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Best bank (online or in PA)for childrens savings?

These aren't large savings around 1000 dollars each but am looking for the best custodial accounts with high interest rates for my kids. We prefer the custodial because they don't have to pay taxes on their interest but we also want them to get a good rate?!?! We had their money in our credit union but the interest rates were so low it was pathetic. We have recently gotten our own online accounts but have noticed a lot of the banks require an e checking to open an e savings and get the high rates..looking for a savings or moneymarket for the kids..or would a cd be better???

www.emigrantdircet.com
5.05% no fees no minimums

I don't know if they offer a custodial account but you would be hard pressed to beat the ease of use and the intrest rate.