Whether you're setting up a bank account to teach your child about managing money, or gathering savings for their education (or liberation), you'll want to get the best interest rates and conditions on your child's financial future.
Features of kids' savings accounts
Your child's bank account should come without any monthly or maintenance fees, but you'll also be looking at several other features:
- Special interest for regular contributions (this is often conditional on limited withdrawals)
- Deposit limits: Some kids' savers cap your monthly deposit (eg, at $250); so if you're hoping to build up a college fund with occasional large deposits, you'll need to watch out for this
- Facilities such as online banking, telephone banking, EFTPOS, ATM withdrawals and direct debit may all be limited for kids under 12. Make sure any account has all the features you need (but not those that could lead to trouble).