhaps take on part-time jobs to earn more money, their savings will likely amass at a quicker rate. Now is the time to review the lesson of compounding, or the ability of interest to build upon itself. Explain how compounding can be more dramatic over time; the longer money is left alone, the greater the effect. This can lead into a discussion about investing and how certain investments can have a greater ability to compound over time.

Giving a gift of stocks of well-established or kid-oriented companies can be ideal ways to teach your children about investing. Some companies even have shareholder meetings directed to children.

Mutual funds may be good vehicles as well. Some fund companies have specific programs to teach children about investing. Often such funds have low initial investments, as well as marketing materials designed to make the investing process fun. "

I have been a member of USAA Federal Credit Union for years; in fact, I started with one of their youth accounts. The level of service really cannot be beat and they have several youth banking options.