Kids savings accounts

Best kids savings accounts October 2026:

Here are the Finder Award winners for 2026.

Best Kids Savings Account: Australian Mutual Bank Young Saver Account

Highly commended

• Methodology for best kids savings account

  For the Best Kids Savings Account category, we looked at accounts available for all kids (ages < 18) across Australia. We assume all conditions are met to be eligible for the maximum rate each month.

  When determining the score, 90% weighting was applied to the interest rate and 10% to other features. This includes any restrictions on rate, age, minimum deposit, withdrawals, purchases, balances and notice period requirements that can impact the maximum eligible rate.

Kids' prepaid card and money apps

If you want to teach your child how to spend and save in a safe, kid-friendly way, you could try a prepaid card linked to a money app.

These apps let you set spending limits, track chores and pay pocket money. There is a monthly subscription fee.

Spriggy

More info

$5 per month
Membership fee

ATM withdrawal fees

Visa
prepaid card
Card

• Info
• Features

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.

• 7-day free trial available
• Customised prepaid debit card
• Safe and convenient

• 3.5% surcharge for international purchases
• Membership fee charged as annual lump sum payment

Rewards program	N/A
Annual Fee	$0
Purchase Rate
Welcome offer
Interest-free period	Up to days on purchases
Balance transfer	N/A
Bonus points	N/A
Rewards points per $ spent	N/A
Foreign currency conversion fee

Parents are talking about money more than ever

Money conversations are becoming a normal part of family life. 67% of parents have talked to their child about saving or investing money, and 3 out of 4 kids under the age of 13 receive some sort of pocket money, a clear sign of how seriously today's parents take financial literacy. With these conversations starting earlier, opening the right savings account is often the natural next step in turning that early education into real, lasting habits.

Is there a difference between bank and savings accounts for kids?

There are 2 types of bank accounts:

• Savings accounts. You use this account to hold your savings long term and earn some interest. It is not designed for spending.
• Transaction accounts. You use this account for everyday spending via a debit card. You might be able to earn some interest, but the account is mainly for spending.

Financial products children hold

Financial products children hold

Financial products	2026	2021
Savings account	65%	58%
Debit card	13%	6%
Share trading account	9%	7%
Cryptocurrency account	3%	2%

How to find the best children's bank account

• High interest rate. An account with a high interest rate means your child can earn a bit more interest on their savings.
• No fees. A good kids savings account should have few if any fees. A small monthly fee could quickly eat away at your child's precious savings and discourage them.
• Age requirements they meet. Some banks let you open a savings account at any age. Some banks require the child to be 12 or older. It's important to check before trying to open an account.
• Minimal account conditions. An ideal kids bank account will have a low minimum opening balance, and won't require large deposits every month to qualify for the bonus interest rate.
• Money management tools. A good kids bank account offers app functionality or an online account so your child can watch their savings grow and learn how to manage their money. Some banks won't let a child open an online account until they're 14, or may require parental approval.

• Summary of kids and youth savings accounts

  Bank	Account Name	Maximum variable rate p.a.
  Suncorp Bank	Growth Saver Account	4.30%
  Macquarie	Savings Account	4.60%
  Great Southern Bank	Youth e-Saver Account (0-17 y/o)	5.50%
  First Option Bank	Kids Bonus Saver	4.80%
  ANZ	Progress Saver	3.05%
  Westpac	Westpac Bump Savings	4.25%
  Australian Mutual Bank	Young Saver Account	4.75%
  CommBank	Youthsaver Account	4.30%
  Queensland Country Bank	Star Saver Account	3.25%
  Suncorp Bank	Kids Savings Account	3.55%
  Hume Bank	Clancy Koala Account	4.30%
  BankWAW	Star Saver	4.25%
  IMB	Zoo Account	3.75%
  BCU Bank	Scoot's Super Saver	2.50%
  Police Bank	Dynamo Kid's Savings Account	2.40%
  Bendigo Bank	PiggySaver Account	2.80%

How does bonus interest work on a kids' bank account?

Some banks encourage children to save a little money each month with a bonus rate. A savings account might have a base rate of 2.00%, but a bonus rate that takes the total rate up to 5.00% if you meet the conditions.

This might be saving a minimum amount each month or not making any withdrawals.

Kids are saving more than ever

Parents aren't just talking about saving, they're backing it up with real accounts. 65% of children under 13 have a savings account, up from 58% in 2021, and 1 in 10 kids even have an investing account. It's a clear sign that early conversations about money are translating into real financial habits and the right account can make all the difference in helping those savings grow.

How do I open a bank account for my child?

If you are the parent or legal guardian of a child, you can open a bank account for them at any age. Depending on the age of your child and the bank's policy, you may be able to open a bank account online. Or you may have to visit a branch.

You'll need to provide:

• Evidence of the child's identification. You can use a birth certificate, Medicare card, passport or driver's licence (for older kids).
• Identification for yourself. You should also bring your own ID and proof of your relationship to your child. This includes a Medicare card or birth certificate.

You can choose to be an authorised party on your child's bank account. This gives you some level of access or control over the account, but the level of access depends on the account and the age of your child.

Do kids pay tax on bank interest?

It depends, on how old they are and how much they earn.

If your child is less than 16 years old, special rules apply to any interest they make from a savings account.

If your child is under 16 and:

• they earn less than $120 per year (or $10 per month) from savings accounts, their financial institution will not withhold tax.
• they earn between $120 and $420 in savings interest per year and they provide either their date of birth or a tax file number (TFN), the financial institution will not withhold tax.
• they earn between $120 and $420 in interest and don't provide their date of birth or TFN, the financial institution will withhold tax at 47%. They'll need to lodge a tax return if they want a refund.
• they earn $420 or more per year from savings accounts and provides their TFN, the financial institution will not withhold tax.
• they earn $420 or more per year and don't provide their TFN, the financial institution will withhold PAYG tax at 47%. Again, they'll need to lodge a tax return if they want a refund.

Once your child turns 16, as long as they provide their TFN, the financial institution will not withhold tax on any interest earned.

If your 16 or 17 year old doesn't provide their TFN, the financial institution will withhold PAYG tax at 47% and they need to lodge a tax return to get it refunded.

Need to know:

• If you have a joint account between an adult and a child aged under 16 years, the same rules apply as those for a 16 or 17 year old.
• Withholding tax is calculated on the total interest earned – not just the amount above the threshold of $420 or $120.

Frequently asked questions on children's savings accounts

• Can I deposit money into my child's bank account and take advantage of the tax-free threshold?

  No, according to the Australian Taxation Office (ATO), any income that you put into your kid's savings account needs to be declared in your individual tax return. This means that you'll be looking at the same marginal tax rate anyway.

• For children under the age of 12, do I need to open the account as a trust?

  You're not required to open the account as a trustee. You can add yourself as a signatory and then transfer it to the child later. If you are starting a trust for your child for estate planning purposes, you may want to speak to a financial planner about what trust structure is best for you.

• For children under the age of 16, does the child need a tax file number (TFN)?

  It is not required to have a TFN to open a kids savings account, though ensure the account is marked "Under 16 - TFN Exempt".

  In Australia, the law requires that these accounts hold money that solely belongs to a minor child. A parent may not use this type of account to save for school costs or other expenses related to raising children.

• Can I open an account for someone else's child?

  Most banks require you to be the child's parent or legal guardian in order to open an account for them. You will also need the child's birth certificate and a form of identification for yourself in order to open a bank account for the child.

• Do you have to pay tax on interest earned in a kid's savings account?

  If a savings account earns interest then this interest is usually taxed. This works a little differently for children.

  According to the ATO:

  • If a child's account earns less than $120 a year in interest, no tax is withheld.
  • If a child is under 16 and earns between $120 and $420 in interest in a year, the bank won't withhold tax if you provide their date of birth or a tax file number. If you don't provide either of these, then you can lodge a tax return to get the interest refunded
  • If a child earns more than $420 a year in interest they need to provide a tax file number to avoid having tax withheld, or lodge a tax return to get a refund.
  • If a child is 16-17 years old and earns more than $120 in interest a year, they need to provide a tax file number to avoid having tax withheld, or lodge a tax return to get a refund.

  You can apply for a tax file number for your child at any age.

• What is a kids transaction account?

  A kids transaction account is an everyday bank account designed for spending, not necessarily saving. It often comes with a linked debit card (or similar) to make purchases in stores or withdraw cash from ATMs. Usually you'll need to open a kids transaction account on behalf of your child while they're under 14.

• Can a grandparent open a bank account for a grandchild in Australia?

  Some banks specify that you must be either a parent or guardian to be able to open a bank account on behalf of your grandchild. It's a good idea to contact the bank to ask what its rules are for who can open an account for a child. If you can open an account for your grandchild, you'll usually need to visit the bank and provide identification for both you and your grandchild.

• Does ING have a child account?

  ING does not offer a savings account for children. They used to have the Orange Everyday Youth account, but stopped offering it to new customers in 2022. You need to be at least 18 to open an ING Savings Maximiser or Savings Accelerator.

• Can kids under 13 have a bank account?

  Yes, children under 13 can have a bank account in Australia with parental consent. Many banks offer savings accounts for this age group.

• How old do you have to be for an ING savings account?

  You need to be at least 18 years of age to open an ING savings account, making them unsuitable for children.

• Can you open an account for a child?

  Yes, parents or guardians can open a bank account for a child in Australia. Most banks require identification documents and parental consent.