7 top value kids savings accounts revealed

Kids eating lunch, happy with their savings accounts.

We all want the best for our kids, right? 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.

Having a great savings account in your corner is a core component of saving and budgeting. But how do you choose one that’s perfect for your child? With a little guidance from the data experts at Mozo, of course. 

They’ve recently crowned the winning savings accounts in our 2021 Mozo Experts Choice Savings Accounts Awards – including the ones for pint-sized savers. 

Check out some of the top winners here:

Set and forget: Kids savings accounts with unconditional rates

Motivating your kids to get out of bed in the morning can be difficult enough. So getting them pumped up about stashing their money away for a rainy day can seem downright impossible. 

Luckily, these options make saving easy, as you (and your kids) won’t have to do anything to earn interest except plonk their pocket money in the account.

BCU Scoots Super Saver

Interest rate: 1.50% p.a. (on balances up to $50,000)

Why it’s a winner:
By sticking their rainy day fund in this account, kids up to the age of 13 can really plump up their balance. 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 to earn a return on their savings pile and start managing their own budget.

Gateway Bank Dollaroo Savings

Interest rate: 1.50% p.a. 

Why it’s a winner: With no interest-earning conditions, no ATM withdrawal fees and unlimited branch deposits, little Dollaroos under 16 can save with ease using this account. There isn’t a set minimum balance to start earning interest or a cap, so this is a great option for kids at any saving stage. It’s also good for promoting long-term money goals, as interest is paid half-yearly instead of on the standard monthly schedule.

The Capricornian Youth Access Account

Interest rate: 1.50% p.a. (for balances up to $5,000, which reverts to 1.00% p.a. for every dollar over that amount) 

Why it’s a winner: With the top rate available to savers with less than a $5,000 pool of funds, this is a great kick-starter account for kids under 16 years old. There’s also easy access to the cash, with unlimited free transactions over phone, online and through in-branch deposits and withdrawals. If your kid does save a little extra over the years, they can still snag 1.00% on anything over the $5,000 cap.

Level up: Savings accounts for committed kids

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 trade-off 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.

Australian Unity Kids Saver Account

Interest rate: 2.00% p.a. (on balances up top $20,000 when you make a minimum $5 deposit and no withdrawals in the month)

Why it’s a winner: If your kiddo is a good organiser and can meet the conditions above, they’ll be earning a tidy 2.00% on top of their savings. Even if they slip up and forget to make a deposit or accidentally withdraw from the account, they can still earn a solid 1.00%. They’ll have access to these rates until they’re 14, alongside handy features like unlimited free transactions over the phone and internet, and free unlimited ATM withdrawals.

Auswide Bank Ziggy Kids Saver

Interest rate: 2.01% p.a. (when you make at least one deposit and no withdrawals in the month)

Why it’s a winner: With that one extra basis point, the Ziggy Kids Saver wins by a nose on interest rates in this category. Just remember, if you and your little saver don’t meet the bonus interest criteria in a month, this great rate will drop way down to 0.01%. Beyond rates, there’s unlimited free cash and cheque deposits and withdrawals at branches as well as online and over the phone, all of which kids can enjoy until they reach the age cap of 12.

Police Bank Dynamo Kids Savings Account

Interest rate: 1.70% (on balances $500 and above, 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 up to the age of 13 who are just 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 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.

Rugrats all grown up: Savings accounts for young adults

At some point, the little angel (or devil) you raised will spread their wings and leave the nest. Whether they move out of home at 18 or stick around for a few extra years, they should set out into adulthood with a great-value savings account.

The account below requires them to use the savings skills they learned at home to make the most out of their earnings as they leave their teens and take on their 20s.

Westpac Life (18-29)

Interest rate: 3.00% (on balances up to $30,000 for people aged 18-29, when at least one deposit is made each month to grow the balance, and at least five transactions are made per-month with a linked Westpac Choice debit card)

Why it’s a winner: This new offering from Westpac is designed to give young adults a leg-up on their savings journey with a market-leading 3.00% interest rate. While there are a few hoops to jump through when it comes to bonus interest-earning criteria, there’s big potential to grow your savings. And while you do need to increase your balance each month, there’s no minimum on this. So if you’ve had a few big splurge weeks and only have $1 to stash away, that won’t impact your interest earnings.

Head over to the Mozo Experts Choice Awards page to check out more savings account winners and find out how we conducted the awards. Or peruse more family savings options using our kids savings account comparison tool.