See some of the best kids savings account rates up to 5.75% p.a., with options for newborns all the way up to teenagers and young adults.
Written by Isabella Visser and fact checked by Sean Callery. Updated 17 Jun 2026.
Earn up to
5.25%
p.a. variable when monthly criteria are met
IMB Bank Reward Saver Kickstart Account
Available for 13-17 year olds and students, trainees or apprentices up to 30 years on balances up to $100k. Deposit $20 per month and make no withdrawals to qualify. See website for T&Cs
The table below shows the top kids savings account rates from Money.com.au’s database. The table is sorted by highest maximum interest rate, then highest base rate.
| Product name | Base interest rate | Max interest rate | Bonus interest conditions | Min-max balance | Age eligibility |
|---|---|---|---|---|---|
Newcastle Permanent Smart Saver Under 25s Account | 0.05% | 5.75% | Grow your balance and make no more than 2 withdrawals each month | Up to $50,000 | Under 25s (Qld & NSW residents only) |
First Option Bank Kids Bonus Saver | 0.05% | 5.55% | Deposit $5 per month and make no withdrawals | Up to $5,555 | Under 18s |
Great Southern Bank Youth eSaver Account | 5.50% | 5.50% | n/a | Up to $5,000 | 0-17 years |
Firefighters Mutual Starter Saver* | 5.25% | 5.25% | n/a | Up to $50,000 | Under 30 |
Health Professionals Bank Starter Saver* | 5.25% | 5.25% | n/a | Up to $50,000 | Under 30 |
Teachers Mutual Bank Starter Saver* | 5.25% | 5.25% | n/a | Up to $50,000 | Under 30 |
UniBank Starter Saver* | 5.25% | 5.25% | n/a | Up to $50,000 | Under 30 |
Horizon Bank Youth Reward Saver (13-17) | 2.25% | 5.25% | Deposit $10 or more into account each month and make no withdrawals | $0+ | 13-17 years |
Horizon Bank Super Saver (0-12) | 1.75% | 5.25% | Deposit $2 or more into account each month and make no withdrawals | $0+ | 0-12 years |
IMB Bank Reward Saver Kick Start Account | 0% | 5.25% | Deposit $20 and make no withdrawals each month | Up to $100,000 | 13-17 years (plus students, trainee, or apprentice aged 18-30 years) |
These are the top savings rates for kids available from Australia’s four major banks: ANZ, CommBank, NAB and Westpac.
| Product name | Base interest rate | Max interest rate | Bonus interest conditions | Min-max balance | Age eligibility |
|---|---|---|---|---|---|
NAB iSaver | 3.60% | 5.25% | Bonus rate is added for the first four months, if you have not held a NAB iSaver account in the last 12 months | Up to $20 million | 0+ |
Commbank Youthsaver account | 2.15% | 5.05% | Grow the monthly balance each month | Up to $50,000 | Under 17s |
Westpac Bump savings account | 1.75% | 5.05% | Account balance must not fall below $0, with at least one deposit each month. It must have a higher balance at the end of the month than at the start. | $0+ | 8-18 years |
ANZ Progress Saver | 0.01% | 3.75% | Deposit at least $10 each month and make no withdrawals | $0+ | 12-18 years |
These days, most banks offer a savings account specifically for kids. But not all banks offer a decent rate of interest. Money.com.au’s savings database spans more than 40 kids accounts and rates on those range from 5.75% all the way down to 0.02%. In short, a good return on your child’s savings is not guaranteed. You’ll need to shop for the best rates.
Many high interest savings accounts come with conditions that need to be met in order to earn the bonus interest, and kids savings accounts are no different. The conditions could include needing to deposit a particular amount each month, making no withdrawals, or both. It’s important to choose an account where you can easily meet the bonus interest requirements. Missing them means only earning the base interest rate that month and this can be very low or sometimes zero.
Naturally for kids' savings accounts, age is a key eligibility factor. The minimum age required to sign up for an account will depend on the provider, with some banks allowing parents/guardians to have an account for their newborn while others are aimed at teenagers. It’s also important to consider the age cap of the account. When the child reaches that age, they may lose the competitive interest rate and be left with what is effectively an everyday transaction account.
The maximum balance available on a kids savings account varies a lot. A cut-off of $5,000 is fairly common among the accounts on our database, while some options set the max at $50,000 or higher. Depending on your savings goals and intended use for the money, the limit can be a key factor, as any funds deposited above that amount will likely earn less interest, or potentially none at all.
Most savings accounts for kids don’t have any ongoing fees. If you’re considering accounts that do charge regular fees, you need to be really clear on what you’re getting in return. The same goes for transaction fees. Ideally look for an account that doesn’t charge you to move money in or out.
Some banks offer resources for parents and kids to make managing and tracking savings easier and more fun. This can include settings for pocket money payments, a mobile app, parental controls, and the ability to create savings goals which kids can engage with. Most providers also offer general learning resources, such as activities, videos, games and blogs.
A kids savings account is a high-interest savings account geared towards children and teenagers. There are a few reasons why a parent or guardian may want to open a kids savings account, including:
According to Money.com.au research, most Australians (51%) believe parents should start teaching their kids basic money concepts, like savings, budgeting and spending before the age of 10. About a quarter of those we surveyed said ten to thirteen years old is an appropriate age. The remainder believe this kind of learning should begin when kids are older.
Whatever age this journey starts for kids, a savings account can be a useful tool by offering a secure and convenient place to keep cash.
Unlike a piggy bank, a savings account will grow the account’s total through compound interest. Basically that means if you earn interest on your savings, the next month you’ll earn more interest on the interest you’ve already earned. That, plus making regular deposits over time, can add up to a considerable total for your kids’ future.
Here’s an example: 6-year-old Max’s parents open him a savings account with an interest rate of 5.25%. They put an initial deposit of $100 in, that he had received from his grandparents as a birthday present. Each week, his parents pay him $10 of pocket money into the account.
In ten years’ time, when Max is 16 years old, he has a total balance of approximately $7,003 in his account, around $1,703 of which was earned from interest.
Sean Callery, Editor
When our eldest daughter was born, we opened up a kids savings account with our existing bank using the money we got as gifts from family. The account still has one of the better rates available and it’s convenient having it with the same bank. Five years on, we have the same account but with a little sister now as a joint account holder. The girls get $50 ‘pocket money’ between them each month, plus gifts at birthdays and Christmas.
It means we’ve recently surpassed the maximum balance for the top interest rate. It’s time for a change to an account with a higher cap. We’ll need to switch the kids account away from our main account, but given how easy it is to move money between banks, that’s not a concern. We figure we’re better off having the best product for our various needs, even if it means juggling multiple banks.
Sean Callery, Editor
Here’s a selection of some of the kids saving resources and initiatives being offered by banks across Australia. These are essentially marketing initiatives by the banks to appeal to parents and get young customers signed up.
A level of skepticism is perhaps useful when assessing these types of services, but they can have some value if the kids account is of a high quality overall.
Annual Education Grant Award and Savings Achievement Awards Each year BankVic rewards kids under 18 in their Little Copper Club with the chance to win a $1,000 education grant if they have at least $250 in their account. There’s also the chance to win the Savings Award for eligible members with at least $100 in their account. This prize value is based on a tiered system that corresponds to the amount of money in the savings account.
Transaction record book Kids can keep track of their money and watch as their savings grow by recording progress in their own record book.
Buck’s Star Saver Club Kids aged up to 12 years old can join BankWAW’s Star Saver Club which comes with an exclusive welcome gift.
Free money box Kids can get a free money box when their PiggySaver account is opened at a Bendigo Bank branch.
Birthday gift Kids on a Piggysaver account aged between 4-10 years old will receive a birthday gift when they visit a branch.
Passbook Kids can keep track of their savings with a tangible record in Cairns’ Bank passbook.
Annual birthday gift card Kids up to 12 years old with a Coastline Bank Cubs Account will receive an annual birthday gift card.
Cubs School Visit Program Coastline Bank offers primary school classes the opportunity to learn practical money skills through a visit to one of its branches in Macleay, Hastings, and Manning Valleys. The kids get to do engaging activities, a guided tour, and could receive a goodie bag, a $5 note each, and a certificate.
Cub and Kickstart of the Week Awards Local kids sporting clubs can apply for sponsorship with Coastline Bank to recognise their members aged under 18 with a $10 gift card and an award certificate.
Kit Pocket money app that lets kids complete Money Quests, tick off jobs, set and reach saving goals and track spending. It comes with a prepaid card with set limits and merchant blocks. Available to kids aged five years old and up. Kit is free for Commbank Yello customers. It can also be linked to their Youthsaver account so kids can monitor their account’s total.
The Beanstalk Helps parents to teach kids about money through a range of guidance articles and videos.
Dollaroo Den Gateway Bank offers kids on their Dollaroo savings accounts access to themed finance worksheets and rewards charts that feature unique characters like Dollaroo the kangaroo, Charlie and Owly.
Zoo Club extras IMB Bank offers kids aged 12 and under access to competitions, activities and rewards to keep them engaged with growing their savings. Upon signing up the child will receive an exclusive IMB Zoo gift.
$100 monthly prize draw Zoo account holders located in New South Wales, Australian Capital Territory or Victoria have the chance to win $100 each month. The account holder earns one entry automatically for every deposit of $10 or more into an IMB Zoo account in the child’s name.
Pocket money payments Set up pocket money payments and link them to a chores list in the Westpac app.
Yes, interest earned on a kids savings account is generally considered taxable income according to the ATO. However, the tax treatment depends on who owns the money in the account and who is entitled to the interest earned.
You don't necessarily need to provide a Tax File Number (TFN) when opening a child's savings account. For children under 16, banks can generally accept the child's date of birth instead of a TFN. However, if the required tax information isn't provided, the bank may be required to withhold tax from any interest earned.
Determining whose TFN (if one is required) should be linked to a kids savings account depends on who is considered the beneficial owner of the money and therefore entitled to the interest.
For example, a parent opens an account for their young child, deposits $5,000 of their own money and regularly makes payments and withdrawals from the account to cover preschool expenses. In this case, the money and interest effectively belong to the parent, so the interest would generally be treated as the parent's taxable income.
By contrast, if a child has a savings account in their name and the money in the account comes entirely from birthday and Christmas gifts received from relatives, the interest earned generally belongs to the child. In this situation, the bank will typically require the child's date of birth or TFN for tax purposes.
It's also important to note that special tax rules apply to children's unearned income, including interest earned on savings accounts. While small amounts of interest may not result in any tax being payable, higher amounts can be taxed at significantly higher rates than those that apply to adults.
For more information about how a child’s age influences tax on a kids savings account, check out the Australian Taxation Office’s website.
Before applying, make sure your child fits the age requirements and other eligibility criteria for the savings account, as they will vary from bank to bank. It’s also worth checking if the account’s maximum balance and bonus interest conditions match the savings goals that you have in mind.
Whether you can apply online or have to go into a branch will depend on the bank. While the process for opening a savings account is pretty straightforward, in some cases the provider may require the initial sign up to happen in-person.
The bank will need a parent or legal guardian to provide the child’s identification with either a birth certificate, Medicare card or passport usually being acceptable. You may also need to prove the relationship between child and parent/guardian, which can generally also be done through a Medicare card or birth certificate.
With the savings account opened, it’s time to come up with a plan for regular deposits and encourage your child to learn to save. If there are any parental controls you’d like to add or set up a kids’ pocket money schedule, it’s a good idea to do it now while it’s still fresh in your mind.
Generally only parents or guardians can open a kids bank account for their child and act as a signatory, but some banks will allow grandparents to open an account.
For most banks, kids can open their own savings account independently without needing a signatory when they’re 12 years old.
In Australia, kids savings accounts are offered by authorised deposit-taking institutions (ADIs), which include banks and credit unions. These institutions are regulated by the Australian Prudential Regulation Authority (APRA) and its strict consumer protection standards.
In addition, the Australian Government’s Financial Claims Scheme guarantees deposits up to $250,000 per account holder, per ADI. This protection ensures that if a financial institution fails or collapses, your child’s savings are secure.
According to the Australian Taxation Office, if the money in the account belongs to the child, then so does the interest. While it may be tempting to put your own savings in a kids savings account, the ATO has strict guidelines to prevent parents from claiming the interest.
Instead, parents should put their savings into a high interest savings account or bonus interest account of their own.
If you’re looking for continuity, some of the kids savings accounts with the highest age caps are:
Whether opening a savings account for a newborn baby is worthwhile will depend on your goals and intentions for the account. They’re probably too young to learn about the value of money yet, but it could be a great time to take advantage of long-term compound interest.
For example, a kids savings account with a 5.25% interest rate and $100 initial deposit, with $10 fortnightly payments could have a balance of approximately $5,576 in total after 14 years, or $8,034 when they reach 18 years of age. Those amounts assume the interest rate stays the same over that time period, which it almost certainly won’t, but you get the idea!
Isabella Visser is a Finance Writer with Money.com.au. With her experience in journalism and writing content across multiple platforms she makes finance simpler for readers by creating insightful and engaging content.
Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.
Money.com.au has strict rules and policies in place that ensure we can provide accurate and reliable information to consumers about financial products, without it being influenced by our commercial arrangements. Read more about how we make money and avoid conflicts.
Our high interest savings account comparison is based on products analysed by Money from banks covered by the Government’s Financial Claims Scheme. By default the table is sorted by highest max interest rate, then highest base interest rate, then provider name alphabetically. Check with the provider for full current account details, including rates, fees, eligibility and terms and conditions – and seek financial advice if necessary – to ensure the product is right for you. While this is an extensive list of the savings accounts available in Australia, we do not guarantee that all products in the market are shown.
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