Kids savings accounts

Good money habits begin at home and a high interest children’s savings account with low (or no) fees is a great way to teach your kids the value of money and help them off to a flying start.

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What impact can a high interest rate have on small starting amounts?

The impact of compound interest can be very powerful over time! Putting just $5 a week into a children’s savings account earning 6% interest for 18 years would reach a total of $8,543 and earn a total of $3,751 in interest.

Try our savings calculator and see for yourself how a kids bank account could help your kids off to a great start.

How else can I teach my kids good money habits?

Money habits are learned at home and that means the good and the bad. Talk openly with your kids about money, offer them ways to earn pocket money by helping out around the house and encourage them to save for the things that they want by setting up a kids savings account . The result - you won’t have to reach into your pocket every five minutes for the latest toy and your children will learn the value of earning and saving money - and that there isn’t just a limitless supply! You could find their rooms are a little tidier too.

Can I apply online for a kids savings account?

You sure can! After you have compared all the kids savings accounts and found the best savings account for your child’s needs, just click through on the blue ’go to site’ button next the kids savings account of your choice.

Kids savings account comparisons on Mozo - page last updated August 16, 2020

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.

  • 0.85% p.a. (for $0 and over)

    0.01% p.a.(for $0 and over)

    Yesup to $250,000

    Under 18

    Bonus interest when you make a single deposit of $10 or more in a month and no withdrawals

      Compare
    Details
  • No Current Offer

    1.90% p.a.(for $0 to $50,000)

    Yesup to $250,000

    Up to 13

      Compare
    Details
  • 2.00% p.a. (for $0 and over)

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

    Yesup to $250,000

    Under 25

    Increase account balance by $10 and no more than two withdrawals

      Compare
    Details
  • 1.65% p.a. (for $0 and over)

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

    Yesup to $250,000

    Under 18

    Minimum deposit of $10 and no withdrawals in the month

      Compare
    Details
  • 1.65% p.a. (for $0 and over)

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

    Yesup to $250,000

    Under 18

    Minimum deposit of $10 and no withdrawals in the month

      Compare
    Details
  • 2.01% p.a. (for $0 and over)

    0.01% p.a.(for $0 and over)

    Yesup to $250,000

    Under 12

    Minimum one deposit and no withdrawals in the month

      Compare
    Details
  • No Current Offer

    1.00% p.a.(for $2,000 and over)

    Yesup to $250,000

    Under 18

      Compare
    Details
  • No Current Offer

    1.75% p.a.(for $0 to $5,001)

    Yesup to $250,000

    12 to 17 years

      Compare
    Details

^See information about the Mozo Experts Choice Savings accounts Awards

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Savings account resources

Reviews, news, tips and guides to help find the best savings account for you.

Comparing children's savings accounts, the Mozo guide

If your child is past the stage of the good old piggy bank, a kids savings account offers the perfect opportunity to graduate them to the world of banking. You can encourage them to deposit part of their pocket money to the account every month and introduce them to the benefits of saving for the future.

Most major banks, credit unions and building societies in Australia have accounts specifically designed for children, and luckily you don't need to search every site to compare them. We've done this for you. Mozo's database contains all the best kids accounts so you can find one that's right for your child.

But before you head over to our search tool to start your search, there are a few kids bank account must-knows which we've outlined below.

Generally kids accounts are available for children under the age of 18 years, though there are some youth accounts that go up to 25 years. Parents or guardians usually have full control over their kid's account until the child turns 16 years of age.

How do I keep on top of interest rates?

One way to encourage your child to save is to make sure they’re getting the best possible returns on their savings. To that end, it pays to keep track of where interest rates currently sit and if they’re due to change in the future. Visit our savings account interest rates page for more information.

The features you should look for in a kids savings account

  • No fees: One of the key advantages of opening a kids savings account is that most banks don't charge a monthly account fee for children.
  • Bonus interest rate: Children's savings accounts generally offer bonus interest rates to encourage little ones to save, but compare carefully as not all kids accounts are competitive. Some banks actually offer lower bonus rates on kids accounts than on their standard savings accounts.
  • Non restrictive conditions: The best kids savings accounts pay competitive ongoing interest rates without the restrictive conditions, but unfortunately many banks require kids to meet monthly deposit or withdrawal conditions to earn bonus interest. It's important to read the fine print to decide whether the account will actually suit your child's savings habits.
  • Kid-friendly features: Many bank websites have online graphs or other fun tools and games to involve kids in understanding how much they are saving over time.
  • Easy access: It's a good idea to check if the account offers facilities such as online banking, phone banking and ATM access. This will make it easier for you to conveniently manage the account and introduce your child to the idea of secure Internet banking. Amongst other things, you can teach them the importance of not giving their PINs and passwords to anyone.

Children's account tips and traps to watch  

  • Automate savings: It can be tempting to go for the highest bonus rate offer but be sure that your child will be able to meet the account conditions each month as many kids savings accounts pay minimal interest if conditions are not met. The best way to ensure you'll always get the rate is to set up an automatic deposit on pocketmoney day.
  • Long-term goals: If this is all about teaching your child the benefits of long-term savings. If your child can't make regular deposits look for an account that has a good ongoing rate.
  • Watch for account sweeping: Account sweeping is when you get a high rate for a set period (say a year) and after this period the balance gets swept into a lower earning interest account. You then rebuild the balance in the high interest account. These accounts can be worthwhile to get the highest interest but you'd need to be diligent about moving your money out of the low interest account as soon as possible.
  • Consider a regular savings account: Often regular savings accounts have better rates than kids accounts so this can be a good way to get a higher rate of interest. The only downside to this is that generally you'll have to put the account in your name and not your child's, so you'll have to include the interest earned as part of your taxable income.
  • Don't just set and forget: Just like regular savings accounts, rates on children's accounts can change. You should compare interest rates annually to make sure your kids are still getting the best savings account deal with Mozo's handy comparison tool.
Picture of Kelly Emmerton
Kelly Emmerton
Money editor

Kelly Emmerton was the Money Editor at Mozo until March 2020. With over 4 years experience writing exclusively in the Australian finance space her in-depth knowledge spans all areas of personal finance, from home loans to travel money. Kelly has a background in communications and when she’s not delving into finance industry stats and product disclosure statements, you’ll find her on the beach reading classic sci-fi.

More FAQs about Kids Savings Accounts

Can I open a child's account online?

Most children's bank accounts will need to be opened by a parent, guardian or adult signatory, even though the account is for a child. You'll be able to open the bank account online but in some instances you may still need to visit a branch to verify identification details. 

Will I need a tax file number to open a kids account?

No, you don't need a tax file number but if your child earns more than $416 in interest and a tax file number isn't supplied they will withhold PAYG tax at a high rate. You can apply for a tax file number for a child of any age via the ATO. 

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