Money reveals the Best Children's Savings Accounts for 2021
Of all the savings account categories, it's the children's savers that have the highest interest rates.
Greater Bank jumps ahead of last year's winners with its Life Saver account, offering a simple flat base rate and maximum rate for its young customers. It also provides them with more time to enjoy the high rates as the age requirement is capped at "under 25", as opposed to other children's savings accounts that are for customers aged 18 and under. Greater Bank won Money's Customer-owned Institution of the Year in 2020.
Bank of Queensland wins the major bank award this year, with a high maximum rate of 2.5% and nearly double what's on offer, on average.
Chris Screen, BOQ's chief product officer, says the Fast Track Starter account is designed to help young customers set up positive savings habits right from the start.
"Fast Track Starter rewards young Australians with a high interest rate on balances up to $10,000 and an ongoing competitive rate on balances between $10,000 and $250,000, when they do their everyday banking with BOQ," says Screen.
Meanwhile, CUA offered the highest interest rates this year with its Youth eSaver account in the non-bank category.
"We're very aware that they are our future members and house savers so I think having a product that we can offer them while they're quite young that actually gives them a good return is really very important," said Barbara O'Conor Nash, head of products at CUA.
The average age of a Youth eSaver member is 10, and the average age at which an account is opened is nine.
All our winners boast financial literacy tools on their website as an incentive to help educate their young customers on the value of saving money early and doing a budget for their pocket money.