Term deposit accounts for kids

Which banks offer term deposits for kids?

Here are a few banks that do offer term deposits for people under 18.

6 of 14 results

Updated regularlyShare

Finder Score	3 Mths p.a.	6 Mths p.a.	10 Mths p.a.	12 Mths p.a.	24 Mths p.a.
Promoted Finder Score 8.9 Great Newcastle Permanent Term Deposit $1,000 min. deposit	Finder Score 8.9 Great	3 Mths p.a. 3.75%	6 Mths p.a. 4.15%	10 Mths p.a. 3.60%	12 Mths p.a. 4.00%	24 Mths p.a. 3.30%	Lock in a rate as high as 4.15% for 6 months with a minimum $1,000 deposit.	Go to siteMore info Compare product selection Compare	loading
Finder Score 8.5 Great Bankwest Term Deposit $1,000 min. deposit $10,000,000 max. deposit	Finder Score 8.5 Great	3 Mths p.a. 3.75%	6 Mths p.a. 3.80%	10 Mths p.a. 3.60%	12 Mths p.a. 3.70%	24 Mths p.a. 3.50%	ContinueMore info Compare product selection Compare	loading
Finder Score 9.8 Excellent Bank Australia Term Deposit Account $500 min. deposit	Finder Score 9.8 Excellent	3 Mths p.a. 4.15%	6 Mths p.a. 4.25%	10 Mths p.a. -	12 Mths p.a. 4.20%	24 Mths p.a. 3.80%	ContinueMore info Compare product selection Compare	loading
Finder Score 7.7 Great Westpac Term Deposit $5,000 min. deposit $2,000,000 max. deposit	Finder Score 7.7 Great	3 Mths p.a. 2.65%	6 Mths p.a. 2.90%	10 Mths p.a. 3.20%	12 Mths p.a. 3.55%	24 Mths p.a. 3.35%	Get 3.90% p.a. for 11 months (3.80% fixed rate special offer + 0.10% bonus when you sign up online). T&Cs apply.	ContinueMore info Compare product selection Compare	loading
Finder Score 7.7 Great ANZ Advance Notice Term Deposit (31 days notice required for early withdrawals) $5,000 min. deposit	Finder Score 7.7 Great	3 Mths p.a. 2.70%	6 Mths p.a. 2.95%	10 Mths p.a. 3.25%	12 Mths p.a. 3.65%	24 Mths p.a. 3.40%	ContinueMore info Compare product selection Compare	loading
Finder Score 9.9 Excellent Heartland Bank Term Deposit $25,000 min. deposit $1,000,000 max. deposit	Finder Score 9.9 Excellent	3 Mths p.a. 4.15%	6 Mths p.a. 4.40%	10 Mths p.a. -	12 Mths p.a. 4.45%	24 Mths p.a. 3.75%	ContinueMore info Compare product selection Compare	loading

loading

Load More

Showing 6 of 14 results

Compare other products

We currently don't have that product, but here are others to consider:

How we picked these

Finder Score for term deposits

Finder Score assigns Term Deposit products a score out of 10, comparing interest rates and features, to make comparison easier. We assess over 150 products from more than 90 providers, assessing products across different terms to determine an average score per product.

Read the full methodology

Open a term deposit for your child in your name

Because not many banks allow you to open a term deposit for someone under the age of 18, it might be easiest to open a term deposit in your own name. You can still reserve the money in the account for your child/children.

This will give you much more choice so you can find a better rate, and will require less admin to sort out too.

Why open a term deposit account for a child?

Here are the benefits of opening a term deposit account for your child.

• Guaranteed returns. When your invest money in a term deposit account, you'll know exactly how much the balance will grow by the time the deposit matures. A fixed interest rate and set investment term means guaranteed returns for your little one.
• Safe and secure. Deposits of up to $250,000 with Authorised Deposit-taking Institutions are covered by the Australian Government Guarantee, so there is no risk of your child losing their money.
• Stops them spending their savings. If you opens a regular savings account or bank account that provides easy access to the funds, you (or your child) may be tempted to dip into it on a regular basis. Locking the funds away in a term deposit ensures that they save their money rather than spend it.
• Learn about saving. A kid’s term deposit is a great way to teach your child about saving money and investing, and how they can build a bigger bank balance without having to lift a finger thanks to the power of interest.
• Save towards a goal. Whether your child has their heart set on a particular toy or a new mobile phone, a term deposit can help them save the money they need to afford their goal.
• No fees. Most term deposit accounts do not charge any ongoing fees, allowing your child’s balance to increase as quickly as possible.

How to compare kid’s term deposits

If you’d like to open a term deposit for your child, consider the following factors when comparing accounts:

Interest rate. This is the most crucial factor when comparing term deposits. Shop around for the account that offers the highest interest rate, remembering that rates vary depending on the term you choose.

Minimum age. If you want the account to be in your child's name, check the minimum age required to open an account.

Deposit requirements. Check the minimum and maximum deposit limits. For example, an account with a minimum deposit of $1,000 may be a much more reasonable choice for your child than an account with a $5,000 minimum.

Terms available. Terms can range from 1 month to 5 years, but not all terms are available from all banks. Look for accounts that offer the term you desire, and remember that interest rates depend on the term you choose.

Maturity. Make sure you and your child know what happens to the money in the account when the deposit matures. Will it be paid into the child’s transaction account, or will it be automatically rolled over into another term deposit?

Reaching 18. Check to see whether the account will be affected in any way by your child reaching 18 years of age. For example, will it have any influence on the interest rate?

I chose a savings account for my daughter

"When my daughter turned 1 my husband and I opened a savings account on her bahalf in our names. I chose to open a savings account rather than a term deposit because it allows us to make regular deposits into the account when she receives money for birthdays, holidays etc.

Term deposits don't allow ongoing, regular deposits into the account so they're better if you already have a lump sum you want to invest."

Alison Banney

Editorial Manager, Money

Frequently asked questions

• Can I open a term deposit for my child?

  Yes, you can open a term deposit for a child. The account will be in your name, or if the bank allows it, it can be in your child's name depending on their age.

• Do I pay tax on a kids term deposit?

  Yes, all accounts that earn interest are subject to tax. There are limits in place for interest earned in a child's name. According to the ATO, tax will be appliued if the interest earned is more than $420 per year.

• Can a minor open a term deposit?

  Some banks do allow children under 18 to open a term deposit in their own name, as opposed to in their parents name.

Written by

Tim Falk

Writer

Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio