Children’s bank accounts are designed specifically for teenagers and younger. They’re for parents who want to get their children started on saving early so that by the time they’re 18 they’ll have some savings of their own. Here's how to pick the right one for you and your kids.
There's no single bank account that's best for everyone, what's best for you might not be best for someone else. Take a look at some kids savings accounts in the table below and see if any are right for you.
The best Kids savings accounts will have the following features:
| Response | Female | Male |
|---|---|---|
| I do not have children | 36.55% | 32.52% |
| 1 - 2 | 13.62% | 10.71% |
| 5 - 7 | 11.72% | 11.28% |
| 8 - 10 | 6.38% | 11.47% |
| 14+ | 8.28% | 10.34% |
| My children are too young for a bank account | 6.55% | 8.46% |
| 0 | 8.28% | 3.38% |
| 3 - 4 | 3.97% | 6.77% |
| 11 - 13 | 4.66% | 5.08% |
This table shows the interest rates of a few of the best kids savings accounts and the conditions that apply for those rates.
| Product name | Maximum interest rate | Conditions that apply |
|---|---|---|
| Great Southern Bank Youth eSaver | 5.5% | Available on balances up to $5,000 |
| Commonwealth Bank Youthsaver | 5% p.a. | Maximum rate is paid if you make at least one deposit to the account and have no withdrawals during a calendar month. |
| MyState Bank Bonus Saver | 5% p.a. | Deposit at least $20 into the account each month and make five or more Visa Debit card transactions from your linked transaction account. |
| Illawarra Credit Union Wildlife Saver | 2.5% | Deposit $10 a month and make no withdrawals. |
| IMB Zoo Account | 4% | Deposit $10 a month and make no withdrawals. |
| Police Bank Dynamo Kids Savings Account | 2.05% | Deposit $20 a month |
When looking for the best kids savings account for your child, here's what to consider.
Childrens savings accounts typically have fewer fees and costs than other types of accounts, but some may still apply. If you’re not careful, you might end up losing a significant amount to fees in the long run, as well as more in lost interest. Most kids savings accounts have no fees.
Not all kids savings accounts have the same age retractions in place. Some accounts can be opened by children as young as 12, while others require you to be at least 14 or older.
Check what happens with the kids savings account when the child turns 18. Some accounts will remain open until you choose to close it, while others will automatically switch to the standard savings account product with that bank.
If your child needs to deposit a set amount into the account each month in order to earn interest, make sure it's not too high and is an achievable amount. Otherwise you could discourage them from saving.
Kids savings accounts usually have a balance limit that's a lot lower than adult savings accounts. Some kids accounts will only pay interest on balances up to $5000, for example, while others will pay interest on much larger amounts.
The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $50,000 and $250,000. Learn more about this high interest savings account.
The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $250,001 and $500,000. Learn more about this high interest savings account.
The Bankwest Easy Saver account offers a bonus rate for the first 4 months, then an ongoing standard variable rate with no conditions to meet.
Check out out review of the Bank of Queensland Simple Saver Account.
The Great Southern Bank Goal Saver Account has an ongoing bonus rate on balances up to $50,000 for customers aged 18-24.
Earn 2.30% p.a. on your savings each month you make at least one deposit and make no more than one withdrawal.
The Virgin Money Boost savings account (for 18-24 year olds) offers bonus interest each month you deposit money and meet the purchase requirements. Here's how the account works and how to apply.
The Virgin Money Boost savings account (for 25+ year olds) offers bonus interest each month you deposit money and meet the purchase requirements. Here's how the account works and how to apply.
Available to SMSFs, the Rabobank Notice Saver offers a high interest rate on your savings, but you’ll need to give at least one-month’s notice before you can withdraw your funds.
The ING Savings Maximiser is a high interest savings account with a competitive interest rate when you meet the account conditions. Here's how to earn the top bonus rate with this account.