What is a kids bank account?

Kids grow up fast, but wouldn’t it be great if they also grew up financially smart? That’s where a kids bank account comes in.

Whether your little one is just starting to understand the value of money or is already saving up for their first bike, a kids account can be a great way to teach real-life money skills in a fun and practical way.

In this guide, we’ll break down exactly what a kids bank account is, how it works, why it’s useful, and how to set one up.

No complex finance talk here, just clear and helpful info to make you feel confident as a parent, carer, or cool aunt or uncle.

What is a kids bank account?

A kids bank account is just what it sounds like, a bank account designed specifically for children.

It gives them a safe place to store their money, watch it grow, and start learning about saving, spending, and budgeting.

Most kids accounts are joint accounts between the child and a parent or guardian.

That means you, as the adult, still have control and oversight, but the child gets their own card, login, and experience.

There are usually two types:

• Savings accounts – Focused on teaching kids to save with interest.
• Transaction accounts – Everyday spending accounts with a debit card.

Some banks offer both options as part of a “youth banking” package.

Why should kids have a bank account?

Opening a bank account for your child isn’t just about convenience, it’s about setting them up for life. Financial education starts young, and a hands-on experience is worth more than any classroom lesson.

Benefits include:

• Learning the value of money
• Practicing saving habits
• Understanding how interest works
• Tracking spending through statements or apps
• Feeling a sense of independence and responsibility

Plus, many kids accounts offer no fees, bonus interest, or cool app features that turn money management into something fun.

What’s the right age to open an account?

There’s no exact rule, but many banks allow parents to open an account for a child as soon as they’re born.

That said, most kids start understanding the concept of money around age 5 to 7, which is a great time to start introducing them to their own account.

As they get older (especially around 12 or 13), banks often upgrade the account to allow more features, like a Visa debit card, mobile app access, or even their own online banking login.

If your child is a teen and ready for more independence, you might want to check out youth debit cards or prepaid cards. Want to compare features by age group? Check out MoneySmart’s guide for teaching kids about money.

What features should you look for?

Not all kids accounts are created equal. Some banks go the extra mile with features that make saving fun, while others are just basic accounts with limited access.

Here’s what to look for:

• No monthly fees – You don’t want fees eating up your child’s hard-earned savings.
• High interest rates – Some banks offer bonus interest if savings goals are met.
• Parental controls – Ability to set spending limits, freeze cards, or view transactions.
• App access – Look for apps that are easy for kids to use and understand.
• Goal tracking – Some apps let kids set savings goals and track their progress visually.

Some of the best-rated options in Australia include CommBank Youthsaver, Bendigo PiggySaver, and ING Orange Everyday Youth.

How to open a kids bank account

The process is usually simple and can often be done online or at your local branch. You’ll typically need:

For the child:

• Birth certificate or passport
• Medicare card

For the parent/guardian:

• Valid photo ID (like a driver’s license or passport)
• Your tax file number (optional but useful for interest reporting)

Some banks may also ask for proof of address or guardianship documents, especially if opening an account for a child who isn’t yours.

Once the account is open, you’ll usually get:

• An account number
• A BSB (Bank State Branch code)
• A debit card (if the child is eligible)
• Login access to internet or mobile banking

How much should you deposit?

There’s no magic number—but even small deposits can make a big difference.

Here are a few fun ideas to help your child grow their account:

• Pocket money transfers instead of cash
• Birthday or holiday money from family
• Savings challenges, like “save $1 for every year of your age”
• Match their savings—for every dollar they save, you add one too!

The key is consistency. Encourage regular deposits, even if it’s just a few a week.

Make money lessons part of everyday life

A bank account alone won’t turn your kid into a financial genius—but when paired with regular conversations about money, it can do wonders.

Try these everyday tips:

• Let them pay at the checkout using their card.
• Show them how to check their balance in the app.
• Set mini-goals (like saving $10 for a toy).
• Talk about needs vs. wants while shopping.
• Celebrate small savings milestones.

The more comfortable they get with managing their own money, the more confident they’ll be as they grow up.

What about teens?

As your child gets older, their banking needs will evolve. Teen accounts usually come with more freedom—and more responsibility.

Features for teen accounts:

• Visa debit card
• Apple Pay or Google Pay access
• No account fees
• Direct deposit options for part-time jobs
• Real-time transaction tracking
• Budgeting tools or savings goals

By age 14 to 15, most teens are ready to manage their own accounts with minimal supervision. Still, many banks allow parents to maintain viewing rights or set alerts for certain transactions.

This is a great time to introduce basic budgeting and talk about things like saving for a phone, clothes, outings, or future travel.

Safety and security

Parents often worry about fraud or kids overspending—but banks have built-in features to protect young account holders.

Most kids accounts include:

• Card lock/freeze options
• Spending limits
• Transaction alerts via app or text
• No overdrafts, so kids can’t spend more than they have
• Customer support for resolving any issues quickly

Always encourage your child not to share their PIN, even with friends, and teach them to keep their card and phone secure.

Quick recap

• A kids bank account teaches saving, spending, and responsibility
• Open an account as early as you like—but around age 6–7 is ideal for learning
• Look for no fees, high interest, and parental controls
• Use apps and games to make money management fun
• Talk about money often and lead by example

Final thoughts

A kids bank account is so much more than just a place to stash coins and birthday Money, it’s a tool for teaching lifelong money habits.

The earlier you introduce financial literacy in a practical way, the more confident and capable your child will be in managing their money as they grow.

Whether they’re 5 or 15, there’s an account out there that fits their needs. From savings-only options for little ones to full-featured debit accounts for teens, these tools empower kids to learn, earn, save, and spend wisely.

So go ahead, open that account, start those money chats, and watch your child build financial confidence, one coin at a time.