Best children’s savings accounts

The best kids savings account looks like this:

The best kids savings accounts will have the following features:

• No account-keeping or ongoing fees
• Good interest rate
• Monthly deposit conditions that are motivating but not too challenging
• Compound interest
• Free and easy deposits
• An app or Internet banking portal to track your savings progress

Kids savings interest rates compared

This table shows the interest rates of a few of the best kids savings accounts and the conditions that apply for those rates.

Finder survey: At what age do Australians open their first bank account for their child?

How to find the best children's bank account

When looking for the best kids savings account for your child, here's what to consider.

Are there any fees?

Childrens savings accounts typically have fewer fees and costs than other types of accounts, but some may still apply. If you’re not careful, you might end up losing a significant amount to fees in the long run, as well as more in lost interest. Most kids savings accounts have no fees.

Is there an age limit?

Not all kids savings accounts have the same age retractions in place. Some accounts can be opened by children as young as 12, while others require you to be at least 14 or older.

What happens when they turn 18?

Check what happens with the kids savings account when the child turns 18. Some accounts will remain open until you choose to close it, while others will automatically switch to the standard savings account product with that bank.

What are the monthly conditions?

If your child needs to deposit a set amount into the account each month in order to earn interest, make sure it's not too high and is an achievable amount. Otherwise you could discourage them from saving.

What's the balance limit?

Kids savings accounts usually have a balance limit that's a lot lower than adult savings accounts. Some kids accounts will only pay interest on balances up to $5000, for example, while others will pay interest on much larger amounts.

"I check my bank account at the end of each month using the app on my phone to see how much bonus interest I've earned. Usually it's not much! But it's fun to keep track of it. I bank with ANZ and I like that I have a savings account to save up for things like concert tickets, plus an everyday account that I can add to my Apple Pay."

Lila Megginson

14-year-old Gold Coast student

Do kids pay tax on bank interest?

It depends, on how old they are and how much they earn.

If your child is less than 16 years old, special rules apply to any interest they make from a savings account.

If your child is under 16 and:

• they earn less than $120 per year (or $10 per month) from savings accounts, their financial institution will not withhold tax.
• they earn between $120 and $420 in savings interest per year and they provide either their date of birth or a tax file number (TFN), the financial institution will not withhold tax.
• they earn between $120 and $420 in interest and don't provide their date of birth or TFN, the financial institution will withhold tax at 47%. They'll need to lodge a tax return if they want a refund.
• they earn $420 or more per year from savings accounts and provides their TFN, the financial institution will not withhold tax.
• they earn $420 or more per year and don't provide their TFN, the financial institution will withhold PAYG tax at 47%. Again, they'll need to lodge a tax return if they want a refund.

Once your child turns 16, as long as they provides their TFN, the financial institution will not withhold tax on any interest earned.

If your 16 or 17 year old doesn't provide their TFN, the financial institution will withhold PAYG tax at 47% and they need to lodge a tax return to get it refunded.

Frequently Asked Questions

• Can a grandparent open a bank account for a grandchild in Australia?

  Some banks specify that you must be either a parent or guardian to be able to open a bank account on behalf of your grandchild. It's a good idea to contact the bank to ask what its rules are for who can open an account for a child. If you can open an account for your grandchild, you'll usually need to visit the bank and provide identification for both you and your grandchild.

• Does ING have a child account?

  ING does not offer a savings account for children. They used to have a the Orange Everyday Youth account, but stopped offering it to new customers in 2022. You need to be at least 18 to open an ING Savings Maximiser or Savings Accelerator.

• Can kids under 13 have a bank account?

  Yes, children under 13 can have a bank account in Australia with parental consent. Many banks offer savings accounts for this age group.

• How old do you have to be for an ING savings account?

  You need to be at least 18 years of age to open an ING savings account, making them unsuitable for children.

• Can you open an account for a child?

  Yes, parents or guardians can open a bank account for a child in Australia. Most banks require identification documents and parental consent.

Written by

Sarah Megginson

Head of editorial

As an authority on all things personal finance, Sarah Megginson is passionate about helping you save money and make money. She is an editor and money expert with 20 years’ experience and an extensive background in property and finance journalism. Sarah holds ASIC RG146-compliant Tier 1 Generic Knowledge certification, and she's a regular media commentator, appearing weekly on TV (Sunrise, Channel 7 news, Nine news), radio (KIIS FM, Triple M, 3AW, 2GB, 6PR) and in digital and print media. See full bio

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Sarah has written 191 Finder guides across topics including:

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Co-written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 625 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living