Are children's bank accounts cheaper than their adult equivalent?

Yes – they tend to be fee-free and offer higher interest rates than some adult bank accounts . Banks encourage children to open accounts because prevailing research shows a large proportion of adults remain with the same bank they were introduced to as a child. However, be aware that some of the best bank accounts for children do have a limit on the bonus interest rate offered. For example, if the account reaches $5,000, the interest rate can revert to a lower rate in some cases.

Should I still give my children pocket money in cash?

There is no right answer to this question, as it depends on the age of the child and how much pocket money they receive. Very young children may enjoy the experience of being handed shiny coins and putting them into a piggy bank. As a child grows older, it may be fun for them to physically take their piggybank savings to a bank to deposit into their savings account, which they can then monitor and watch grow through an online or mobile phone app.

At what age can my child open a bank account in their name?

At the age of 12 a child can legally open an Australian bank account in their sole name, although some of the big banks require a child to be aged 13 or even 14 before they open an account in their name only. Parents are able to open a joint account with their child from birth to 11 years of age. To open a bank account for a child in Australia, you’ll need the child’s birth certificate and one form of photo ID for yourself, such as a driver’s licence. Some financial institutions offer bank accounts for teens that offer a great interest rate and which they can hold even when they’re a young adult, with some having age limits of 21 or even 25 in some cases.

If my child loses their bank debit card, how much will it cost to replace?

This will depend on which bank, building society or credit union you choose for your child’s first bank account. Some financial institutions offer one free card replacement per year, whilst others charge for card replacements at around $10 per card. Both VISA and Mastercard offer the option to change your debit card colour, although a fee of either $10 or $20 is charged for the privilege.

Does my child have to be with me to open a joint bank account in Australia?

No, you won’t have to take your children out of school when you’re opening bank accounts for them. Many financial institutions allow you to open a joint account with your child online, as long as you’re able to provide your child’s birth certificate and suitable photo ID for yourself.

Are the best bank accounts for children in Australia transaction accounts or savings accounts?

This depends on what your child needs a bank account for and how it will be used. Many bank accounts for youth are ‘hybrid’ accounts which allow many of the functions of a transaction account (such as the ability to pay into and out of the account by EFT, ATM access and online banking) - but they award interest like a savings account. Other banks offer distinctly separate transaction and savings accounts, with the ability to set up automatic transfers from the linked transaction account to a savings account when a set savings limit is reached.