The Best Bank Accounts for Kids 2024

Do you need to open a bank account for kids, but you're not sure where to start? We’ve got you sorted!

The Australian economy might be experiencing some of its darkest days, and it can be hard to know who to trust when it comes to our children's hard-earned pennies, but don't worry; we’ve scanned all the websites of the big banks and not-so-big banks to bring you options for some of the best bank accounts for kids in 2024.

Please note: This is factual information and is not intended as a recommendation or statement of opinion. Consider seeking financial advice based on your circumstances before making any financial decisions. Information is current at the time of publication: March 2024. 

The Best Bank Accounts for Kids in 2024

1. Commonwealth Bank | Youthsaver Account

The Commonwealth Bank Youthsaver Account features a 5.00% p.a. total variable rate when you grow your balance (excluding interest and bank-initiated transactions) each calendar month on balances up to and including $50,000. With a 2.60% p.a. standard variable rate and a 2.40% p.a. bonus variable rate when the above criteria is met, it's one of the best bank accounts for kids and young savers.

With no account or withdrawal fees and bonus interest for growing your savings, it's a great account for establishing good habits and long-term money goals.

2. Westpac | Bump Savings

Developing early habits of saving regularly can be game-changing for a child's future financial skills. With a Westpac Bump Savings account, you can kickstart their savings journey by setting personalised goals and watching money grow.

The account features a total variable interest rate of up to  5.00% p.a., and best of all, there are no account-keeping or transaction fees, so every dollar you save goes straight toward your goals. Simply make deposits, maintain a growing balance, and keep your account above zero to enjoy bonus interest each month!

3. People's Choice | Young Saver

The People's Choice Young Saver account is another one of the best bank accounts for kids in 2024.

There's no need to worry about minimum opening deposits or monthly fees, and you can enjoy competitive interest rates and even earn bonus interest when you make regular deposits without withdrawals. Plus, you'll have 24/7 access through our convenient Mobile Banking App and Internet Banking. It's the perfect way for young savers to start growing their money!

This account has an interest rate of 0.10% p.a.—but if you deposit a minimum of $5 and make no withdrawals in any month, you can earn bonus interest to the tune of 5.05% p.a. Talk about an incentive! 

4. Great Southern Bank | Youth eSaver

It's never too early to start saving! The Great Southern Bank Youth eSaver everyday online bank account for kids is designed for kids from newborn up to 17 years and provides a generous interest rate of 5.5% p.a. on balances up to $5,000, then at 1.00% p.a. on the balance.

This flexible bank account has no ongoing account fees or banking free and unlimited free withdrawals. Plus, kids can access their savings without affecting their interest rates.

A parent or guardian will have to authorise the account opening and be listed as a signatory for children under 10, however, kids from 10 to 17 years old can apply independently as the main account holder - very grown up and an important milestone in their journey to financial autonomy.

How Your Child Can Learn to Manage Their Own Money

Kit is an innovative app owned by CommBank, built especially for kids and designed to deliver the best money experience possible for young Australians. 

Kit helps kids get hands-on financial education experience, promotes mindful spending, and gives them autonomy and ownership of their money. The 'earning-and-learning' platform also imparts bit-sized (but effective!) lessons to help kids on their journey toward money-mastering, with features including savings stacks, PayDay and ‘nudges’ that encourage them to achieve their goals.

Kit has adopted a scientific approach to help little learners build financial independence and confidence. With their own fun, customisable Kit Account and a digital and physical prepaid card, savvy savers can easily manage their own earnings and spending, and watch their savings grow! 

Piggy Banks for Kids and Other Important Things to Consider

Recently we discovered (the hard way) that many of the Big Banks no longer have coin machines - incredibly disappointing! I have strong childhood memories of taking my piggy bank into the branch, and I loved seeing the numbers on my passbook grow! For me, this is a missed opportunity for kids. ANZ request that you count and bag the money yourself before coming to their branches. Some parents with older children may still find value in this exercise. 

Did you know St George no longer has Happy Dragon Accounts - bye-bye friendly green dragon - and CBA has dropped the most famous of all kids' accounts – the Dollarmite? Plus, school banking programs are no longer supported in NSW public schools as of this year.

According to The Barefoot Investor, banks will automatically offer your child their first credit card at 17. This is not something I want for my kids personally, so you might want to watch out for that too!

Be mindful that many banks will require the parents/guardians to also hold an account with them first before allowing them to open a bank account for a child. Of course, adult accounts almost always attract fees and charges, so it's best to understand what that will cost you and what the restrictions (if any) will be.

And finally, remember, it's okay to change as many times as you like. Gone are the days of personal relationships with your local bank manager. Banks constantly change their rates, so don’t be frightened to follow the best rates and change accounts/banks as you see fit. At the end of the day, it’s about creating the best wealth for your children.

Taxation of Interest Earned on Bank Accounts for Kids

Please note that special rules are in place for the taxation of interest earned on bank accounts for kids, so please refer to the Australian Taxation Office for details.

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