Can I open an account for my baby before they’re born?

No – opening a bank account for a baby in Australia requires you to show their birth certificate if the account is to be in their name jointly with yours. If you are already known to the lending institution you approach, you’ll only need your child’s birth certificate and one form of photo ID for yourself. However, if you do not already have an account with that particular bank or building society, you’ll have to show 100 points of ID before opening a new account, just as you would if you were opening an adult bank account .

Can relatives make deposits into my baby’s bank account?

If you open a savings or transaction account for your baby, you’ll be able to supply your relatives with the BSB and account number and they’ll be able to pay pocket and birthday money directly into your baby’s account. As your child grows, they’ll be able to monitor their nest egg as interest is added each month.

What happens to baby bank accounts when the child turns 18?

Most bank accounts for kids are only operable until they turn 18. Before their 18th birthday arrives, a bank, building society or credit union will contact the account holders and ask where they would like the funds to be transferred to, which would normally be an adult account. At this point, it’s a good idea to talk to your bank about the best type of account to have to meet the growing needs of a young adult.

Are building societies and credit unions just as safe as banks if I’m thinking of opening an account for my baby?

Yes – banks, building societies and credit unions are all known as ‘authorised deposit-taking institutions’ (ADIs), which means they’re regulated by the Australian Prudential Regulation Authority (APRA), which is accountable to parliament. If an ADI financial institution were to fail, account holders are protected by a guarantee from the Australian Government of up to $250,000 per account holder, whether in one or more accounts.

What sort of parental controls are available to safeguard my child’s money?

Parental controls vary according to which bank or building society you choose to open an account with. Some accounts allow a parent to be notified each time a withdrawal happens from their child’s account, or even to approve each withdrawal. Others offer daily, weekly or monthly withdrawal limits. Another useful safety feature is the ability to immediately lock a child’s account if the linked debit card becomes lost. These features can all become useful as your child grows and begins to actively participate in their own banking.