Westpac offers a savings account just for young kids, where bonus interest is earned each month that savings goals are met. This is a fee free account that allows for easy deposits in a number of ways, making it simple to keep augmenting the savings. Special terms and conditions apply for the Kids Rewards Saver, yet it is worth taking a closer look at if you want to start building now for your child’s financial future.
What are the features of the Westpac Kids Rewards Saver?
The Kids Rewards Saver Account is designed to encourage kids to save through a number of different features. Compare those features with other Australian banks’ savings accounts for children to find the one that is going to give you and your child the biggest financial reward:
- Availability. The Kids Rewards Saver is only meant for Australians under the age of 12.
- Monthly service fee. You are not charged any monthly service fees for this account.
- Interest rate. The base rate for the Kids Rewards Saver is a nominal and variable interest rate.
- Bonus interest. You can boost your interest earnings with a variable bonus interest rate that is competitive in the market. This is done by making at least one deposit of any amount every month, but no withdrawals. You must maintain a credit balance.
- Interest payments. Interest is calculated daily and the payment will be deposited into the account the following month. The balance, and any deposits made, on the last day of the month will be included in the following months calculation.
- Deposits. Anyone is able to deposit money into this account, either at a Westpac Branch or by making a transfer through online banking. With a transfer you will need to provide the BSB and account number of the originating account.
- Withdrawals. You are allowed to make withdrawals from the account at a branch, but unless that withdrawal is being used to make a deposit into a Westpac term deposit, it will cause you to lose your bonus interest for that month. All withdrawals are subject to approval by the authorised signatory, which should be the same individual who completed the account opening form.
- Earn bonus interest for each month you deposit and don't withdraw
- $0 monthly fee
- Free withdrawals
How do I apply for the Westpac Kids Rewards Saver?
You will need to visit a Westpac Branch in order to open the Westpac Kids Rewards Saver. This specialty account has eligibility requirements that you must be able to meet before the account can be activated:
- Minimum age. The account will be opened in the name of a child under the age of 12, but an adult over the age of 18 must be available to sign the account opening form.
- Residency requirements. The Kids Rewards Saver can only be opened by Australian residents who possess an Australian residential address.
- Depository requirements. There is no minimum opening balance requirement for the Kids Rewards Saver Account.
If you do qualify for this account you will need to bring with you the following documentation when visiting a branch in order to be able to complete the application in full:
- Tax file number. Interest earnings over a certain amount can still be subjected to withholding tax if you do not provide your tax file number (TFN) or TFN exemption code.
- Identification. The parent or guardian opening the Kids Rewards Saver will need to show photo identification such as a driver’s licence, passport, or Medicare card. For the child account holder you should bring with you a copy of their Australian birth certificate.
With the application completed, and account activated, you can begin to make regular deposits into the account. Once the account holder reaches 12 years of age, the account can be modified to include their signature and a Handy Card to make withdrawals easier can be requested.