Opening a savings account for your child is one of the simplest ways to turn pocket money into a habit. The tricky part is not finding an account — it is finding one whose bonus rate your child can actually earn, month after month, without fees quietly eating the balance.
Quick answer: If you want the simplest deal, the Great Southern Bank Youth eSaver stands out because it pays a strong rate without monthly deposit or withdrawal conditions. If your family already banks with CommBank, Youthsaver is the convenient big-bank pick. For an account that can last from the teen years into young adulthood, Bank Australia mySaver is worth a close look. Rates below are variable and were checked on 4 November 2026 — always confirm the current rate with the provider before applying. This is general information only, not personal financial advice.
How to pick a kids savings account
Do not judge an account by its headline rate alone. Check these five things first:
- The bonus conditions. Many accounts only pay the top rate if you deposit a set amount and make no withdrawals that month. Miss one month and you drop to a much lower base rate.
- The balance cap. Some top rates only apply up to $5,000 or $10,000. Above that, the rate can fall sharply.
- Fees. A good kids account should have no monthly account fee. Even a small fee hurts when the balance is only a few hundred dollars.
- Age rules. Some accounts are for under-18s only, some run to age 25, and some convert to an adult account at 18 or 25. Pick one that fits how long you plan to keep it.
- Access. Can a parent manage it online? Can an older teen get a debit card? And what happens to signatory control as the child grows up?
1. Great Southern Bank Youth eSaver
Best for: no monthly conditions.
This is the simplest account on this list. It pays 5.75% p.a. variable on balances up to $5,000, and 1.00% p.a. on the portion above $5,000, with the rate current as at 3 November 2026. There are no monthly deposit or withdrawal conditions to earn that rate, and no monthly account fees. It is for savers aged up to 17, with a parent or guardian as signatory for children under 10, and it converts to a Goal Saver account at age 18. The catch is the cap: once the balance passes $5,000, most of the money earns far less, so it suits younger savers building their first few thousand dollars.
2. CommBank Youthsaver
Best for: families who already bank with CommBank.
Youthsaver is designed for under-18s and charges no monthly account fee. Its maximum variable rate is 5.30% p.a., with a standard variable rate of 2.35% p.a., according to Finder figures updated in late October 2026. You earn the bonus rate in a calendar month when you make at least one deposit and finish the month with a higher balance than you started with. Children under 14 need a parent or guardian to open it; 14 to 17-year-olds can apply in a branch. It is a solid, easy choice if you want branches, the CommBank app, and NetBank in one place — just keep the deposit-and-grow habit going to hold the top rate.
3. Bank Australia mySaver
Best for: teens who want an account that lasts into young adulthood.
mySaver is open to customers under 25, so it does not need to be replaced at 18. It pays 5.35% p.a. variable on balances up to $50,000 and 5.00% p.a. on balances from $50,000.01 to $250,000, effective 15 October 2026, falling to 0.10% p.a. if the bonus conditions are not met. To earn the bonus rate, deposit at least $10 in the month and make no withdrawals. A parent or guardian operates the account as signatory until the child turns 13, and from 13 the child can remove a parent as signatory and apply for a Visa debit card and digital banking. It converts to a Bonus Saver account at age 25.
4. First Option Bank Kids Bonus Saver
Best for: small, regular deposits.
This account suits families who save little and often. It pays up to 5.55% p.a. variable on balances up to $10,000 when the bonus conditions are met — deposit at least $5 in the month and make no withdrawals — on a base rate of 0.05% p.a. It is for under-18s only. The monthly deposit hurdle is one of the lowest on this list, which makes the bonus rate realistic for pocket-money savers. These figures come from provider information checked on 2 August 2026, so confirm the current rate before applying, as rates move.
5. Australian Mutual Bank Young Saver
Best for: an award-winning customer-owned option.
The Young Saver account won Best Kids Savings Account in the 2026 Finder Awards, and it also featured among Mozo Experts Choice winners for kids and teen savings. It is designed for children and teenagers, with bonus interest for regular deposits and no withdrawals, and a balance tier that rewards smaller balances most. Because the bank has since become a division of Teachers Mutual Bank, check the current product page for the latest rate, age rules, and membership requirements before opening. Its appeal is the combination of a recognised kids product and a customer-owned bank, rather than a single headline rate.
6. Suncorp Bank Kids Savings Account
Best for: families who prefer a branch.
Suncorp’s kids account pays a combined 4.30% p.a. variable when bonus conditions are met — a 0.35% p.a. standard rate plus a 3.95% p.a. bonus. To earn the bonus, deposit at least $20 in the month and make no more than one withdrawal. There are no monthly account-keeping, transaction, or coin-handling fees as advertised. It is for under-18s, applications are made in a branch, and Visa debit card eligibility starts from age 11, with merchant category restrictions for ages 11 to 15. These figures come from provider information checked on 2 August 2026, so confirm them on the provider site first.
7. Greater Bank Life Saver
Best for: savers who grow their balance every month.
Life Saver pays 5.25% p.a. variable when the monthly growth condition is met — the closing balance must be higher than the opening balance for the calendar month, excluding interest earned. It charges no monthly account-keeping fee and no everyday transaction fees as advertised. You must be under 25 to open it, and an adult can open it on a child’s behalf. It is a good fit if deposits are regular and withdrawals are rare; if money comes out most months, the top rate will be hard to hold.
8. Spriggy
Best for: teaching pocket-money habits with a card.
Spriggy is different from the rest of this list: it is a money app with a linked prepaid Visa card, not a savings account, so it does not pay interest in the same way. Parents can set spending limits, track chores, and pay pocket money through the app, and kids get a customised prepaid card. It costs $5 per month as a membership fee, with a 7-day free trial, and international purchases attract a 3.5% surcharge. It works best alongside a real savings account — Spriggy for everyday spending lessons, and a savings account for money that is meant to stay saved.
What about tax on kids savings?
Tax rules for children’s interest are worth knowing before the balance grows. For under-16s, if interest is under $120 a year, no tax is withheld. Between $120 and $420 a year, no tax is withheld if the bank has the child’s date of birth or tax file number (TFN); without either, tax is withheld at 47%. At $420 or more a year, a TFN is needed to avoid withholding at 47%. Once a child turns 16, providing a TFN avoids withholding. If tax is withheld and should not have been, it can be claimed back through a tax return. When in doubt, ask the bank what it has on file for the account.
Before you open an account
- Check the current rate, bonus conditions, and balance cap on the provider’s own page — comparison figures go out of date fast.
- Confirm who can operate the account, and what changes at ages 13, 18, or 25.
- Read the fees schedule and the Target Market Determination if one is published.
- Make sure the money in the account genuinely belongs to the child, and keep your own savings separate.
- Set a simple routine: a regular deposit, no withdrawals unless there is a real reason, and a quick check each month to see the bonus interest land.
Frequently asked questions
Can a child open a savings account on their own?
It depends on age and the bank. In general, a parent or guardian opens the account for younger children, while older teens can often apply in a branch or, at some banks, online from 18. Always check the provider’s age and ID rules first.
What happens when my child turns 18?
Many kids accounts convert automatically — for example, Great Southern’s Youth eSaver becomes a Goal Saver, and Bank Australia’s mySaver runs to age 25 before converting. Check the conversion rule before opening, so a good rate does not quietly turn into an ordinary one.
Is a higher rate always better?
Not if the conditions are hard to meet or the cap is low. An account paying a slightly lower rate with no monthly conditions can beat a higher headline rate that drops to a low base rate whenever a withdrawal is made.
Should I pair a savings account with a pocket-money app?
For many families, yes. A savings account protects money meant for the future, while an app with a prepaid card teaches day-to-day spending limits. Just watch the app’s monthly fee — it should not cost more than the saving habit is worth.
Rates in this guide are variable, can change at any time, and were checked on 4 November 2026. This list was built on clear criteria — rate, bonus conditions, balance caps, fees, and age rules — so it can be refreshed when rates move. Confirm the current terms with the provider before applying.
