Looking for a suitable first bank account for your child? Compare bank accounts here.
A kids bank account is often your child’s first ever encounter with money concepts such as “saving” and “interest”. It’s also an effective tool to grow your child’s savings, which can go a long way towards financial security for your child in the future.
If you’re looking to open a bank account for your child, compare the bank accounts below and learn about the essentials of kids banking along the way.
Compare bank accounts for 5-10 year olds
What you’ll need to open a kids bank account
As the parent or legal guardian of the child whose bank account it is, you will need to supply important pieces of documentation before your kid can start making deposits, including:
- Valid photo ID for yourself (this may not be required if you are already a customer with the same bank)
- Your Tax File Number (TFN)
- Your child’s birth certificate
You may also need to sign a guarantee of indemnity before the account is opened.
What are the tax implications of opening a kids bank account?
Do I need to declare the interest earned from my child’s account in my tax return?
If you provide the money for your child’s account and spend it, you need to declare the interest earned.
If my child contributes to the bank account and deposits money into it, do they need to declare it in their income tax return?
If the account earns less than $120 per year in interest, no tax applies.
If your child is under the age of 16 and earns between $120 and $420 in interest and provides their date of birth or a TFN, then the bank won’t withhold tax and the child will not have to lodge a tax return. If no date of birth or TFN is provided, tax will be withheld at the top rate and your child will need to lodge a tax return to get a refund.
If your child is under 16 and earns $420 or more in interest each year, if they provide their TFN the bank will not withhold tax. If no TFN is provided, tax will be withheld at the top rate and your child will need to lodge a tax return to get a refund.
If the child is 16 or 17 years old, earns $120 or more in interest per year and provides their TFN, the bank will not withhold tax. If no TFN is provided, tax will be withheld at the top rate and your child will need to lodge a tax return to get a refund.
For more information, take a look at our guide on the tax implications of opening a kids bank account.
The latest in kids banking
Some quick money lessons to teach your teen. Read more…
One quarter of Australian kids under 12 don’t have a savings account, but those that do have an average of $251 saved, according to new research. Read more…
Kickstart your child’s savings with a Bump Savings Account from Westpac that offers bonus interest each month you grow your balance. Read more…
If you’re unsure about opening an account for your child, here’s how kids bank accounts are different from regular bank accounts. Read more…
A bonus saver account for kids under the age of 13, the bcu Scoot Super Saver Account pays bonus interest when your child deposits at least $20 per month and withdraws no more than $5 in the same month. Read more…
Encourage your kids to save with these free toys, games and discounts from children’s banking programs across the country. Read more…
Children’s banking programs
When considering a bank account for kids, it’s worth taking a look at the banking programs offered. Children’s banking programs offer educational resources and rewards to help children learn about money.
Below is a list of children’s banking programs offered in Australia.
|The CommBank School Banking program||Children receive a token every time they make a deposit into their CommBank Youthsaver Account. These can be exchanged for a variety of toys and games as rewards.|
|bcu Scoot’s Zone||An online club where children can play a range of interactive games, ask money questions and access articles, special deals and discounts.|
|Hume School Banking||Students who open a Clancy Koala savings account are rewarded with bonus interest when they deposit at least $10 per month and do not make any withdrawals. Students also receive an annual Junior Saver Club activity book and can win a range of prizes each term for saving.|
|Bendigo Bank School Banking||Bendigo Bank runs specific programs to help improve the financial literacy of primary and secondary school students through its local branches.|
|IMB School Banking||Kids can access worksheets, savings tips, interactive games, downloadable activities and colouring-in sheets to help them understand the ins and outs of money management.|
|The Mutual Bank@School program||The Bank@School program sees The Mutual visit each school once a week to provide the banking service.|
finder.com.au’s featured children’s bank accounts for 5-10 year olds
|Bank account||Age limits||Maximum variable rate|
|Bankwest Kids’ Bonus Saver||0-15|
|People's Choice Young saver account||0-18|
|Bendigo Bank Piggy Saver Account||0-12||1.25%|
|P&N Way Cool Saver||0-15||1.75%|