I need help keeping 3-year-old's money safe?

Instead of looking for a 'better' bank why not suggest to your friend to put a lock on her bedroom door and window? If they can steal from a 3 year old then they are probably stealing from her mother and father as well. Another thing they might consider is a monthly trip to the REAL bank- and putting half of the money she collects at home in a college fund. She'll probably really like going to the tellers and making the transaction...and then that money can't be stolen at all. Then she can not only count the money she collects but she can also watch the amount of her bank account rise as well.