Kids savings accounts

Kids savings accounts are a great way to teach children about money and savings habits. For example, putting just $5 a week into a child’s savings account at 2.00% interest for 18 years would create a total of $5,651, with $955 in interest earned. The impact of compound interest can be very powerful over time, which is a great lesson for kids to learn from a young age. Start comparing kids savings accounts below.

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kids savings accounts

Kids savings account comparisons on Mozo - last updated 9 August 2022

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  • Ziggy Kids Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    1.26% p.a. (for $0 and over)
    0.01% p.a.(for $0 and over)
    Yes up to $250,000
    Under 15

    Minimum one deposit and no withdrawals in the month

    Compare
    Details
  • Scoots Super Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    No Current Offer
    1.50% p.a.(for $0 to $50,000)
    Yes up to $250,000
    Up to 13

    Compare
    Details
  • Mighty Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    1.00% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000
    Under 18

    Minimum deposit of $10 and no withdrawals in the month

    Compare
    Details
  • Mighty Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    1.00% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000
    Under 18

    Minimum deposit of $10 and no withdrawals in the month

    Compare
    Details
  • Progress Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    1.15% p.a. (for $0 and over)
    0.01% p.a.(for $0 and over)
    Yes up to $250,000
    Under 18

    Bonus interest when you make a single deposit of $10 or more in a month and no withdrawals, fees or charges are processed to the account.

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    Details
  • Young Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    No Current Offer
    1.00% p.a.(for $0 to $5,001)
    Yes up to $250,000
    12 to 17 years

    Compare
    Details
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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

If your child is past the stage of the good old piggy bank, they may be ready to graduate to a kids savings account. 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 and credit unions in Australia have children’s savings accounts, and Mozo's database compares these so you can find one that's right for your child, like one of these award-winning kids savings accounts.

But before you scroll back up to our search tool to start to compare children’s savings accounts, 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 30. 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.

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 bank accounts are competitive. Some banks actually offer lower bonus rates on kids accounts than on their standard savings accounts.

  • Non restrictive conditions: The best bank accounts for kids pay competitive ongoing interest rates without restrictive conditions. But unfortunately, many banks require kids to meet monthly deposit or withdrawal conditions to earn that 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 pocket money day.
  • Long-term goals: 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: Some 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.
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JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More FAQs about kids savings accounts

How do I find the best kids savings accounts in Australia?

While every child's needs will be different, you can start comparing some of top performing children's savings accounts in the Mozo Experts Choice Savings Account Awards. Here, you'll find some of the best no-strings saving accounts for kids that require now or very few actions to earn solid interest rates, as well as accounts that incentivise savings goals with even greater bonus rates when conditions are met.

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

What do I need to open a kids bank account??

Typically when opening a kids savings account you’ll need to provide proof of a home address, your child’s birth certificate and your ID. Requirements may different between banks and financial institutions, so be sure to double check online to see exactly what you need when searching for the best kids savings account

What age can a child have a bank account?

The specific age requirement to open a kids bank account depends on the terms and conditions of the account. Most banks allow parents to open kids savings accounts for children at birth, but there are also other accounts designed for kids from the age of 12-14 to manage on their own before turning 18.

What bank is best for children's accounts?

Figuring out what savings account is best for your children depends entirely on what you’re hoping to achieve with the account and what’s important to you.

For example, do you want to regularly put away an amount of money each month? Then an ongoing bonus account, like a pocket money regular saver might suit your needs. Are you looking to deposit a small amount into your kids savings account when you can? Well, you might consider a kids savings account with good base interest rates under a certain balance. 

No matter what feature you’re looking for, there are a lot of great kids savings account options available. You can get started by checking out the best kids savings or start comparing children savings accounts on our page.


Savings Account Reviews

Westpac eSaver
Overall 10/10
Great for low income/pensioners

I rate this highly because I’m a pensioner it gives a good rate per month. Great for low income

Read full review

I rate this highly because I’m a pensioner it gives a good rate per month. Great for low income

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Marilyn, New South Wales, reviewed about 23 hours ago
RACQ Bank Bonus Saver
Overall 5/10
Good Bank but badly worded bonus saver account .

The interest rates are very good , that is if you were aware that as soon as you have $100,000 in the account your savings will drop to 1.2 % for the entire amount instead of 1.9%. We were not informed this would happen when taking out 4 of these accounts. The wording is ambiguous, verified by a RACQ bank manager who was also not aware that you lost interest over $99,999 on the whole amount. He read it as we did, up to $99,999 you receive 1.90 % and the amount over drops to 1.2 % . And do not withdraw any or all during the month because your rate drops to 0.01% .

Read full review

The interest rates are very good , that is if you were aware that as soon as you have $100,000 in the account your savings will drop to 1.2 % for the entire amount instead of 1.9%. We were not informed this would happen when taking out 4 of these accounts. The wording is ambiguous, verified by a RACQ bank manager who was also not aware that you lost interest over $99,999 on the whole amount. He read it as we did, up to $99,999 you receive 1.90 % and the amount over drops to 1.2 % . And do not withdraw any or all during the month because your rate drops to 0.01% .

Price
10/10
Features
2/10
Customer service
4/10
Convenience
9/10
Trust
4/10
Less
Tony, Queensland, reviewed about 23 hours ago
MyState Bank Bonus Saver Account
Overall 10/10
Bonus saver AC is a winner

I have difficulty faulting the bonus saver Ac. Very competitive rate, Very good, professional service, both through the ap which is a delight to use and over the phone where they do not leave you waiting but ring you back. The requirements for the higher rate are not onerous and EFTPOS qualifies among many other transactions. This is particularly useful with retailers like Aldi who charge a fee for pay wave but not for EFTPOS. The app even urges you to meet the higher interest conditions towards the end of the month because there is still time. At 73 I have been with many banks but this is by far the best.

Read full review

I have difficulty faulting the bonus saver Ac. Very competitive rate, Very good, professional service, both through the ap which is a delight to use and over the phone where they do not leave you waiting but ring you back. The requirements for the higher rate are not onerous and EFTPOS qualifies among many other transactions. This is particularly useful with retailers like Aldi who charge a fee for pay wave but not for EFTPOS. The app even urges you to meet the higher interest conditions towards the end of the month because there is still time. At 73 I have been with many banks but this is by far the best.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Bob, Queensland, reviewed 7 days ago

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