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Best children’s savings accounts

Here's what to look for in a savings account for your kids, and how to find the best one for you.

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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.

Find the best children's savings account

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.

Children's savings account offer
Children's savings account offer
1.60 % p.a.
max rate
0.05 % p.a.
standard variable rate
  • Maximum rate: 1.6% p.a.
  • Standard variable rate: 0.05% p.a.
  • Monthly fees: $0

MyState Bank Bonus Saver Account

Ongoing, variable 1.6% 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.
1 - 2 of 2
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Intro Period Government Guarantee Monthly Max Rate Conditions
MyState Bank Bonus Saver Account
MyState Bank Bonus Saver Account
  • Deposit $20
  • 5 debit card purchases
Deposit $20, 5 debit card purchases.
Virgin Money Grow Saver
Virgin Money Grow Saver
  • No more than 1 deposit
  • 32 days' notice for withdrawals (Lock Saver)
No more than 1 deposit , 32 days' notice for withdrawals (Lock Saver) .

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The best kids savings account looks like this:

The best Kids savings accounts will have the following features:

  • No account-keeping or ongoing fees
  • Good interest rate
  • Monthly deposit conditions that are motivating but not too challenging
  • Compound interest
  • Free and easy deposits
  • An app or Internet banking portal to track your savings progress

Kids savings interest rates compared

This table shows the interest rates of a few of the best kids savings accounts and the conditions that apply for those rates.

Product nameMaximum interest rateConditions that apply
Great Southern Bank Youth eSaver3.25%Available on balances up to $5,000
Commonwealth Bank Youthsaver0.95% 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 1.6% 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 Saver1.7%Deposit $10 a month and make no withdrawals.
IMB Zoo Account1.3%Deposit $10 a month and make no withdrawals.
Police Bank Dynamo Kids Savings Account1.7%Deposit $20 a month

How to find the best children's bank account

When looking for the best kids savings account for your child, here's what to consider.

Are there any fees?

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.

Is there an age limit?

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.

What happens when they turn 18?

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.

What are the monthly conditions?

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.

What's the balance limit?

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.

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