Kids Savings Accounts

Compare a range of savings accounts with Savvy to see if any options are available for your kids.

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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
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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 4.35% 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 and find the best savings accounts for your kids

Finding the perfect savings account for your child can be the first step they take into the world of managing their finances. Setting them up with an effective account by the time they reach adulthood and are ready for financial independence can give them the leg-up that many young Australians are looking for. Read more about how the best type of savings account for kids works and how to compare its multitude of options to find the best ways to establish savings for your child.

How does a kids’ savings account work and how is it different to others?

A kids’ savings account, also known as a youth or children's savings account, functions in largely the same way as a standard savings account, although it comes with a few key areas that are altered to cater to the needs of children. Firstly, it’s restricted to account holders under the age of 18. In some cases, however, children as young as 14 could become ineligible to hold a kids’ savings account.

Monthly account fees which are often present with standard savings accounts are generally waived when it comes to kids’ savings accounts. Also, you may find that your account provider supplies resources to help educate young account holders about the ins and outs of finance and why it’s important to know about.

Perhaps the most noteworthy difference between this type of savings account and others, though, is that interest rates can be higher for children than adults. Some accounts will offer bonus interest rates upwards of two or three times the standard savings account interest rate, which means that it’s useful for growing your child’s funds as they progress from youth into adulthood.

Additionally, parents can hold some form of control over their child’s account up to a certain age, which can vary between the ages of 13 or 16 depending on your bank or other financial institution. This can grant the ability to place restrictions on your child’s spending habits or their ability to transfer funds.

However, a downside to kids’ savings accounts is that age limits will apply, meaning that your child’s account could be closed or convert automatically to another type of account once they reach a certain age. Depending on your financial institution and the type of account your child has, this could range anywhere between 12 and 18. It’s always important to be mindful of these conditions to prevent an account rolling over into a different savings account that you may not wish to open.

Some accounts of this type will also limit the number of times you can withdraw to five or less, while others may not allow any withdrawals at all without eating into your interest earned. You should try to avoid accounts with such restrictions where possible and stick to those with a higher base rate.

How do I compare different kids’ savings accounts?

Part of the process of finding the right kids’ savings account for your child is surveying the market. Fortunately, you’ll find that there are several points that you can look at when comparing each different account. Always look into the following aspects of a kids’ savings account:

Interest rates

Perhaps the main motivator to set up your kids’ savings account in the first place, interest rates are certainly an important factor to consider when comparing between accounts. As mentioned, there’s potential for high interest rates with a kids’ savings account, so you should enter this process aware of the far greater base rates available.

Bonus interest rates

If you’re confident that you’re able to meet the conditions required to achieve a high bonus rate on your kids’ savings account, either as the account holder or parent, bonus interest rates can be a great incentive and financial benefit for doing so.

Account fees

While most kids’ savings accounts waive monthly fees, this may not always be the case. Additionally, you may be charged a fee for exceeding a pre-determined quota of monthly withdrawals, so ensure that your kids’ bank account doesn’t enforce restrictions in areas that you may use regularly.

Child-friendly banking features

It’s worth checking out each account provider’s website ahead of time to see if they offer any resources to help kids’ account holders learn more about the world of saving and finance. Some financial institutions in Australia afford access to programs for young account holders to educate them more on the topic.


As a parent, you’ll want as much control over your young children’s savings accounts as possible. Almost every financial institution will offer extensive online services or apps to manage your kids’ savings accounts, but you might find that some are more suited to your style of management than others.

Types of savings account

Why compare savings accounts with Savvy?

The pros and cons of kids’ savings accounts


Build interest for your child

High rates on youth savings accounts mean that you can earn a meaningful amount in interest throughout their childhood

Help educate about finance

Entrusting some level of savings account access to your child can help teach them about the importance of financial responsibility

Parental oversight

Parents can control the account to ensure that their child doesn’t spend all of their savings irresponsibly or accidentally


You’ll find that the vast majority of kids’ savings accounts avoid any charges for the maintenance of the account, which can save a reasonable amount in the long run


Account conditions

Some accounts may come with restrictions on the way the account is run, such as meeting a certain minimum number of deposits or withdrawals

Can still be taxed

Interest earned on the principal in your kids’ savings account can still be taxed if it reaches a certain threshold, meaning a tax return will need to be submitted for them. There isn't really such a thing as a tax-free account.

Interest rate may not last forever

Often when you find a great interest rate on a kids’ savings account, it will come with a condition that this will eventually revert to a more standard rate

Top tips for what you can teach your child about saving with an account

How to be responsible and budget

Providing your child with a facility to house their money can give them a practical demonstration of how it can be beneficial to save up for a larger purchase rather than spend more frequently on smaller things.

How to set financial goals

This goes hand in hand with budgeting, as a kids’ savings account can be the perfect way to explain the process between setting a goal and subsequently tracking its progress to show how to achieve it. This can be anything from a new toy to a bicycle, so you can coach your child along the way until they reach the finish line.

How the economy works

Many people in the working world aren’t 100% sure about the complicated machinations of the Australian economy, but you can start to build a base level of understanding for your child. They can see in real time how market factors and events can impact the economy in the form of their interest rate’s fluctuation.

Common kids’ savings account queries

Can I open a kids’ savings account for my baby?

Yes – as soon as they have a birth certificate, you’ll be able to open a kids’ savings account for your baby.

Will I be able to keep my savings in my son or daughter’s kids’ savings account?

No – storing your savings or other funds in a kids’ savings account is prevented by law and will land you in hot water if not declared properly.

Should I give my child a prepaid card instead of a kids’ savings account?

A prepaid card, alongside a kids’ transaction account, shouldn’t be taken out in place of a kids’ savings account if your intent is to grow their savings and restrict their overall access. A prepaid card will only fulfil the need for accessible funds for your child, although they can be an effective way of managing their spending.

Is it best to stick with my current kids’ savings account?

Not without comparing other options on the market, no – interest rates and conditions are prone to change with these accounts, so you should always keep an eye out for better deals on offer.

How can I help my child reach monthly requirements on their kids’ savings account?

One thing you can do is set up an automatic deposit into their account each month to ensure that requirements are met. You should also always keep track of the number of deposits and transactions month-to-month.

Can I apply for my children’s bank account online?

Yes – the application process is just as straightforward online as it is in person or over the phone, if not more so. Savings accounts aren’t as stringent with their documentation requirements in the application process, generally only needing the identity documents of the account holder (your child) and the parent who’ll oversee the account. Ensure that you do your research before applying, though; there’s nothing worse than opening your account and seeing that you missed out on better deals.

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