We compared all kids savings accounts in our database to identify the savings account with the best unconditional interest rate for children 8 years and over. Criteria for the award also included: no monthly service fee, unlimited free internet transactions, no notice period for withdrawals, no automatic sweep function and to be able to link to accounts at any institution.
Best Value Kids Savings Account - Ongoing Bonus Rate
If kids can make regular deposits, a savings account with an ongoing bonus rate could be the best interest earner. Mozo reviewed all kids bonus rate savings accounts in our database and here is the list of winners for 2016. For full awards criteria see here.
Mozo considered at call savings accounts, transaction focused bank accounts, and fixed term deposits. Awards have been awarded for each of these product types.
Mozo has been researching and comparing financial products since 2008, and hundreds of thousands of Australians use our comparison services each month. Our research team is headed by our Research & Insights Director and our Product Data Manager who have over 50 years of financial services experience and 21 years in online financial comparison.
More information on the methodology and deposit awards criteria can be found here.
Best savings tips for kids
Now that Mozo’s money experts have helped you decide which children’s savings accounts to open, it’s time to get those kids saving that pocket, christmas and birthday money. Here are some top tips for helping them reach their savings goals and learn about managing money.
Set up spend and save buckets. This will help kids learn the basics of budgeting and keep them motivated to save. Each pocket money day help them to split their money into savings and spending amounts. It could be a 50/50 split or any percentage that you and your child decides. The key is that kids (like adults) need some fun money to stay savings motivated or they are likely to give up pretty quickly.
Set long term and short term savings goals. Maybe your child wants a new Star Wars Lego set and a skateboard. Help them to price out each item and work out how much they need to save each week to reach their savings goal. Make a chart so that they can track their progress and feel they are in charge of their finances.
Teach them to save first, not last. Get your children into the habit of instantly putting money into their kids savings accountevery pocket-money day. Don’t wait til the end of the week as this is often when you realise you no longer have any money left to save.
Keep a spending diary. Suggest to your kids they keep track of everything they spend their money on. This will enable them to see where their money goes and whether they can change some of their habits to save for things more important to them. It also comes in handy later in the year to show them just how much their saving motivation helped them achieve.
Shop smart. When it comes to withdrawing money from your kids savings account to purchase the new bike or XBox game teach your kids to shop around for the best deal. Look for sales and online coupons that will help them to fine tune the savvy skills of getting the best value for their dollar.