Kids earning higher interest rates than parents

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Banks are paying interest rates of up to 4.75 per cent on children’s savings accounts – although conditions apply.

Bankwest pays a bonus rate of 4.75 per cent on its Kids’ Bonus Saver (see table below), which is available to Australians aged under 15. However, there are two conditions:

  • You must deposit between $25 and $250 per month
  • You must make no withdrawals in the same month

If you fail to meet these conditions, Bankwest will pay only 0.01 per cent interest.

Also, at the end of 12 months, all but $1 is transferred to a linked account, which means that even if you qualify for the bonus rate, it will be calculated on a smaller balance.

The Nexus Mutual Junior Saver account, which is available for under-18s, pays a lower bonus rate (4.35 per cent) than the Bankwest Kids’ Bonus Saver – but the conditions are friendlier:

  • You must deposit at least $2 per month
  • You must make no withdrawals in the same month

If you don’t meet these conditions, you earn the base rate of 3.00 per cent.

At the moment, it is almost impossible for an adult to find an everyday savings account that pays 3.00 per cent interest.

Here is a list of children’s savings accounts with some of the highest interest rates in Australia:

Lender Product Base rate Bonus rate How to get bonus rate
Bankwest Kids’ Bonus Saver 0.01% 4.75% Each month, deposit $25 to $250 and make no withdrawals.
Nexus Mutual Junior Saver 3.00% 4.35% Each month, deposit at least $2 and make no more than two withdrawals.
CUA Youth eSaver 1.00% 4.00% Keep balance under $5,000.
BCU Scoot Super Saver 0.75% 3.50% Each month, deposit at least $20 and withdraw no more than $5.
Endeavour Mutual Bank Young Saver Account 2.00% 3.50% Keep balance under $5,000.
Credit Union SA Children’s Savings Account 0.25% 3.25% Each month, deposit at least 1c and make no withdrawals.
Police Bank Dynamo 0.25% 3.00% Deposit at least $5 per week and keep balance above $500.
First Option Credit Union Kids Bonus Saver 0.15% 3.00% Each month, deposit at least $5 and make no withdrawals. Also, keep balance under $5,000.

Please note that savings accounts that pay the highest interest aren’t necessarily the best savings accounts for each person.


^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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