Compare children's savings accounts online

Compare interest rates, fees, features and more from 70+ lenders - Data last updated on 22 May 2018

Now showing 1 - 9 of 9 children's savings accounts
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Saver Account
Maximum rate
2.55%Intro 4 months then 2.10%
Base rate
2.10%
Maximum monthly interest
$12.75
Total interest earned
$270.25
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Serious Saver Account
*Make no withdrawals during the month
Maximum rate
3.00%*Intro 4 months then 1.60%
Base rate
1.60%
Maximum monthly interest
$15.00
Total interest earned
$318.46
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Bump Account
*Make a deposit to the account, account balance is higher at the end than the beginning and account balance is above $0 at all times.
Maximum rate
2.30%*
Base rate
1.50%
Maximum monthly interest
$11.50
Total interest earned
$243.53
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Online Savings Account
*Make a weekly tap & go payment with your Everyday Transaction Account debit card
Maximum rate
2.85%*
Base rate
1.30%
Maximum monthly interest
$14.25
Total interest earned
$302.37
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Flexi Saver
*Ensure that on the last business day of the month, your closing balance is at least $300 higher (excluding interest) than the opening balance on the first business day of that month
Maximum rate
2.50%*
Base rate
1.25%
Maximum monthly interest
$12.50
Total interest earned
$264.90
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Maxi Saver
Maximum rate
2.85%Intro 3 months then 0.80%
Base rate
0.80%
Maximum monthly interest
$14.25
Total interest earned
$302.37
Compare
Online Saver
Maximum rate
2.55%Intro 3 months then 0.50%
Base rate
0.50%
Maximum monthly interest
$12.75
Total interest earned
$270.25
Compare
Bonus Saver
*Deposit $100 or more and make no withdrawals each month
Maximum rate
2.60%*
Base rate
0.15%
Maximum monthly interest
$13.00
Total interest earned
$275.60
Compare
Progress Saver
*Single deposit of $10 or more a month and no withdrawals, fees or charges processed to the account in that same month
Maximum rate
1.71%*
Base rate
0.01%
Maximum monthly interest
$8.55
Total interest earned
$180.67
Compare
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Children's savings accounts

Saving is a great habit to teach children. The sooner they learn about financial discipline and delayed gratification, the sooner they can start building wealth. And the sooner they start building wealth, the easier they’ll find it to take their first steps on the property ladder and save for their retirement.

Another benefit of getting kids involved with saving is that they learn how to manage a bank account. The more they develop their financial literacy, the easier they’ll find it to understand more complicated products and strategies later in life.

With that in mind, a children’s savings account can be a good way for children to learn about money, saving and banking.

Most lenders that offer traditional savings accounts also offer dedicated savings accounts for children. As a general rule, children’s accounts don’t charge ongoing fees, yet they pay relatively high interest rates.

Standard features of children's savings accounts

Children’s accounts generally allow free deposits and withdrawals – but the free withdrawals might not be as free as they sound.

Many children’s accounts will pay a relatively low level of regular interest, as well as a relatively high level of bonus interest for those months in which no withdrawals are made. So free withdrawals can actually prove costly.

Still, there are two benefits to these sorts of products. First, they give children an incentive to increase rather than decrease their savings. Second, they teach a valuable lesson that financial products often come with catches and can be more complicated than they initially seem.

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Tax rules for children's savings accounts

Given that children’s savings accounts can only be opened by minors, they must be free of tax obligations, right?

Wrong.

The Australian Taxation Office (ATO) imposes strict rules around children’s savings accounts because it wants to stop parents evading taxes by parking money in their children’s accounts.

Here, in the ATO’s words, are the official rules on children’s savings accounts:

“If your child is less than 16 years old, special rules apply to their income from a savings account. When we work out their age, we treat them as being under 16 years old until the end of the calendar year in which they turn 16.

“If your child is:

  • any age and they earn less than $120 per year from savings accounts per year, their financial institution will not withhold tax
  • less than 16 years old and earns between $120 and $420 from savings accounts per year and
    • provides either their date of birth or a tax file number (TFN), the financial institution will not withhold tax and they don't need to lodge a tax return
    • doesn't provide either their date of birth or TFN, the financial institution will withhold pay as you go (PAYG) tax at 49% and they need to lodge a tax return if they want a refund
  • less than 16 and earns $420 or more from savings accounts per year and
    • provides their TFN, the financial institution will not withhold tax
    • doesn't provide their TFN, the financial institution will withhold PAYG tax at 49% and they need to lodge a tax return if they want a refund
  • 16 or 17 years old, earns $120 or more from their savings account per year and
    • provides their TFN, the financial institution will not withhold tax
    • doesn't provide their TFN, the financial institution will withhold PAYG tax at 49% and they need to lodge a tax return if they want a refund.

“If you have a joint account between an adult and a child aged under 16 years, the same rules apply as those for a 16- or 17-year-old.”

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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