Savings for children - the Mozo guide

Bringing up a savings-savvy kid could save you a fortune in averted financial delinquency later on, so it pays to get them excited about saving and informed about making sure their cash is sitting in a kids savings account with one of the higher interest rates around.

Children's bank account features

The key kid features you'll want to look for include:

  • No fees:  Most children's bank accounts don't have monthly or maintenance fees, which might otherwise eat a hole in their pocket money.
  • Bonus interest rate: Many savings accounts for children offer high interest deals, typically with a couple of conditions such as: Minimum monthly contribution No withdrawals. It’s important to make sure you are fully aware of all these conditions before opening the account so that it suits both you and your child.
  • No maximum monthly deposit: Often, higher-interest children's savings accounts will impose a maximum deposit (eg, $250); so if you may be making irregular (and large) contributions look for flexibility here.
  • Child-friendly facilities:  From statements and online graphs to show how much they're saving to special tools such as the Commonwealth Bank's 2019 Mozo Expert Choice Award winning Youth App.
  • Various access options may only apply from the age of 12: Online or phone banking withdrawals EFTPOS & ATM Direct debit facility

If you need a little extra guidance on how and where to get these features from the best providers check out our 2019 Mozo Experts Choice Kids Savings Account Awards.

How to find the right children's account

There are several different types of high interest accounts for kids, with different types of bank traps you’ll want to sidestep if your children are going to save up faster (and, yes, support themselves sooner).

RELATED: Australia’s Best Savings Accounts for 2019 Unveiled 

So, here are some simple things to keep in mind in order to give your child the best saving potential.

  • Regular deposits: while it is always tempting to take out a high-interest savings account, when it comes to children sometimes the minimum monthly payment may be unachievable. Be realistic with both yourself and your child’s savings ability, and make sure that you are regularly depositing funds or setting up an automated deposit to get full benefit from your selected kids savings account.
  • Different options: In some cases choosing a regular savings account for your child over a specific kids savings account could be the better option to get a higher interest rate. Be mindful though as usually this account would have to be held in your name rather than your child’s so any interest earned is included in your taxable income.
  • Interest Rates: Rates can change for kids savings account, like they would for a regular savings account. Every year have a look at what interest rate your child receives and compare it to other similar accounts to see which has the best deal - if you need to make a change, make it!

4 ways to help your kids save money

Sometimes it can be hard for parents to teach their children about the importance of saving and how to create money conscious spending habits.

RELATED:  Savings for children - tips and tricks

But there are some tricks to keeping your little one in the loop with their savings and helping them develop their financial knowledge from simple piggy banking to real big kid banking.

1. Let your child manage as much of their money as possible: If a child feels like they are in charge then it’s more likely they are going to take more away from the experience. If you give them pocket money in cash let them decide how much they want deposited in an account and how much they want to keep in a money jar. This way they can start to gage what percentage of their weekly earnings they actually need and help develop regular savings habits by making weekly, fortnightly or monthly deposits.

2. Help your kids set goals:  Goal-setting is a huge part of a child’s life whether it’s at school, on the footy field or with their savings. If there is something in particular they want, like a fresh set of roller blades or a blow up unicorn for the pool, lay out a framework where they are the ones saving for it. Show them that financial goals are achievable through putting money away regularly - their first purchase won’t be their last but it may be the motivator to get the ball rolling.

3. Lead by example and show them how saving is done: Many parents know that children will do and say exactly what they have heard or seen before, and saving is no different. Give them real-life examples of how saving works - whether it’s teaching them to choose low-cost items at the supermarket or explaining the varying costs of petrol at the servo, reinforce the importance of making saving-savvy decisions and eventually they’ll get the idea.

4. Allow your child to make mistakes: Making mistakes is the best way to learn, so if your child uses the entire contents of their money jar on the school canteen instead of depositing in an account that’s meant for a new guitar, let them realise where they went wrong and help them develop a plan to avoid the same event happening in the future. If having too much physical cash around is too tempting for them, discuss depositing a higher percentage of their earnings every week in their kids savings account.

Hop over to the Kids Savings Accounts hub for the tips and tricks of child bank accounts. Or leapfrog to the 2019 Mozo Expert’s Choice Kids Savings Accounts Awards to find the best children's savers in the financial playground.


Savings Account Comparison Table - last updated 31 July 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
    • Mozo Expert Choice Badge
      Bonus Saver Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.20% p.a. (for $0 to $250,000)
      0.10% p.a.(for $0 and over)
      Yes up to $250,000

      Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.

      Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.

      Details
    • Boost Saver with Go Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.20% p.a. (for $0 to $250,000)
      0.10% p.a.(for $0 and over)
      Yes up to $250,000

      Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

      Enjoy a savings account bundled with a spending account. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

      Details
    • Serious Saver
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      0.30% p.a. (for $0 to $1,000,000)
      0.15% p.a.(for $0 and over)
      Yes up to $250,000

      Bonus rate for first 3 months, reverting to 0.15% rate after

      $0 monthly account fee. Link to any Australian bank account.

      Details
    • Grow Saver
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      0.65% p.a. (for $0 and over)
      0.10% p.a.(for $0 and over)
      Yes up to $250,000

      Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

      Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

      Details
    • Online Saver
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.10% p.a. (for $0 to $500,000)
      0.35% p.a.(for $0 and over)
      Yes up to $250,000

      Bonus rate for the first 4 months from account opening

      No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.

      Details
    • WebSavings Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.00% p.a. (for $2,000 and over)
      0.05% p.a.(for $2,000 and over)
      Yes up to $250,000

      Bonus rate for the first 4 months from account opening on balances over $2,000 only, available to new customers only.

      A high interest savings account that still lets you access your cash, no monthly account keeping fees and top up as many times as you like.

      Details
    • Flexi Saver
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      0.25% p.a. (for $0 to $5,000,000)
      0.05% p.a.(for $0 to $5,000,000)
      Yes up to $250,000

      Increase balance by at least $300 in the month

      No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.

      Details
    • Fast Track Saver Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.05% p.a. (for $1 to $250,000)
      0.05% p.a.(for $1 and over)
      Yes up to $250,000

      Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

      Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.

      Details

^See information about the Mozo Experts Choice Savings Account Awards

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