Help your kids earn a little extra pocket money

Introduce your kids to the world of saving by getting them to open a bank account.

Teaching children about the importance of banking and how the system works can never start too early, and what better way than for them to actually open and use their own bank accounts. Fortunately, many Australian banks provide bank accounts and debit cards for kids, as well as savings accounts for kids that help them earn interest on their pocket money.

MyState Bank Bonus Saver Account

MyState Bank Bonus Saver Account

2.25 % p.a.

max rate

0.55 % p.a.

standard variable rate

MyState Bank Bonus Saver Account

Ongoing, variable 2.25% p.a. when you deposit at least $20 into the account each month and make five or more Visa Debit card transactions from a linked MyState transaction account.

  • Maximum Rate: 2.25% p.a.
  • Standard Variable Rate: 0.55% p.a.
  • Monthly deposit required: $20.00
  • Monthly fees: $0.00
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Compare kids bank accounts

Rates last updated November 17th, 2019
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
MyState Bank Bonus Saver Account
2.25%
0.55%
1.70%
$0
$0 / $0
Ongoing, variable 2.25% p.a. for kids aged 13 or over, when they deposit at least $20 into the account each month and make five or more Visa Debit card transactions from their linked MyState transaction account. Online application available.
AMP Saver Account
2.36%
1.40%
0.96%
$0
$0 / $0
Introductory rate of 2.36% p.a. for 4 months, reverting to a rate of 1.40% p.a. with no withdrawal or deposit conditions. Available on balances below $5,000,000. This account can be opened on behalf of kids under the age of 18 by a parent or guardian. T&Cs apply.

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Rates last updated November 17th, 2019
$
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
MyState Bank Glide Account
Visa
$0
$0
This account can be opened for children under 18. Upon turning 10, the child can be nominated as an account signatory with written consent from the account opener. If your child is over the age of 14, they can open this account themselves in their own name and receive access to a Visa Debit card with a daily withdrawal limit at ATMs, EFTPOS and Bank@Post.
NAB Classic Banking
Visa
$0
$0
Easily transfer pocket money via Internet banking or the NAB app to allow children to make purchases and obtain cash withdrawals using their debit card. The debit card can be accessed by a child aged 14 or over once a parent or guardian opens the account and gives them joint authority to operate it.
Commonwealth Bank Smart Access
Mastercard
$0
$2,000
Get unlimited CBA electronic transactions using internet banking, phone banking, ATM and EFTPOS.

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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 child'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 little differences. For example, most accounts come with age limits. Kids' bank account holders should be under 18 years of age. Some kids’ bank accounts offer bonus interest, and to earn this interest account holders have to meet certain criteria. These can include making minimum deposits each month and not making any withdrawals.

Some such accounts offer competitive standard rates, and with these accounts your kids stand to earn interest without having to meet any deposit or withdrawal requirements. How your child can access funds depends on the chosen account.

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How do I compare kids bank accounts?

Accounts meant for children 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 these 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. Children 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.
  • Banking programs. Some banks offer programs for children to help them learn about saving and finances. These programs can also offer rewards and freebies.
  • Access to funds. This factor plays an important role if your child 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 from time to 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 years and 16 years.
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Why should I open a kids bank account?

Pros

  • Interest earning potential. Most kids’ bank account 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 children simple means to make the most of their money.
  • 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. These accounts offer access to funds in different ways, so you or your child can pick one in accordance to individual needs.

Cons

  • Taxes. If any such account earns $416 or more as interest during a tax year, it is subject to tax, and the account holder will have to file an individual tax return.
  • Bonus interest requirement. Most such accounts require that account holders should not make any withdrawals in a month to earn bonus interest, which is not easy for kids who want access to money in their accounts.
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Compare high interest savings accounts

If you're simply looking to open a savings account to start a nest egg for your child, and don't necessarily need the account to be opened in your child's name, you can consider opening a regular high interest savings account.

Rates last updated November 17th, 2019
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
Rabobank Online Savings High Interest Savings Account
2.50%
1.05%
1.45%
$0
$0 / $0
Maximum variable rate of 2.50% p.a. for 4 months, reverting to a rate of 1.05% p.a. No deposit or withdrawal conditions. Available on balances below $250,000
MyState Bank Bonus Saver Account
2.25%
0.55%
1.70%
$0
$0 / $0
Ongoing, variable 2.25% p.a. when you deposit at least $20 into the account each month and make five or more Visa Debit card transactions from a linked MyState transaction account.
Bankwest Hero Saver
1.85%
0.01%
1.84%
$0
$0 / $0
Ongoing, variable 1.85% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
Suncorp Growth Saver Account
1.95%
0.20%
1.75%
$0
$0 / $0
Ongoing, variable 1.95% p.a. when you grow your balance by at least $200 (excluding interest) and make no more than one withdrawal in the month. Available on the entire balance.
ANZ Progress Saver
1.60%
0.01%
1.59%
$0
$10 / $10
Ongoing, variable 1.60% p.a. when you deposit $10+ each month and make no withdrawals. Available on the entire balance.
AMP Saver Account
2.36%
1.40%
0.96%
$0
$0 / $0
Introductory rate of 2.36% p.a. for 4 months, reverting to a rate of 1.40% p.a. The bonus rate offer is for new AMP Saver customers only, and applies to the first $250,000 deposited.

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What are the risks?

It's not so much a risk, but account holders stand to lose out on earning bonus interest each month they don’t meet the required criteria. Children don’t have to worry about losing money in their accounts because the Australian Government guarantee for deposits of up to $250,000 applies on these accounts.

Parents should not think about using these accounts to hide their own money because the Australian Tax Office (ATO) has very strict guidelines about the operation of such accounts. If you’re worried about your child accessing funds in the account more often than requited, you can consider opening an account that offers access to funds in limited ways.

Search and compare childrens' bank accounts

Product nameAge limitsMaximum variable rate
CUA Youth eSaver Account10 - 17 years3.50%
Bankwest Children's Savings Account0 - 15 years0.25%
CommBank Youthsaver Account0 - 18 years1.85%
People's Choice Young Saver Account0 - 18 years1.90%
Suncorp Kids Savings Account0 - 18 years1.80%

Have more questions about kids bank accounts?

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

No. 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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