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There are so many kids’ savings accounts on the market it can be difficult to wade through all the options; the LLL has made a list of some of the top features and the traps to look for when starting your child on their savings journey.

No fees and charges

No one likes fees and charges, bluh, and kids especially do not want their hard-earned money whittled away by fees. For young children who might start saving their pocket money or birthday money won’t be depositing large sums of money, it would be counterproductive for them to have an account that charges a monthly fee, meaning they may actually be making a loss. Look for an account that has no account fees or charges at all.

Great interest rate

On the other side, if your child has entrusted their money in a bank account it is beneficial for them to be earning interest for keeping their money in a savings account. There are plenty of options available, such as, ‘monthly deposit bonus’ and ‘term deposits’ that require you to make a task or lock their money away for a fixed period to earn any bonus interest and ‘at call’ accounts that pay a standard rate of interest irrespective if you make monthly transactions or not.

Online access – fast transfers

Setting a goal with your child is a great way to motivate them to save. Once the child is ready to spend their money on their goal, you may need to access the funds quickly. Look for an account with internet banking and faster payments for transferring payments into an adult’s transaction card quickly.  For older children a banking app may be beneficial to watch their savings grow.


Does your savings account provider have tools and resources available to teach your child about financial literacy? In this increasingly digital age, understanding the value of money is important, check out the Kids’ Vault on the LLL website.

Equally, when looking for a kids’ savings account, keep in mind some lesser-advertised traps that may mean your child’s money is not working to its full potential.

Hidden fees

Read the savings account providers terms and conditions or product disclosure statement for hidden fees. Your child earnt their money and it is best to keep it theirs. Some providers may charge fees to discourage children from spending their own savings, keep an eye out for withdrawal fees.

No bonus hurdles

For savings accounts with bonus interest, how your child earns interest on their money can sometimes be tricky to meet the minimum requirement each month. Starting out with an account that is at call and pays you standard interest might work best for children who deposit funds infrequently.

No credit card

Having a debit card linked to your child’s account is great when the children are old enough and responsible to manage their own money. Just be wary that some financial institutions may be quick to start promoting credit card facilities to your child as soon as they turn 18, this might be an important factor to consider.

With the help and guidance of parents and guardians, children can learn the value of savings, and help foster their sense of self-achievement and worth with the right account.

Find out more about the LLL’s fee free, at call, Children’s Savings Account.

The LLL prides itself on providing savings accounts that are simple to operate, with a variable interest rate and no fees or charges. The LLL has a variety of savings accounts: personal and joint accounts; guardian accounts for children; and business accounts, including for self-managed super funds and not-for-profit organisations.

As an Authorised Deposit-taking Institution (ADI), the LLL is regulated under the Banking Act and by APRA.

This advice is general in nature and does not take into account your personal situation, needs or objectives. Please consider the Disclosure Documents to decide if this product is right for you.

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