Savings Account for Baby

Compare your savings accounts available for babies with Savvy and find the best fund for your newborn.

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, updated on July 28th, 2023       

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Compare savings accounts

Are you looking to grow your savings?  Compare a wide range of savings accounts with Savvy so you find the best deal in Australia and the highest interest rate to help grow your savings.  

site-logos Rabobank High Interest Savings Account
  Maximum interest rate Base interest rate Introductory offer period Government guarantee  
site-logos 5.75% p.a. 4.40% p.a. 4 months Yes
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Rabobank’s High Interest Savings Account helps grow your savings while offering flexibility and easy access to your money.

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site-logos Up Savers Account
  Maximum interest rate Base interest rate Introductory offer period Government guarantee  
site-logos 3.60% 0.00% N/A Yes
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Use invite code SAVVY10 for $10 upon successful sign-up. (Refer to offer T&Cs on Up website)

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Compare savings accounts for babies

It’s never too early to start saving on your child’s behalf, so if you have a new baby, it’s worth considering setting up a savings account in their name.

Take advantage of the ability to start tucking money away for their adolescent years while also having a resource to teach them the fundamentals of money. Comparing with Savvy ensures you will find the best savings account for your baby to give them a head start in life.

What are babies’ savings accounts?

Babies’ savings accounts are those which are designed for minors under the age of 18. These low-cost accounts are tailored towards parents or guardians who are looking at starting a savings account for their new baby or child. It allows caregivers to put money away for them and teach them the basics of saving and finance.

You’re allowed to open an account for your child as soon as they’re born. These types of accounts typically have an age limit of 18 years old, but this varies depending on who you bank with. Youth savings accounts can be opened right up until you turn 25 years old.

How do I open a babies’ savings account?

Setting up a babies’ savings account is relatively straightforward, as you can follow these simple steps:

Compare your options: Comparing with Savvy will help you find the best deal on the market. We make it easy for you to find a low-cost account with a top interest rate so you can make your money go further.

Check the eligibility: You must have an Australian residential address to open an account and your child must fall within the age guidelines, so it’s important to double-check that you qualify before applying.

Apply with a bank: Once you’ve found the account you want, you can apply online or via a bricks-and-mortar branch. You’ll need to supply two forms of ID (such as your driver’s licence and Medicare card) for yourself and one form of ID for your child. A current passport or birth certificate is sufficient in the case of your child.

Open your account: You’ll receive a welcome pack from your institution which will include your BSB and account number. Once you have that, you can start depositing into your child’s account.

What are some of the features to compare on these accounts?

Competitive interest rates

Base interest rates on babies’ savings accounts are sometimes up to four times higher than those offered on your average savings account. It’s important to secure the highest rate possible for your child, as this can help you grow their savings substantially. For example, if you invested $400 monthly at a rate of 0.5% p.a. over 14 years, you could earn $2,400 in interest. However, if your rate was 1.5% p.a. instead, the interest you earn would grow more than threefold to $7,525. You can use Savvy’s handy online savings calculator to estimate how much interest your child could earn.

Parental controls

These controls will come in handy when your child is old enough to start spending their own money. Parental controls are mandatory for children under the age of 12 and allow parents or guardians to set spending limits, receive bank statements and be a signatory to any transactions.

Minimal deposit requirements

You won’t have to part with too much money to keep the account open, with low or no deposit requirements. These conditions can range from $5 to $10 depending on who you bank with. Use Savvy’s online calculator if you need help working out how much to deposit to reach your child’s savings target.

Balance conditions

Very few institutions enforce minimum balance conditions on these accounts. If they do, the requirement will be that you keep your child’s account balance above $0. Some banks enforce maximum balance limits of $5,000, while others will only set these in relation to earning bonus interest.

No fees

Banks don’t charge fees for account keeping or transactions on babies’ savings accounts. This prevents your child from having the interest they accrue eaten away by small charges.

Bonus interest

The bonus interest rates on these accounts tend to be very competitive. Before being blinded by the big figures, check the conditions your child needs to meet to earn the bonus are achievable and affordable.

Easy access

A savings account can be easily linked to your baby’s bank account so, when your child is old enough, they can use a debit card or deposit money at ATMs which accept cash deposits.

Fun extras

Banks offer child-friendly resources which help your youngster expand their financial literacy. These include downloadable budgets, household chore charts and interactive videos. Some banks send out a piggy bank as a gift on your child’s birthday.

Types of savings account

Why compare savings accounts with Savvy?

Top tips for comparing baby savings accounts

Find a high interest rate

The better your rate, the better your balance will be. Finding a competitive interest rate also means you’ll fast-track the achievement of a savings goal. You can use Savvy’s savings goal calculator to work out how long it’ll take you to reach your target.

Use Savvy’s easy-to-follow guide

Comparing with Savvy can help you make the most informed choice when opening a savings account for your child. Comparing savings accounts with our easy-to-follow comparison information and simple tips gives you a sure-fire way of tracking down the best rate on the market and getting the most out of your baby’s money.

Compare bonus interest conditions

Keeping one eye on the future is key when weighing up which bonus interest requirements suit you and your child. Select an account with requirements you know your child will be able to afford when they start earning pocket money or a casual wage.

Weigh up parental controls

Different accounts come with different levels of parental controls, so it’s important to compare so you can find the one that works best for you moving into the future before setting up an account. Most will require you to be a signatory to any purchases, whereas others go further and allow you to cap your child’s spending.

Common questions about baby savings accounts

Can I open an account as a baby’s godparent?

Yes – you can open a savings account for your godchild. Anybody can open a savings account for a child so long as they have a copy of that child’s birth certificate.

What happens to my child’s account once they reach 18 years old?

Banks have roughly a year to write to the account holder signalling that they’re reaching the age of maturity on their account. If there’s no response, the financial institution will archive the account. It can be retrieved within seven years, after which it’s claimed by the Australian Securities and Investment Commission (ASIC) and transferred into a lost money fund. You can still obtain it from there, though, using ASIC’s unclaimed money search.

Do I have to pay tax on interest earned in a baby savings account?

Yes – any tax earned on a babies’ savings account must be declared at tax time. If you’ve opened a savings account for a newborn and have been making deposits into the account, you will need to include any interest earned on your tax return.

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