Get the Finder app 🥳

Track your credit score

Free

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:

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

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

Data indicated here is updated regularly
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Interest Earned
Westpac Life (18-29 year olds only)
3%
0.4%
2.6%
$0
You can earn an ongoing, variable 3% p.a. each month you grow your balance (excluding interest earned) and make 5+ debit card purchases from your linked Westpac Choice transaction account. The maximum variable rate of 3% p.a. is available on balances up to $30,000 for customers aged 18-29.
Westpac Life (18-29 year olds only)
0.75%
0.4%
0.35%
$0
You can earn an ongoing, variable 0.75% p.a. each month you grow your balance (excluding interest earned) and make 5+ debit card purchases from your linked Westpac Choice transaction account. The maximum variable rate of 0.75% p.a. is available on balances up to $30,000 for customers aged 18-29.
MyState Bank Bonus Saver Account
1.5%
0.15%
1.35%
$0
Ongoing, variable 1.5% p.a. when you deposit at least $20 into the account each month and make 5 or more Visa Debit card transactions from a linked MyState transaction account. Bonus interest available on balances up to $250,000.
Bankwest Hero Saver
1.15%
0.01%
1.14%
$0
Ongoing, variable 1.15% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
Bankwest Hero Saver
0.01%
0.01%
0%
$0
Ongoing, variable 0.01% p.a. rate when you deposit at least $0 each month and make no withdrawals. Available on balances up to $250,000.
Westpac Life
0.75%
0.4%
0.35%
$0
Ongoing, variable 0.75% p.a. each month you deposit money, and make sure your balance is higher at the end of the month than it was at the beginning. No monthly account-keeping fee.
loading

Compare up to 4 providers

Traps to avoid

Monthly fees

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.

New requirements

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

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site