The humble kids piggy bank has evolved significantly over the years. Gone are the days of dropping a dollar into a cash box; children can now choose from accounts with competitive interest rates and interactive financial education tools.
Both kids savings accounts and kids bank accounts may offer fun and helpful ways to grow a child’s financial literacy. The most well-known being the popular Dollarmites program from Commonwealth Bank, which operates in a number of schools across Australia.
But when it comes to high interest rates, kids savers have taken a hit in the last year. Interest rates across the country have dropped to record lows, pushed by the Reserve Bank of Australia cash rate sitting at only 0.10 per cent.
RateCity research found that the average kid’s savings account interest rate currently sits at 0.82 per cent. This is a decrease of 43 basis points from the same time last year when the average rate was 1.25 per cent.
Comparatively, the current average savings account rate for adults is 0.35 per cent. While the average kids savings account rate typically sits higher than the average adult savings account rate, you may still need to search around and compare your options to find an interest rate that sits above the current rate of inflation.
So, how can Aussie parents hoping to teach children about money and actually find a competitive interest rate to help grow their balances? This is where RateCity’s leaderboards come in.
We’ve done the hard work for you by ranking some of the most competitive savings kids savings accounts in the marketplace with our Real Time RatingsTM system.
Real Time RatingsTM results are calculated in real time, unlike other rating systems that grade their products once or twice a year. Each savings account is given a score out of five stars, based on interest earned and flexibility.