How to open kids and youth high interest savings accounts

Signing your kids up to a high interest savings account can be a great way of getting them started on their saving journey. Not only do they get a good idea about how to manage their money but they also discover the rewards from a high interest rate savings account

With savings accounts, children can learn about getting their cash to work for them through interest, the importance of regular saving, and the impact of compound interest over time. Some accounts come with educational resources or interactive tools.

What savings accounts are available for kids & youth?

The line between youth and standard savings accounts can be a bit difficult to find, with some accounts requiring age limits as high as 25 for a youth account. Accounts intended specifically for kids are usually meant to encourage an early habit of saving as well as giving them hands-on experience early on.

What features should a kid's high interest savings account have?

Just as comparing your own savings account options, considering the features your kid's high interest savings account might have is important. Since most savings accounts nowadays tend to be accessed through smartphone apps, providers have been adding more handy features. 

Some of the features you may want to consider include:

Budgeting tools

Budgeting tools can take a lot of different forms, from actual budgets in-app to features that help inform spending habits. These usually come with a transaction account, but a lot of other providers usually bundle these together with their savings accounts.

Easy high interest rate

Getting the highest interest rate possible isn’t always practical for some savers. This is because a lot of high interest rate accounts tend to be bonus rates, meaning that you need to fulfil regular conditions in order to get the required rate. So make sure the account has conditions that are easy to meet or a decent base rate savings account. 

Good age range

Some youth savings accounts have age ranges that extend beyond 18+, so they can be a good way of setting your child up with an account that’ll stick with them for a while. 

What should parents consider before opening a high interest savings account?

If you’re looking to get your child started with a new savings account soon, be sure to consider some of the following steps:

First thing - opening an account

Opening a high interest savings account for your child is pretty straightforward, although it does require some preparation. Usually, you'll need identification for both you and your child, such as birth certificates or passports. It's a good opportunity to involve your child in the process, teaching them about the importance of financial documentation and security.

Tax implications 

There are some tax implications you might want to keep in mind before opening a child's savings account. In Australia, interest earned on children's savings accounts can be subject to tax. 

The Australian Taxation Office (ATO) outlines some tax conditions for kids savings accounts when your child is under the age of 16. 

Access and control

You may want to consider how much access and control you want your child to have over their account. Some savings accounts offer joint access, while others are solely in the child's name. Generally speaking though, parents will tend to act as the trustee of the account.

If you’re ready to go, then check out our kids savings account hub page or our high interest savings account page. Alternatively you can check out some savings account providers in the table below… 

Savings account comparisons on Mozo - last updated 15 April 2024

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  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

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  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

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  • MoneyMAX Account

    No Current Offer

    4.75% p.a.(for $1 and over)

    Yes up to $250,000

    Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.

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^See information about the Mozo Experts Choice Savings Account Awards

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