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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.

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.

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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

Rates last updated November 21st, 2017
$
$
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
Bankwest Hero Saver
2.60%
0.01%
2.59%
$0
$0 / $0
Ongoing, variable 2.60% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
ING Savings Maximiser
2.80%
1.35%
1.45%
$0
$0 / $0
Ongoing, variable 2.80% p.a. when you link to an ING Orange Everyday bank account and deposit $1,000+ each month (and from 1 March 2018 make 5+ card purchases a month). Available on balances up to $100,000.
HSBC Serious Saver
3.00%
1.60%
1.40%
$0
$0 / $0
Introductory rate of 3.00% p.a. for 4 months, reverting to a rate of 1.60% p.a. Available on balances below $1,000,000.
ANZ Progress Saver
1.81%
0.01%
1.80%
$0
$10 / $10
Ongoing, variable 1.81% p.a. when you deposit $10+ each month and make no withdrawals. Available on the entire balance.
Westpac Life
2.30%
1.50%
0.80%
$0
$0 / $0
Earn up to 2.30% p.a. interest. No monthly account-keeping fee. Set savings goals and track your progress.
CUA eSaver Boost Account
2.75%
0.25%
2.50%
$0
$0 / $1
Ongoing, variable 2.75% p.a. when you make a total deposit of at least $250 and no withdrawals in a calendar month. Available on balances up to $500,000.
HSBC Flexi Saver Account
2.50%
1.25%
1.25%
$0
$0 / $0
Ongoing, variable 2.50% p.a. when you deposit $300+ each month (other conditions apply). Available on balances up to $5,000,000.
Bank Australia Bonus Saver Account
2.60%
0.15%
2.45%
$0
$0 / $1
Ongoing, variable 2.60% p.a. when you deposit at least $100 and make no withdrawals. Available on the entire balance.
Westpac Reward Saver
1.50%
0.01%
1.49%
$0
$0 / $0
Ongoing, variable 1.50% p.a. when you deposit at least $50 and make no withdrawals each month. Available on the entire balance.
Bank Australia mySaver Account
2.60%
0.15%
2.45%
$0
$0 / $10
Ongoing, variable 2.60% p.a. when you deposit $10+ each month and make no withdrawals. Available on balances $10+ and to customers under the age of 25.
Westpac eSaver
2.51%
1.00%
1.51%
$0
$0 / $0
Introductory rate of 2.51% p.a. for 5 months, reverting to a rate of 1.00% p.a. Available on the entire balance.
ANZ Online Saver
2.55%
0.80%
1.75%
$0
$0 / $0
Introductory rate of 2.55% p.a. for 3 months, reverting to 0.80% p.a. Available on the entire balance.
St.George Maxi Saver
2.60%
0.80%
1.80%
$0
$1 / $1
Introductory rate of 2.60% p.a. for 3 months, reverting to a rate of 0.80% p.a. Available on the entire balance.
Citibank Online Saver
2.85%
1.70%
1.15%
$0
$0 / $0
Introductory rate of 2.85% p.a. for 4 months, reverting to a rate of 1.70% p.a. Available on balances below $500,000.
Bank of Melbourne Incentive Saver
2.00%
0.80%
1.20%
$0
$1 / $1
Ongoing, variable 2.00% p.a. when you make at least one deposit and no withdrawals each month. Available on the entire balance.
Bank Australia Online Saver Account
1.65%
1.65%
0.00%
$0
$150,000 / $5,000
Ongoing, variable rate up to 1.65% p.a. when you link to a Bank Australia Everyday Access or Pension Access or a mortgage offset account. Available on balances more than $5,000.
BankSA Maxi Saver
2.60%
0.80%
1.80%
$0
$1 / $1
Introductory rate of 2.60% p.a. for 3 months, reverting to a rate of 0.80% p.a. Available on the entire balance.
BankSA Incentive Saver Account
2.00%
0.80%
1.20%
$0
$0 / $0
Ongoing, variable 2.00% p.a. when you make at least one deposit each month and no withdrawals. Available on the entire balance.
Bank of Melbourne Maxi Saver
2.60%
0.80%
1.80%
$0
$0 / $0
Introductory rate of 2.60% p.a. for 3 months, reverting to 0.80% p.a. Available on the entire balance.

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.

Tim Falk

A freelance writer with a passion for the written word, Tim loves helping Australians find the right home loans and savings accounts. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

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Savings Account Offers

Learn about our information service
HSBC Serious Saver

Maximum Variable Rate

3.00

Standard Variable Rate

1.60
Bankwest Hero Saver

Maximum Variable Rate

2.60

Standard Variable Rate

0.01
Bank Australia Bonus Saver Account

Maximum Variable Rate

2.60

Standard Variable Rate

0.15

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