Opening a bank account for your child is one of the simplest money moves a parent can make — and you can do it at any age, even for a newborn. The exact steps depend on your child’s age: younger kids need a parent to open the account in a branch, while teenagers can often apply online themselves. This guide walks you through the whole process, the documents to bring, and the tax trap to avoid.
For the tax rules on children’s accounts, the ATO’s page on children’s savings accounts is the official source worth reading before you apply.
What You Need Before You Start
Gather these before you go to the bank or start an online application — having them ready saves a second trip.
- Your photo ID. A driver’s licence or passport for the parent or guardian opening the account.
- Your child’s birth certificate. This proves both your child’s identity and that you are their parent or guardian. A passport or Medicare card can also work, depending on the bank.
- Your residential address. The bank will ask for proof of address if you are not already a customer.
- Your child’s Tax File Number (TFN), if they have one. There is no minimum age for a TFN, and giving it to the bank stops tax being withheld from interest. More on this below.
- An opening deposit. Most kids’ accounts need little or nothing to open — often $0 to $10 — but check before you go.
How to Open a Bank Account for a Child
Follow these steps in order and the whole thing usually takes under an hour.
Step 1: Decide what kind of account your child needs
For younger children, a savings account is the right start — it earns interest and teaches them to save. For older kids and teenagers who need to spend, an everyday (transaction) account with a debit card makes more sense. If you are still deciding, our guide to the best kids savings accounts compares the strongest options.
Step 2: Compare a few accounts
Do not just pick your own bank out of habit. Look at the monthly fee (many kids’ accounts have none), the interest rate and any conditions on the bonus rate, the minimum age, and whether the account comes with a card or app access. A high headline rate is no good if your child cannot meet the deposit conditions to earn it.
Step 3: Check the age rules
Age rules vary a little between banks, but the pattern is the same everywhere. If your child is under 12, you will open the account for them and stay on it as a signatory. From around 12 to 14, most banks let a child open an account in their own name or jointly with a parent, and from 14 they can usually apply online themselves. Check the exact age with your bank before you apply — it is the most common reason applications stall.
Step 4: Apply in a branch or online
For children under 14, most banks still want a branch visit with a parent or guardian present. Bring the documents from the checklist above. For teenagers, the online application takes about 10 minutes, and the account can be opened on the spot if electronic ID checks pass.
Step 5: Give the bank your child’s TFN or date of birth
This is the step people skip, and it can cost real money. If the bank does not have your child’s TFN, it may withhold tax from the interest at 47%. Hand over the TFN when you open the account, or at least the child’s date of birth, which is enough for smaller balances.
Step 6: Set up the account and make the first deposit
Once the account is open, transfer in the first deposit, set up any linked app access, and agree with your child on simple rules — for example, birthday money goes in, and they check the balance with you once a month. The habit matters more than the amount.
Age Rules: What Changes as Your Child Gets Older
Here is how it generally works across the big banks:
- Under 12: A parent or guardian opens the account and runs it as a signatory. The child cannot transact on their own. At NAB, for example, a parent must be linked as an authorised person until the child turns 11.
- Ages 12 to 13: The child can often open an account in their own name or jointly with a parent, as long as they can sign consistently. A debit card may need a branch visit with a parent present.
- Ages 14 to 17: Most banks let teenagers apply online themselves with two forms of ID, and they can usually get a debit card and app access. Parents can still be added as an authorised person if the family wants that.
- Age 18: The account converts to a standard adult account, and any parental controls or signatory arrangements fall away.
These ages are a guide, not a rule — each bank sets its own cut-offs, so confirm them on the bank’s own site before you apply.
Savings Account or Everyday Account?
Most families end up with both, but start with the one your child actually needs. A savings account is for money that stays put — birthday cash, pocket money being saved for something big — and it earns interest. An everyday account is for money that moves: lunch money, a first part-time wage, tap-and-go spending. If you are weighing the two, read our kids savings vs transaction account comparison, which explains the trade-offs in plain terms.
The TFN Trap: Don’t Let the Bank Withhold 47%
This is the detail that catches the most parents out. Under ATO rules for children under 16, the bank will not withhold tax while the account earns less than $120 of interest a year. Between $120 and $420 a year, no tax is withheld as long as the bank has your child’s date of birth or TFN. But once interest reaches $420 a year without a TFN on file, the bank must withhold tax at 47% — and the only way to get it back is to lodge a tax return for your child.
Two things worth knowing:
- There is no minimum age for a TFN. Even a baby can have one. Apply through the ATO and give the number to the bank when you open the account.
- The first $416 of a child’s investment income is tax-free in a financial year. After that, penalty rates apply — 66% on the amount between $417 and $1,307, and 45% on the whole amount above $1,307. In practice, most kids’ accounts earn well under $416 a year in interest, so tax is rarely owed — but only if the TFN is on file.
How to Pick the Right Account
Five things decide whether a kids’ account is worth opening:
- Fees. The best kids’ accounts charge no monthly fee. If there is a fee, it should be waived for under-18s.
- Interest rate — and the conditions. Some accounts advertise a high bonus rate that only applies if your child deposits a set amount each month. Check whether that is realistic for them.
- Minimum age. Some accounts only open from a certain age, and some only allow a debit card from 13 or 14.
- Card and app access. Older kids benefit from their own card and app, so they learn to check a balance and track spending. Younger kids do not need it yet.
- Your own bank vs a better deal elsewhere. Keeping everything at one bank is convenient, but a different bank may pay far more interest. Compare first.
Common Mistakes to Avoid
- Not giving the bank a TFN. The 47% withholding trap above — sort it on day one.
- Putting your own money in and calling it your child’s. The ATO looks at who really owns and controls the money, not whose name is on the account. If you fund the account and spend it, the interest is your income to declare.
- Choosing on the headline rate alone. A 5% bonus rate means nothing if your child cannot meet the monthly deposit condition to earn it.
- Forgetting the account exists. Review it once a year: check the rate is still competitive, the card still suits your child’s age, and the balance is actually growing.
- Opening a joint account without thinking it through. If the account is jointly held with a parent aged 16 or over, the special under-16 interest thresholds do not apply.
Frequently Asked Questions
Can I open a bank account for a newborn?
Yes. There is no minimum age — you can open an account from the moment your child is born. You will open it as the parent or guardian and operate it until they are old enough to take over.
Does my child need a TFN to open an account?
No, a TFN is not required to open the account. But without one, the bank may withhold 47% of the interest once it reaches $420 a year (for children under 16). Getting a TFN is free and there is no minimum age, so it is worth doing early.
Can my child get a debit card?
Usually from around age 11 to 14, depending on the bank. At some banks, 11- to 13-year-olds can get a card but need a branch visit with a parent to order it; from 14 they can often apply online themselves.
Can grandparents open an account for a grandchild?
Generally, only a parent or legal guardian can open the account, because the bank needs proof of the relationship — usually the child’s birth certificate. Grandparents can still contribute money once the account is open.
What happens to the account when my child turns 18?
It converts to a standard adult account. Any parental signatory or authorised-person arrangement ends, fees and interest rates change to adult terms, and your child takes full control.
The Bottom Line
Opening a bank account for a child is straightforward: pick a savings account for younger kids or an everyday account for teenagers, bring your ID and your child’s birth certificate, and — most importantly — give the bank your child’s TFN or date of birth so no tax is withheld from the interest. Set it up once, check it once a year, and let the habit of saving build from there.
