We all want the best for our kids, right? Well, one of the most useful things you can do for your children is to set them up for a financially secure future by teaching them the ins and outs of saving money.
And as we all know, a core component of saving and budgeting for the future is having a great savings account on board. But how do you choose one that’s perfect for your kid?
It's easier than you think thanks to the experts at Mozo, who have recently awarded the top savings accounts in the market in our 2019 Mozo Experts Choice Deposit Awards - including the ones for little savers. Check out some of the top winners here:
Motivating your kids to get out of bed in the morning can be difficult enough - trying to get them pumped up about putting their money away for a rainy day can seem downright impossible!
These options make saving easy - you (and your kids) won’t have to do anything to earn interest except plonk their allowance in the account.
Interest rate: 1.85%
Why it’s a winner: This is one of the highest kids interest rates on offer for tiny savers and comes free of any bonus requirements, so their stash will grow as quickly as they do. There are also no fees, free online and in branch deposits, plus an Eftpos or Visa debit card so older kids can learn to use an ATM.
Interest rate: 1.80%
Why it’s a winner: With a bumper ongoing interest rate on offer, your kids will see their savings growing in no time with this account. Aside from that, it’s also got no monthly fee, unlimited free transactions over the phone and online, as well as access to the rediATM network with a Eftpos or debit card. What more could a new saver want?
Interest rate: 4.00% (for balances under $5,000)
Why it’s a winner: This 2019 Mozo Experts Choice Award winner rewards teens with a stellar 4.00% interest rate, and the best part is there are no hoops they have to jump through to get it. As long as their balance is under $5,000, they’ll immediately qualify. Plus, with no monthly fees and unlimited free internet transactions via phone and internet, it’s an easy to manage option for young savers.
These accounts are perfect for kids who are ready to step up their savings game and start working on a healthy piggy bank balance. They come with higher interest rates attached, but the tradeoff is that sprogs will need to meet certain requirements to score it.
One of these accounts might be suitable for slightly older kids who understand the value of saving, want to really see their pocket money grow and are willing to work for it.
Interest rate: 3.50% (with a minimum deposit of $20 and no more than $5 withdrawn in the month)
Why it’s a winner: By sticking their rainy day fund in this account, kids can really plump up their balance - but there’s also the option to withdraw up to $5 without losing that bonus interest rate. It comes with unlimited free phone and internet transactions, unlimited free ATM withdrawals, 6 free branch transactions, and 5 free EFTPOS transactions. All that adds up to make it a great account for disciplined savers who are ready not only to earn a return on their savings pile, but also start managing their own budget.
Interest rate: 3.25% (with one deposit and no withdrawals in the month)
Why it’s a winner: The great thing about this account is the extra flexibility in its bonus interest conditions - kids need to make a deposit each month, but there’s no dollar amount to hit. So it’s great for savers who are only just being introduced to meeting bonus requirements, and might be putting away small amounts each month. There’s also no monthly fee, an Eftpos or debit card on offer and free internet, over the counter or phone transactions.
Interest rate: 3.00% (with a minimum deposit of $20 and no withdrawals in the month)
Why it’s a winner: With a healthy interest rate on offer, this is a great option for young savers who are getting the hang of being proactive about their money. It’s a great motivator, since they’ll only snag the extra interest by depositing regularly and not taking any of their funds back out. There’s also no monthly fees and free internet and phone transactions, but keep in mind that fees will apply if you want to take your kids into the branch to do their banking.
Interest rate: 3.00% (as long as your balance grows each month)
Why it’s a winner: For under 25s who need some motivation to stay on top of their finances, the Greater Bank Life Saver is well worth a look. With its 3.00% bonus interest rate, available as long as your balance increases each month, it’s a great way to ensure kids and young adults get serious about saving. Plus, since there’s no set minimum deposit amount for scoring the extra interest, it’s easy to work out a regular savings plan - even if it’s only $5 each month.
So there you have it! Head over to our Mozo Experts Choice Award section to check out the rest of the kids savings account winners and find out how we conducted the awards. Or if you’d like to peruse the rest of the kids savings account market, take our search tool for a whirl. Just remember to filter the results to see only kids accounts before you start.