Kids accounts offer children less than 18 years of age the ability to learn how to save their money. Kids accounts are specially designed savings accounts that usually include conditions much like other savings accounts but with children in mind. For instance, the marketing of children’s savings accounts are generally colourful and playful with images of toys depicting what children might save for. And the conditions on kids’ accounts are usually more achievable for a child than conditions for adult savings accounts such as a smaller amount of money deposited per month to receive interest.
Just because it’s a children’s savings account doesn’t mean it will be tax free so contact the Australian Taxation Office (ATO) to understand how tax will be applied.
Interest rates for kids accounts can vary greatly so make sure you compare savings accounts online for some of the best deals in Australia. Some of today’s best interest rates on savings accounts are listed to the right of this article.