Here at Mozo we’re particularly passionate about helping Australians get a better banking deal and what better Aussies to help get off on the right savings foot than our littlies? We’ve just added a new kids savings account section to the Mozo site to help young savers, their parents and grandparents, find the best kids savings account to watch the pocket money grow.
Alarmingly, it seems that many of Australia’s banks aren’t all that interested in kids money or at least in kids saving. Of the 27 kids accounts in our database none of the children’s bank accounts pay more than 3% interest without conditions attached. Compare that with regular adult savings accounts and you could be earning 4.95% with the Rams Saver, no monthly conditions attached.
Now, as a parent, I’m all for teaching kids the value of saving but with several of the children’s saving accounts my kids wouldn’t even be able to make the minimum monthly deposit requirements without a visit from the tooth fairy or a birthday score. For instance, to get the 8.01% interest of the BankWest Kids Bonus Saver they’d have to deposit at least $25 in the month. They get $5.00 each per week pocket money so the weekly treat of bag of mixed lollies at the local shop would have to go if they wanted to get any interest at all.
The good news is that of the children’s savings accounts in the market, it’s the Big Banks that offer some of the best bank accounts for kids. Among the Big Four Banks, Westpac tops the kids interest stakes with its Kids Reward Saver and Kids Youth Saver Accounts at 5.35% (as long as you make a deposit don’t make any withdrawals), followed by ANZ Kids Progress Saver (5.26%), Commonwealth Bank Youthsaver (4.26%) and NAB Smart Junior Saver (4.10%).
The Suncorp Kids Savings Accountis the only savings account that will allow one withdrawal per month without the bonus interest being affected, but it does have a combined deposits minimum of $20 per month.
Come on banks. Don’t you think it’s time you stopped kidding around in bankland and started offering Aussie kids a genuine deal on their savings?