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Kids bank accounts

A kids bank account can help teach your children about money and encourage them to develop good money habits early on.

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Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Intro Period Government Guarantee Monthly Max Rate Conditions
MyState Bank Bonus Saver Account
MyState Bank Bonus Saver Account
  • Deposit $20
  • 5 debit card purchases
Deposit $20, 5 debit card purchases.
Virgin Money Grow Saver
Virgin Money Grow Saver
  • No more than 1 deposit
  • 32 days' notice for withdrawals (Lock Saver)
No more than 1 deposit , 32 days' notice for withdrawals (Lock Saver) .

Compare up to 4 providers

A kids bank account is a great way to teach your children about money and encourage them to get excited about saving. Some banks offer dedicated youth or children's accounts, while some allow you to open the standard bank account in trust for your child.

Looking for a prepaid card for your kid's pocket money?

Spriggy is a mobile app with a linked prepaid card which helps Australian parents and their kids to manage their money together and track their progress in a fun, interactive app.

  • $30 per year for each child
  • Pre-paid Visa debit card accepted anywhere
  • Cards come in a range of funky, kid-friendly designs
  • Keep tabs on your kid's spending, saving and chores via the Parent Wallet

Try the app for free for 30 days. Sign up online in 2 minutes or less by clicking the "Go to site" button.

How do kids bank accounts work?

A kids bank account works like a conventional bank account, but with age limits. Kids bank account holders should be under 18 years of age. Some kids bank accounts act like savings accounts and offer bonus interest. These can require you to make minimum deposits each month and not make any withdrawals.

How do I compare kids bank accounts?

Accounts meant for kids can vary in terms of features they come with, so pay attention to the following factors when comparing your options:

  • Interest. The standard variable rate that kids savings accounts offer can vary noticeably. Most such accounts let account holders earn bonus interest if they meet certain conditions, and this bonus interest rate varies from one account to the next.
  • Bonus interest conditions. Kids who start earning through part-time jobs can benefit by opening accounts that offer bonus interest, provided they meet certain conditions. To earn bonus interest account holders typically have to make deposits regularly, and they should not make any withdrawals.
  • Access to funds. This factor plays an important role if your kid needs to access funds in the account from time to time. Access to funds can come via a debit card, phone banking and online banking. Some offer account access via branch banking and Bank@Post outlets, and some allow direct debits and direct credits as well.
  • Fees. Kids bank accounts tend not to charge any ongoing account keeping fees. Fees you may have to pay from time to time can include card replacement fees, over-the-counter withdrawal fees, overseas ATM fees and cheque dishonour fees, and these can vary from one bank to another.
  • Age requirement. The age requirement of these accounts can vary as well. While some accounts are for those up to 18 years of age, the maximum age in some cases is 15 or 16 years.
  • Debit card access. Some kids bank accounts will come with a debit card, but you typically need to be 14 to get a debit card in your own name. If your child is under 14, they might have access to a rediCARD or Handycard instead (these are similar to debit cards, but with limited use for online purchases).

Benefits of a kids bank account

  • Interest earning potential. Kids savings accounts let account holders earn interest through standard variable rates, and many even let them earn bonus interest by meeting some basic requirements. Such accounts give kids simple means to make the most of their money.
  • No fees and charges. Banks tend not to charge any ongoing account keeping fees for the kids accounts they offer, and they also try to keep other fees and charges low.
  • Easy access to funds. The money isn't locked away like a term deposit, so you can instantly access it if you need it.
  • Learn about money. Your child can watch their balance grow using the mobile banking app or Internet banking platform.

Examples of kids bank accounts with interest

Product nameAge limitsMaximum variable rate
CUA Youth eSaver Account10⁠–17 years3.25%
Bankwest Children's Savings Account0⁠–15 years0.3%
CommBank Youthsaver Account0⁠–18 years0.95%
People's Choice Young Saver Account0⁠–18 years1.1%
Suncorp Kids Savings Account0⁠–18 years1.00%

Frequently asked questions

Q. Does a kid under 16 years of age have to provide a tax file number?

No, this is not a requirement, but make sure you get the account marked as an "Under 16 ⁠– TFN Exempt" account.

Q. Who pays tax on a kids bank account?

You only need to pay tax on interest earned on your money, and bank accounts don't typically earn any interest. However, if you have a savings account in your child's name you may need to declare this interest on your tax return.

This comes down to who uses the money in the account. If the money in the account is used by the parent (even if it's to buy things for the child, like school books or toys) the interest earned should be declared on the parent's tax return. If the money in the account is deposited and used by the child (e.g. money given as birthday or Christmas gifts), then the interest earned doesn't need to be declared on the parent's tax return.

Q. My kid is less that 12 years old so should I open an account as a trust?

You can open the account by adding yourself as a signatory, which you can later transfer to the child.

Q. Can I use my child’s account to benefit through the tax-free threshold?

Any money you transfer to your kids bank account, you have to declare in your tax return, so taking this route will lead to no benefit on the taxation front.

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