Five tips for helping children learn the savings habit: Mozo
The comparison site Mozo.com.au has reviewed how the big banks compare when it comes to setting up savings accounts for children to learn the savings habit.
The CommBank Youth Saver account pays 3.45% as long as your child makes at least one deposit and no withdrawals for the month.
An added bonus is that primary school students can bank at school if their school is part of CommBank’s school banking program.
The ANZ waives transaction fees on its Progress Saver (kids) account and pays 3.41% if your child deposits at least $10 and makes no withdrawals each month.
The Westpac Reward Saver for under 12s pays 3.4% interest with a deposit in any account and no withdrawals are made each month. Kids can deposit money in branch and online.
"NAB no longer offers kids only accounts," Mozo's Kirsty Lamont lamented.
"You can open a regular savings account in your kid’s name instead."
Suncorp’s Kids savings account offering 4% interest and Bankmecu’s mySaver account, Hume Bank’s Clancy Koala Junior Saver, Wide Bay’s Ziggy Kids Saver which all offer 3.75% in interest, currently ranked as the best accounts.
Mozo.com.au's Kirsty Lamont had five general tips about opening a kids savings account on the familycapers website.
- Decide if the account is for you or them
- Open the best account for their needs
- Explain how a bank account works
- Draw up a savings plan
- Reward good savings / money habits
"Sit down with your child and ask them what they want in the short and longer term and draw up a savings plan to achieve each of those goals," Lamont said.
"It will be much more motivating for them to save if it’s for the latest toy gadget or a trip to the Gold Coast’s theme parks."