The Finder Score is a simple score out of 10. The higher a savings account's score, the better we think it is for the average customer.
We score each savings account in our database of hundreds based on a data-driven methodology with 2 main criteria: Does the account offer a high interest rate? And is it easy for savers to actually earn that rate?
Yes, some banks and credit unions provide accounts for children under 18. You can open any such account in your baby’s name, provided you (as the parent or legal guardian) and your baby meet some basic eligibility criteria.
A typical baby account provides some level of interest, with some accounts letting you earn bonus interest as well. Baby bank accounts tend not to charge ongoing account-keeping fees. However, they may come with some deposit requirements along with restrictions on withdrawals.
"I opened a Life Saver Account with The Greater Bank for my daughter when she was only a few months old. The account is in mine and my husband's name for now as joint signatories until she's older. We had to go into a branch to do this.
Her grandparents, aunties and uncles love to gift her small amounts of money for things like Christmas and her birthday. It's so handy that they can send it straight into her account, instead of giving small bits of cash in a card. I'm she will be very grateful when she's 18!"
Banks which offer accounts for children typically make the process easy. While it may vary between banks, once you've found the right account for you these are typically the steps to open an account:
To open an account for your child you will need a form of ID for yourself as the parent or guardian as well as a form of ID for your child, such as their birth certificate. You may also need to provide evidence of you being their parent or guardian such as a birth certificate or court order.
Check how your chosen bank requires you to open an account - in branch or online. Some banks will need you to go into a branch and bring physical hard copies of your ID and birth certificate.
Because child bank accounts are typically used for saving and will therefore accrue interest, you need to provide either your own or your child's tax residency and Tax File Number (TFN). If the account is only holding small amounts of money you generally won't need to pay tax on the interest.
Savings accounts for kids
A Finder survey found that while only 9% of Australian kids under the age of 12 had a debit card, 57% had a savings account.
Source:
Finder Parenting Report 2023
No, you cannot open a bank account for your baby before they're born. To open a baby bank account you’ll have to provide your baby’s birth certificate.
You get this document only after your baby is born.
Regarding who is responsible for paying tax on the interest earned, this essentially depends on who owns and uses money in the account.
You, as the parent, would own the money if you’ve added funds in the account and spend it as per your liking. Even if you're spending the money on items for the baby, it is still classed as your spending.
In this case, you’ll have to include the interest earned in your income tax return.
The funds in the account can come in the form of pocket money, birthday presents, Christmas presents and savings from part-time earnings (when they're older). In this case, if nobody other than the child uses these funds then the interest earned becomes the child’s income.
The child does not have to lodge a tax return if their only source of income is interest not exceeding $416 for the year. If the bank withholds pay as you go (PAYG) tax, the child should file for a refund.
This is a business bank account with no monthly account keeping fees and a free ANZ Business Visa Debit card.
Virgin Money Go bank account: Pay no monthly account fees, earn points as you spend and earn bonus interest on a linked Virgin Money savings account.
Pay $0 account keeping fees and make payments using Apple Pay, Google Pay or Samsung Pay with your MyState Glide Account.
Revolut is available for download in Australia. This review will tell you what you need to know about the multi-currency account before you sign up.
Kickstart your child’s savings with a Bump Savings Account from Westpac that offers bonus interest each month you grow your balance.
ANZ vs Commonwealth Bank: which bank has the right accounts and services for you? Find out here.
Member-owned Credit Union SA offers a varied portfolio of banking products with low fees and full access to your accounts through online banking.
World travellers benefit with Qudos rewards points when they choose the Qudos Bank to hold on to their savings.
The Australian Military Bank Military Kids Account is for those up to 17 years of age. It provides easy access to funds and lets you earn interest.
Every wondered what the process was for your debit card when you made an electronic transaction?
I wanna open a account for my baby daughter’s
Hi Barbara,
Thank you for reaching out to Finder.
This page offers you with a wide selection of banks that offer bank accounts for children. You may click on the “More” button to be lead to our review of that specific bank account. The review page also offers you a way on how to apply for the account as well as requirements that needs to be met. Hope this helps!
Cheers,
Reggie