What happens when my child reaches the maximum age for a kids’ bank account?
There are a few things to consider once your child reaches the maximum age for their kids' bank account. Learn more about the options and what you should consider here.
We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder.
Kids’ bank accounts are specially designed to help children save money and learn how to manage their finances. There’s a wide range of accounts available, but all of them have a maximum age limit, and your child must be under the age specified in order to open one.
It’s important to find out what happens to the account when your child reaches the cut-off age. If you’re not careful they could be left with a sizable dent in their bank balance.
What age limits apply?
Kids’ bank accounts come with a variety of age limits depending on the terms and conditions imposed by the bank. Popular age limits include:
- 18 years of age. This is the most common age limit quoted and is the maximum cut-off age available. Accounts with this age limit include the Commonwealth Bank Youthsaver Account and the Suncorp Kids Savings Account.
- 17 years of age. The CUA Youth eSaver Account carries this age limit.
- 15 years of age. Accounts with a cut-off age of 15 include the Bankwest Kids’ Bonus Saver and the Bankwest Children’s Savings Account.
- 12 years of age. This limit applies to accounts specifically designed to act as first bank accounts for younger children, and includes the Westpac Kids Reward Saver and the Bendigo Bank PiggySaver Account.
Your child’s bank account may have a limit that is not listed above, so check the fine print for full details.
The latest in banking
Some quick money lessons to teach your teen.Read more…
Kickstart your child’s savings with a Bump Savings Account from Westpac that offers bonus interest each month you grow your balance.Read more…
If you’re looking to open a bank account for your child, compare the bank accounts for 5-10 year olds and learn about the essentials of kids banking along the way.Read more…
If you’re unsure about opening an account for your child, here’s how kids bank accounts are different from regular bank accounts.Read more…
A savings account for kids under the age of 13, the bcu Scoot Super Saver Account pays an ongoing interest rate with no deposit conditions to meet.Read more…
Encourage your kids to save with these free toys, games and discounts from children’s banking programs across the country.Read more…
What happens when my child reaches the maximum age?
Depending on the terms and conditions of your account, either of the following could occur:
1) The kids’ bank account converts to another type of account
This is the most common outcome. Banks obviously want to retain your child’s business, so their kids’ account could automatically convert to an adult account when they turn 18, or a different children’s account if the maximum age is lower than 18.
2) The account is closed
Some banks will automatically close the children’s savings account and “sweep” all funds into a linked transaction account.
Once again, it’s important to check the terms and conditions associated with your child’s account to make sure you’re aware of what will happen to their funds.
Ready for a regular savings account? Compare these below
Traps to avoid
A common trap Aussie kids face when they reach the cut-off age is that their children’s account automatically converts to a different type of account that has a monthly fee. This ongoing charge can quickly start to eat away at their balance without them even realising it.
Other account conditions may also come into play, such as minimum balance requirements and limits on the number of withdrawals, and not abiding by these new rules may incur fees.
Changes to interest rate
Your child’s new account may have a different interest rate from what they enjoyed previously. Children’s savings accounts often offer better interest rates than the rates available on adult accounts, due to the fact that kids generally have smaller bank balances. Check what the interest rate will be on the new account. It might be worth shopping around to see if you can find a better rate elsewhere. Remember, as with all variable interest rates offered by banks, it can move up and down in line with the RBA Cash Rate.
More guides on Finder
Here’s why school banking programs like CBA’s Dollarmites are under review
Corporate watchdog ASIC wants to make sure school banking programs are benefiting Australian kids, not just the big banks.
How to buy cryptocurrency with your bank account
Want to buy cryptocurrency using your bank account but don’t know how? Find out everything you need to know in this comprehensive guide.
Can I transfer money from a credit card to a bank account?
Weigh up your options when you want to transfer funds from a credit card to a bank account.
Spriggy: An app to help Aussie kids manage their pocket money
Spriggy is an app and prepaid card that helps Australian kids understand how to manage digital money, with the help of their parents.
Australia’s youngest banking customers
When it comes to teaching kids about money, new finder.com.au research shows nearly half of Aussie kids have a bank account by the time they turn one. Find out how to set up an Australian bank account for your child.
Delphi Bank Midas Account
If you have a specific savings goal that you want to meet fast, while not paying any account keeping or transaction fees, the Delphi Bank Midas account may be the right savings account for you. Look closely at the interest rates and terms being offered by other banks and choose the one that will get you to your big purchase quickest.
CBA launches kids banking app
The new CommBank Youth app is the first in Australia to provide kids real-time access to their bank accounts.
What are my options when my term deposit matures?
What happens to the money in your term deposit account at maturity? Find out here.
BDCU Alliance Bank Junior Bonus Saver Account
With a competitive bonus interest rate, Internet and phone banking access and no monthly fees, the BDCU Alliance Bank Junior Bonus Saver Account rewards regular savers under the age of 18.
Ask an Expert