types of kids ba

What types of kids bank accounts are available?

From bonus interest to low fees, kids bank accounts come with a variety of features to help grow your child's savings.

There are many bank accounts that you can choose to open for your child. Some pay a flat rate of interest and come with a debit card, while others work best when linked to a high interest savings account. If you’re stuck wondering which is the right one for your young one, have a read of this page to help you decide.

AMP Saver Account

AMP Saver Account

2.55 % p.a.

max rate

2.10 % p.a.

standard variable rate

AMP Saver Account

Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 2.10% p.a. Available on balances below $5,000,000.

  • Maximum Rate: 2.55% p.a.
  • Standard Variable Rate: 2.10% p.a.
  • Introductory period: 4 months
  • Monthly fees: $0.00
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Rates last updated November 13th, 2018
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
AMP Saver Account
Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 2.10% p.a. with no withdrawal or deposit conditions. Available on balances below $5,000,000. This account can be opened on behalf of kids under the age of 18 by a parent or guardian. T&Cs apply.
MyState Bank Bonus Saver Account
Ongoing, variable 2.60% p.a. for kids aged 13 or over, when they deposit at least $20 into the account each month and make five or more Visa Debit card transactions from their linked MyState transaction account.
BCU Scoot's Super Saver
Ongoing, variable 3.50% p.a. when you deposit $20+ each month and make no more than $5 in withdrawals within the same month.
Available on the entire balance.
People's Choice Young Saver Account
Ongoing, variable 2.55% p.a. when you deposit $5+ each month and make no withdrawals within the calendar month. Available on the entire balance.
Suncorp Kids Savings Account
Ongoing, variable 2.60% p.a. when you deposit $20+ and make only one withdrawal each month. Available on balances more than $0.01.

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What type of bank account can I open for my child?

Bank accounts that pay bonus interest

Your child is rewarded with bonus interest when they meet conditions such as making no withdrawals and at least one deposit every month.

Featured bank accounts with bonus interest
Bank accountVariable bonus interest rateConditions for earning bonus interest rate
Commonwealth Bank Youthsaver Account2.30% p.a.Make at least one deposit to the account and have no withdrawals during the calendar month.
People’s Choice Young Saver Account2.55% p.a.Deposit at least $5 and make no withdrawals during the calendar month.
Suncorp Kids Saving Account2.60% p.a.Deposit at least $20 and make no more than one withdrawal during the calendar month.
Bankwest Kids’ Bonus Saver4.75% p.a.Deposit between $25 - $250 and make no withdrawals. Child must also have a linked Bankwest Children's Saving Account in his or her name.

The pros

  • Bonus interest. Bonus interest is the main attraction of this type of kids bank account. You can make contributions to your child’s bonus interest savings account on their behalf; however, any interest earnings will need to be included on your tax return at the end of the financial year.
  • Age requirements. You can open these bank accounts for a child of any age.
  • Mostly fee-free. These accounts cost nothing to own; however, select financial institutions charge a fee for direct debit transactions.

The cons

  • Linked accounts. In some instances, these accounts must be linked to a transaction account.
  • No debit card. There is no debit card access. The scope of this type of account is limited; bonus interest children’s savings accounts work well when saving for a goal or a rainy day, but not for day-to-day transactions.
  • Limited access. Some savings accounts from select financial institutions offer online and telephone access only.

Bank accounts with a debit card

These bank accounts for kids work in much the same way as a regular no-fee bank account.

Featured bank accounts with a debit card
Bank accountVariable interest rate (if applicable)
Westpac Choice for Under 21s – for people 12 years and older2.25%
Bendigo Bank Student Account0.50%
CUA Everyday Youth AccountN/A
Commonwealth Bank Smart Access AccountN/A

The pros

  • Learn about card payments. Teach your child about making card payments from an early age with a bank account for kids with a debit card.
  • No monthly fees. There are no monthly account keeping fees.
  • Learn about everyday banking. Your child will get the full personal banking experience and can learn about using personal finance products before they turn 18.
  • Interest payments. Compare kids bank accounts with a debit card to find a product that also pays interest.

The cons

  • Age requirements. Your child must be over a certain age (usually 12 or 13) to be eligible to receive a debit card.
  • No bonus interest. Some of these accounts will pay a flat rate of interest; however, there are few, if any, products that operate on a bonus interest structure.
  • Other fees. Using the debit card to shop overseas will incur a currency conversion fee and ATM fees also apply when the card is used at non-partner ATMs.

Kids savings accounts

Kids savings accounts pay a flat rate of interest and feature online, telephone and branch account access.

Featured savings accounts
Bank AccountVariable interest rate
Bendigo Bank PiggySaver Account1.25%
P&N Way Cool Saver1.75%

The pros

  • No fees. These savings accounts are fee-free.
  • Low age requirements. These accounts are available to children under the age of 10 as well as teenagers.
  • Interest bearing. These accounts have a flat rate of interest. Even if withdrawals are made, funds accrue interest.

The cons

  • No bonus interest. These accounts pay a flat rate of interest regardless of whether withdrawals are made or not. This can be a pro or a con depending on how the account is used.
  • No debit card. A debit card is not issued with these kids savings accounts. Funds are accessed online, over the phone or in a branch.

There are many different types of kids bank accounts available to open. Make sure you spend time reading about these different types of accounts so you open the right one for your child.

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Jacob Joseph

Jacob is a writer and video journalist with finder.com.au. Credit cards, personal loans and savings accounts are his bread and butter, and he likes nothing more helping people understand the sometimes overly complex world of personal finance.

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