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Best Childrens Bank Account Australia

Compare some of the best children’s bank accounts and bank accounts for kids

Gone are the days of the humble piggy bank. Find your child's next bank account today and compare fees and features from providers big and small. There is no single best bank account as everyone’s needs are different.

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Mark Bristow

Updated on

04 Dec, 2024

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Children's bank accounts in Australia can be an invaluable tool in teaching your kids financial literacy and good financial habits (such as savings) from a young age. They can also just be a handy place for storing your kids pocket money.

However, it’s easy to assume that children’s bank accounts are much more straightforward than those for adults. But kids’ bank accounts are still a financial product that come with their own sets of rules.

Here is a comprehensive look at everything you need to know about children's bank accounts.

What are the benefits of children's bank accounts?

A children's bank or savings account has a range of benefits for both child and adult, including:

Security. Storing your child's pocket money, or even inheritance from a family member passing, into a bank account is much more secure than your classic piggy bank.
Interest. Like a savings account, many children’s bank accounts have a base rate or standard interest rate, as well as a bonus or maximum interest rate which can be unlocked if certain conditions are met. Some of these conditions include depositing a minimum amount of money per month or making no withdrawals in a month.
Financial literacy. Bank accounts can be invaluable tools in teaching your kids financial literacy and good financial habits (such as saving their pocket money) from a young age. Tech-savvy young savers can also take advantage of online banking tools or educational mobile apps to help them better understand their finances.
Savings goals. The biggest benefit of a bank account for young savers is the ability to help them reach their savings goals. Whether they're hoping for a specific toy or dreaming of a new bike, they can watch their funds grow, and their goals get closer and closer, with a bank account.

What fees apply to children’s bank accounts?

Most banks tend not to charge high ongoing fees for children’s bank accounts. That’s not to say you don’t need to look out for fees. Here are some costs you should keep an eye out for:

Monthly fees, like account-keeping fees
Withdrawal fees
ATM access fees
Card replacement fees
Overdraw fees
Transaction fees

What perks do children's bank accounts come with?

You may be curious as to what perks kid's bank accounts come with. The main features typically include:

Higher ongoing interest rates than adult saver accounts.
Access to interactive, educational apps for financial literacy development.
Peace of mind for parents including:
- Limited Mastercard or Visa debit card access for account holders aged 12 or under
- No credit card access
- Parent or guardians acting as signatory on purchases
- Access to statements for transparency in usage.

What should you look for in a children’s bank account?

While everyone’s situation is different, it’s safe to say the bank accounts that reward kids for saving and depositing money regularly are generally the accounts to look for.

It can be useful to choose a simple bank account that your child can eventually easily manage themselves. Whether this is through kid-safe internet banking, mobile banking or a helpful app designed to teach children about money, giving them some control over the account will help to boost their financial literacy.

Some banks also offer free resources to teach kids good financial habits, including videos, online games, mobile phone apps and other activities. These extras could mean some bank accounts offer additional value to kids.

It's also important to compare the child's account conditions that need to be met to earn to earn the highest interest rate offered. This may include maintaining a minimum account balance, making regular deposits into the account, making no withdrawals or direct debits from the account and much more.

A basic account with no account-keeping fees could be a good option to help prevent the child’s balance being eaten up by fees.

Are school banking programs safe?

Often, there are programs implemented through school, with the Commonwealth Bank's Dollarmites program being the most well known. While it can have its benefits, it's important to remember that schools are incentivised to bring children on to these accounts. Plus, if you're not regularly checking any potential fees or conditions needed to meet to earn interest, you may be stung with ongoing costs and not get the best bang for your kid's buck.

What else should I know about children’s bank accounts?

Opening a children's bank account is a big decision to make for your child. Before opening an account, it’s important to consider the following:

Conditions and eligibility. Is there a minimum amount needed to open an account and the minimum and maximum balance required to keep the account open? What about conditions to to earn a bonus interest rate? Take a look at the product disclosure statement (PDS) before applying to ensure you and your child can meet any eligibility criteria involved.
Fees and costs. The PDS will also outline any potential fees you may have to pay, such as those listed above. Keeping fees down is one way you can ensure you have the best bank account for your child.
Linked accounts. Some banks also require the child to have a transaction account before they can open an associated kid's savings account, which offers higher interest.
Loyalty tax. It’s important to note that many Australian adults end up staying with the same bank they joined as a child. However, most banks tend to give their more competitive products and offerings to new customers to get them through the door. By regularly comparing children's bank accounts you may teach your children the value of doing their own research and how to avoid a "loyalty tax".

Does the children’s bank account need to be linked with a parent?

No, you do not generally need to link your own transaction account to your kid's bank accounts. Some providers may allow this, but it's typically seen as a seperate account to your adult one.

This is by design, as the Australian Taxation Office (ATO) wants to prevent parents from using a child's savings account as a tax loop hole. There are tax rules involved with kid's bank accounts:

No tax applies if account earns less than $120 per year in interest.
If your child manages the savings account, they must lodge a tax return in their own name when they are under 16, make regular deposits and earn more than $420 in interest.
If you manage the account and make regular deposits and withdrawals for your child, then you may need to declare any interest earnings in your own tax return. This is because the interest earned on 'money gifts' deposited to your kid's bank account must be declared to the ATO.

For more information on taxation laws for children's bank accounts or children's savings accounts, please visit this page.

Generally, a person needs to be younger than 18 years of age to qualify for a children’s bank account, but the age limit could be lower for certain accounts. And while the money does belong to the child, a parent or guardian often needs to help their child set up their first account if they are under 14 years old. This may involve providing personal identification information, such as a birth certificate, for the application.

Alex Ritchie

Personal Finance Editor

Alex Ritchie was a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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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, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

What are the benefits of children's bank accounts?

A children's bank or savings account has a range of benefits for both child and adult, including:

Security. Storing your child's pocket money, or even inheritance from a family member passing, into a bank account is much more secure than your classic piggy bank.
Interest. Like a savings account, many children’s bank accounts have a base rate or standard interest rate, as well as a bonus or maximum interest rate which can be unlocked if certain conditions are met. Some of these conditions include depositing a minimum amount of money per month or making no withdrawals in a month.
Financial literacy. Bank accounts can be invaluable tools in teaching your kids financial literacy and good financial habits (such as saving their pocket money) from a young age. Tech-savvy young savers can also take advantage of online banking tools or educational mobile apps to help them better understand their finances.
Savings goals. The biggest benefit of a bank account for young savers is the ability to help them reach their savings goals. Whether they're hoping for a specific toy or dreaming of a new bike, they can watch their funds grow, and their goals get closer and closer, with a bank account.

What should you look for in a children’s bank account?

While everyone’s situation is different, it’s safe to say the bank accounts that reward kids for saving and depositing money regularly are generally the accounts to look for.

A basic account with no account-keeping fees could be a good option to help prevent the child’s balance being eaten up by fees.

What else should I know about children’s bank accounts?

Opening a children's bank account is a big decision to make for your child. Before opening an account, it’s important to consider the following:

Conditions and eligibility. Is there a minimum amount needed to open an account and the minimum and maximum balance required to keep the account open? What about conditions to to earn a bonus interest rate? Take a look at the product disclosure statement (PDS) before applying to ensure you and your child can meet any eligibility criteria involved.
Fees and costs. The PDS will also outline any potential fees you may have to pay, such as those listed above. Keeping fees down is one way you can ensure you have the best bank account for your child.
Linked accounts. Some banks also require the child to have a transaction account before they can open an associated kid's savings account, which offers higher interest.
Loyalty tax. It’s important to note that many Australian adults end up staying with the same bank they joined as a child. However, most banks tend to give their more competitive products and offerings to new customers to get them through the door. By regularly comparing children's bank accounts you may teach your children the value of doing their own research and how to avoid a "loyalty tax".

Compare some of the best children’s bank accounts and bank accounts for kids

Providers we compare

On this page

What are the benefits of children's bank accounts?

What fees apply to children’s bank accounts?

What perks do children's bank accounts come with?

What should you look for in a children’s bank account?

What else should I know about children’s bank accounts?

Does the children’s bank account need to be linked with a parent?

Frequently Asked Questions

How do I open a bank account for a child?

Can I open bank accounts for my children?

How to transfer money to another bank account

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Did you find this page helpful?

On this page

What are the benefits of children's bank accounts?

What fees apply to children’s bank accounts?

What perks do children's bank accounts come with?

What should you look for in a children’s bank account?

What else should I know about children’s bank accounts?

Does the children’s bank account need to be linked with a parent?

Frequently Asked Questions

How do I open a bank account for a child?

Can I open bank accounts for my children?

How to transfer money to another bank account

Share this page

Latest bank accounts news

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How do you deposit cash or change into your bank account?

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