Kids bank accounts

Want to teach your children about money while also making your life a whole lot easier? A kids bank account can help with this.

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Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees
Bank of Queensland Fast Track Starter Account (for 14-24 year olds only)
2.5%
0.05%
2.45%
$0
Only available to those aged 14-24. Ongoing, variable 2.5% p.a. when you link to an BOQ Day2Day Plus Account, deposit $200+ into the Day2Day account each month from an external account and make 5 eligible transactions a month. Max bonus interest applies on balances up to $10,000. Balances between $10,001 and $250,000 will earn a lower bonus rate. Base rate applies on balances over $250,000.
Virgin Money Boost Saver (18-24 year olds)
1.5%
0.1%
1.4%
$0
Intro rate of up to 1.50% p.a. for the first 3 months and an ongoing bonus rate of 1.20% p.a. thereafter when monthly criteria is met (T&Cs apply). To earn these bonus rates customers aged 18-24 need to deposit at least $1,000/month into your bundled Virgin Money Go Transaction Account and make 5+ transactions/month.
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A kids bank account is a great way to teach your children about responsibility, money, and can even help alleviate some stress on your end! Most Aussie banks offer bank accounts and debit cards for kids - just take your pick. Use our table to compare 40+ bank accounts for children and get teaching today.

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 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 kid can access funds depends on the chosen account.

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 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. 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.
  • 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 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 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 kids 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 kid 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 kid, 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.

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. Kids 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 kids bank accounts

Product nameAge limitsMaximum variable rate
CUA Youth eSaver Account10 - 17 years2.4%
Bankwest Children's Savings Account0 - 15 years0.3%
CommBank Youthsaver Account0 - 18 years0.55%
People's Choice Young Saver Account0 - 18 years1.1%
Suncorp Kids Savings Account0 - 18 years0.95%

Have more questions about kids bank accounts?

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 ay interest. however, if you have a savngs 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?

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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