Designed to encourage young Australians to save, the Youthsaver Account pays interest on the balance, and then adds a bonus to that each month you are able to meet their terms. Pay no monthly fees, and use CommBank facilities to make your withdrawals and you can avoid any transaction fees as well.
What are the features of the Commonwealth Bank Youthsaver Account?
Starting a savings account for a young Australian is a good way to get them started on responsible savings. To make the most of this type of account, check the ones being offered by other banks, and compare their features to these that you get from Commonwealth Bank:
The base rate for this account is nominal.
For each month that a deposit is made into the account, and no money is withdrawn, you will earn a maximum interest rate of 2.30%.
Interest is calculated on the balance each day and paid into the account quarterly, starting in March, June, September and December. The interest rate is variable, which means it could change according to the movements of the RBA cash rate.
No monthly account keeping fees
You are not charged any monthly fees for this account.
Bank at School
This program is designed for primary school students, and allows them to bank at school if the school is a part of the CommBank School Banking Program.
You can make withdrawals from the account for free using any CommBank ATM or branch in Australia. You also get unlimited access to your account through CommBank’s award winning NetBank. Just remember, each month you make a withdrawal you forfeit your interest.
This account is intended for Australians under the age of 18. However, if you are under 13 you will need a parent or guardian to open the account for you, and for a Keycard to be issued. They can also link their CommBank NetBanking to the Youthsaver for easy access.
You can use Cirrus and Visa Plus ATMs abroad to make cash withdrawals, but you will be charged $5 plus 3% of the transaction amount. If you like the features of these accounts it might be a good idea to look over some of the other Commonwealth Bank Savings Accounts, including ones designed specially for students, retirees and almost anyone else who wants to save more money.
To see how much interest you will actually earn, in real dollar amounts, you might also consider using a savings calculator to compare accounts in detail.
- No account keeping fees
- Phone and internet banking available
- Counter service available
- Competitive interest rate available
- International fees apply on transactions made abroad
- There may be withdrawal fees from non-Commonwealth bank ATMs
How do I apply for the Commonwealth Bank Youthsaver Account?
If you are new to Commonwealth Bank both the account holder and signatory adult if applicable will need to visit a local branch to apply for the account. If you are already a Commonwealth Bank customer you are able to apply for the Youthsaver Account through NetBank by applying online but there are special conditions for applying online.
Eligibility to apply
Check with the following eligibility requirements before proceeding with the application:
- Minimum age. You must be under 18 to be eligible for this account, but if you are under 16 a parent or guardian must complete the application for you. Adults over 18 may apply on behalf of their child, grandchild, niece or nephew but accounts cannot be opened through a trust.
- Residency requirements. You will need to be able to provide an Australian residential address when applying for this account.
- Depository requirements. While no opening balance is required, keep in mind that in order to receive the bonus interest applied to your balance you must make at least one deposit per month and make no withdrawals.
When applying, you will need to have certain documentation readily available to ensure that you are able to complete the application in its entirety:
- Tax file number. Commonwealth Bank will ask for your tax file number (TFN) or exemption code. This will allow them to withhold tax on your interest earnings as applicable.
- Identification. A driver’s licence or passport can be used to help verify your identity online. For those under 16, the applicant should be prepared to provide information from the birth certificate.
What happens after I open an account?
New accounts are opened in real time, so the next time you log onto NetBank you will see your Youthsaver account. Within three days it will be activated and ready to use.