Encouraging kids to develop good money saving habits early can turn them into incredible savers. But how do you know the best place to open up an account?
They’re never too young to learn how to manage money and opening a bank account is a great way to introduce them to the concept of saving. You’ll also help them earn a little extra pocket money in the process.
Find The Best Account
With a Bankwest Kids’ Bonus Saver, you can teach kids the benefits of regular saving with bonus interest. (Applied each month you deposit between $25-$250 and don’t make any withdrawals.) This type of account is for kids under 15, however only parents, guardians or adult signatories can open, access and make withdrawals. No account fees. Variable bonus interest rate. Learn more.
Westpac is offering a whopper of a deal for every child born in 2017: a $200 contribution to their savings account! Essentially, if a parent opens a Westpac Bump Savings account in their child’s name between 8 April 2017 and 31 May 2018, they’ll deposit $200 into it, which the child can withdraw once they’ve reached 16. No transaction or service fees. Bonus interest is payable each month you make a deposit, ensuring the balance is higher at the end of the month than the beginning. Total variable interest rate. Learn more.
ANZ Progress Saver
With zero transaction fees for under 18s and no monthly service fees, the ANZ Progress Saver is a great way to introduce kids to the benefits of early regularly saving and interest earning. We love that you can set up regular deposits to help move savings along and that there’s a handy graph to help track progress. No account or transaction fees either. Learn more.
When you open a Youthsaver account for your child and make at least one deposit and no withdrawals each calendar month, you’ll earn bonus interest. We like that they have an app designed for under 14s and banking available through participating schools via School Banking. Accounts are designed for under 18s. No withdrawal or account fees. Learn more.
Another option is the NAB Classic Banking Account, with no monthly fee. Learn more.
The Commonwealth Bank’s (CBA) School Banking program has been the major player in the area of kids’ bank accounts for more than 80 years, with thousands of Australian schools participating in the scheme. If your child’s school participates then letting them join will help them learn to save in an engaging way.
- Kids learn the ins and outs of banking via a rewards program linked to their account.
- Points earned are based on the number of deposits, rather than the amount of cash deposited.
- The program is also a fundraiser for the schools, who receive a commission of $5 per account activated, plus five per cent of any money deposited.
CHOICE warns, watch out for sneaky fees.
Choice shares that banks generally won’t charge kids account-keeping fees, but other fees can apply. Kid’s accounts may only offer one free withdrawal per month, and then charge fees especially for over-the-counter withdrawals.
Banks may also penalise kids for dumping a pile of coins on the counter. While most institutions exempt them from a flat or percentage-based coin-counting fee, some will take a cut.
Once your child hits an age-limit – usually 12 – their account might automatically convert. Make sure the new account is fee-free, and check the interest rate and conditions.
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