Children’s bank accounts for 5-10 year olds

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

Initial Deposit

$

Monthly Deposit

$

Period

months

Calculate

		Maximum Variable Rate p.a.	Standard Variable Rate p.a.	Minimum Age Requirement	Maximum Age Requirement	Interest Earned
	Bankwest Kids' Bonus Saver Ongoing, variable 4.75% p.a. when linked to a Bankwest Children's Savings Account and you deposit $25-$250 each month. Available for children under the age of 15.	4.75%	0.01%	No Minimum Age	15		More
	P&N Way Cool Saver Ongoing, variable 1.75% p.a. available on balances up to $4,999.	1.75%	1.75%	No Minimum Age	15		More
	Bendigo Bank PiggySaver Account Ongoing, variable 1.25% p.a. .Available on the entire balance. Designed for kids under 12.	1.25%	1.25%	No Minimum Age	12		More
	Westpac Reward Saver - Under 12 Ongoing, variable 1.50% p.a. when a deposit of any amount and no withdrawals are made each month. Available on the entire balance.	1.50%	0.01%	No Minimum Age	12		More
	Bankwest Children's Savings Account Ongoing, variable 2.50% p.a. when you link to Kids’ Bonus Saver from Bankwest. Available on balances $20,000 and over	2.50%	2.50%	No Minimum Age	15		More
	Suncorp Kids Savings Account Ongoing, variable 2.75% p.a. when you deposit $20+ and make only one withdrawal each month. Available on balances more than $0.01.	2.75%	1.50%	No Minimum Age	18		More
	People's Choice Young Saver Account Ongoing, variable 2.55% p.a. when you deposit $5+ each month and make no withdrawals within the calendar month. Available on the entire balance.	2.55%	1.45%	No Minimum Age	18		More
	Commonwealth Bank Youthsaver Account Ongoing, variable 2.30% p.a. when you make at least one deposit with no withdrawals each month. Available on the entire balance.	2.30%	0.01%	No Minimum Age	18		More

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.

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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.

Encourage your kids to save with freebies and other rewards through your bank’s children’s banking program.

finder.com.au’s featured children’s bank accounts for 5-10 year olds