What a piggy bank account actually is
A piggy bank account is a savings account designed to make saving money visible and rewarding, especially for children. Unlike a regular savings account at a bank, a piggy bank account is usually a physical container—ceramic, plastic, or metal—that you fill with cash. Some banks and fintech companies now offer digital versions that work like savings accounts but use the piggy bank name and interface to make saving feel more tangible and fun.
The physical piggy bank requires no application, no minimum balance, and no fees. You buy one, put money in it, and that's the account. Digital piggy bank accounts, offered by companies like Greenlight, GoHenry, and some traditional banks, let you link to a parent's account and track savings electronically while still maintaining the visual reward of watching a balance grow.
The choice between physical and digital depends on what you want: a physical piggy bank teaches the habit of saving cash without any technology, while a digital version lets you set savings goals, automate transfers, and monitor progress from a phone.
Key Takeaways
- A physical piggy bank requires no setup—you buy one and start saving immediately, with no fees or minimum balance.
- Digital piggy bank accounts link to a parent's bank account and let you track savings goals and automate deposits electronically.
- Physical piggy banks teach cash handling but offer no interest; digital accounts may earn a small percentage on your balance.
- For children, a physical piggy bank is the simplest entry point; digital accounts work better once they understand basic saving habits.
- You can combine both: use a physical piggy bank for daily saving and transfer the contents to a digital account periodically.
Opening a physical piggy bank
Buy a piggy bank from a toy store, department store, or online retailer. Prices range from a few dollars to twenty or more, depending on size and material. Ceramic and metal piggy banks are more durable; plastic ones are lighter and cheaper. Choose one with a removable bottom or plug so you can actually retrieve the money without breaking it.
Once you have it, place it somewhere visible—a child's bedroom, a desk, or a shelf. The visibility matters: studies on saving behavior show that people save more when they can see their progress. Put the first deposit in immediately, even if it's just a dollar or a few coins. That first deposit makes the account feel real.
Decide on a deposit schedule: weekly allowance, birthday money, coins from a jar, or spare change from purchases. The consistency matters more than the amount. A child who adds fifty cents every Friday will save more than one who adds five dollars once a year.
Opening a digital piggy bank account
Digital piggy bank accounts are offered by fintech companies and some traditional banks. Popular options include Greenlight (for ages 6 and up), GoHenry (for ages 6 and up), and Fidelity Youth Account (for ages under 18). Each requires a parent or guardian to open an account first, then link the child's piggy bank to it.
The setup process is similar across providers: download the app, verify your identity with a Social Security number and address, link your bank account or debit card, and then create a sub-account for the child. Most take five to ten minutes. You'll need a valid ID and access to your bank account information.
Once the account is open, you can set savings goals (a bicycle, a video game, a vacation), automate weekly or monthly transfers from your account to the child's, and let the child watch the balance grow in real time. Some accounts earn interest—typically 0.5% to 2% annually, which is small but teaches the concept of money growing on its own.
Choosing between physical and digital
A physical piggy bank is best if you want simplicity, no fees, and a tactile experience. Children learn by handling actual coins and bills, and there's no technology to manage. The downside is no interest earned and no way to track progress except by looking at the piggy bank itself.
A digital piggy bank is best if you want to set specific savings goals, automate deposits, and teach your child to think about money electronically—which is how most transactions happen in adult life. Digital accounts also let you set spending rules (if the child has a debit card attached) and monitor activity from your phone. The downside is that it requires a smartphone or computer to use, and some accounts charge monthly fees if you don't meet minimum balance requirements.
Many families use both: a physical piggy bank for daily saving and loose change, and a digital account for larger goals and automated transfers. When the physical piggy bank gets full, empty it and transfer the contents to the digital account.
What happens when the piggy bank is full
With a physical piggy bank, you have three options: empty it and start over, transfer the money to a digital savings account, or move it to a regular savings account at a bank. Emptying and restarting teaches the cycle of saving and spending. Transferring to a digital account or bank account teaches the next step: keeping money in a place where it earns interest and can't be spent on impulse.
If you choose to open a regular savings account at a bank, the process is different from a piggy bank. You'll need to visit a branch or go online, provide identification, and make an initial deposit. Banks require a minimum opening deposit (usually $25 to $100) and may charge monthly maintenance fees if the balance drops below a certain level. A child's savings account at a bank typically has no monthly fees and earns a small amount of interest.
The milestone of filling a piggy bank is worth celebrating. It shows the child that saving works and that money accumulates over time. Use that moment to talk about what comes next: spending it, saving for something bigger, or moving it to a bank account.
Piggy banks and teaching money habits
A piggy bank is one of the oldest tools for teaching children about saving, and it works because it's simple and visible. Every time a child adds money, they see the piggy bank get fuller. Every time they resist spending money and put it in the piggy bank instead, they practice delayed gratification.
For adults, a piggy bank serves a similar purpose: it's a way to save for a specific goal without the temptation to spend the money. Some adults use physical piggy banks to save for vacation, a car repair, or holiday gifts. Others use digital versions to automate savings without thinking about it.
The key is consistency. A piggy bank only works if money goes into it regularly. Set a schedule—weekly, biweekly, or monthly—and stick to it. The amount matters less than the habit.
Frequently Asked Questions
Do I need a bank account to open a piggy bank?
No. A physical piggy bank requires nothing but the piggy bank itself. A digital piggy bank requires a parent or guardian to have a bank account, but the child doesn't need their own account—the piggy bank is a sub-account linked to the parent's.
Can a child open a piggy bank account on their own?
A physical piggy bank, yes—a child can buy one and start saving immediately. A digital piggy bank, no—a parent or guardian must open the parent account first, then create the child's piggy bank within it. Most digital piggy bank services require the account holder to be at least 18 years old.
Do piggy banks earn interest?
Physical piggy banks do not earn interest. Digital piggy bank accounts may earn a small amount—typically 0.5% to 2% annually—depending on the provider. A regular savings account at a bank usually earns more interest than a digital piggy bank account.
What's the difference between a piggy bank and a savings account?
A piggy bank is a container or a simple digital tool for saving money toward a goal. A savings account is a formal account at a bank or credit union that earns interest, requires identification to open, and may have monthly fees. A piggy bank is a starting point; a savings account is the next step.
Can I use a piggy bank to save for taxes or bills?
You can, but it's not ideal. A piggy bank is best for short-term goals or teaching saving habits. For taxes or bills, a dedicated savings account at a bank is better because the money is safer, earns interest, and you can set up automatic transfers to pay what you owe on time.