• long running

Kids Bonus Saver: 5.55% p.a. Interest on Balance up to $5,555 (Min $5/Month Deposit & No Withdraws Required) @ First Option Bank


Never heard of this bank but it's protected by the government deposit guarantee scheme of $250k

For under-18's.

Deposit at least $5 and no withdrawals per month to get 5.55% interest rate otherwise it's only 0.05%

Looks pretty good to me but not really shopped around so keen to hear thoughts.

From the website:

A dedicated high-interest savings account exclusively for under-18 members, designed to help kids save up for something they want.

Deposit a minimum of $5 per month (pocket money!) without making a withdrawal and you will earn 5.55% p.a. interest on balances up to $5,555.

5.55% p.a. is the total of the base interest rate (0.05% p.a.) plus the bonus interest rate (5.50% p.a.).

Kids' Bonus Saver accounts can have their own PayID so parents (and grandparents!) can directly contribute to kids' savings via an email address or a mobile phone number, without needing an account number and BSB.

There's no Visa debit card attached to our Kids' Bonus Saver accounts in order to encourage good saving habits.

A linked 'everyday' account with a Visa debit card (digital and plastic) can be included in kids' memberships.

Kids Bonus Saver accounts can be linked to parents' internet banking so they have visibility over the savings, and spendings. Alerts can also be set up (email or SMS) for real-time notifications of deposits and withdrawals.

No minimum initial deposit
Variable interest rates
Bonus interest tiered structure optimised for $0 - $5,555 balances
Bonus interest conditions – minimum deposit of $5 per month and no withdrawals, otherwise only the base interest is earned: 0.05% per annum.
Internet banking and Mobile Banking App access

Related Stores

First Option Bank
First Option Bank


  • How do they verify the kid?

    • Scroll down on link…

      Once you submit an account request, our team will provisionally create a First Option membership. You will be able to deposit money into the new account straight away, however a full under-18 membership application process will need to be completed, via our secure messaging service. This process will require you to provide formal identification for the child and parent/guardian in order to comply with Australian banking industry requirements.

  • +1

    most of the kids accounts are cap at around $5k. are there any higher than that?
    looking for accounts for kids under 12.

    • +2

      CommBank is up to $50,000 and 18 years old. It’s 5% interest.

    • +1

      @cumova, Over $8k at 5% and they've earned too much interest. ($416)
      So what are you doing for your kid's tax? Do the kids have a TFN, pay Withholding Tax, or you just kind of forget about them come June 30? 😉

      • or you just kind of forget about them come June 30? 😉

        I don't think this is possible, surely the bank are reporting this income to the ATO associated to your TFN, exactly as they do with the interest on your own accounts ? Otherwise people would easily be able to offload their income into their kids accounts.

  • Isn't the government guarantee only for institutions that provide you with financial advice?

  • How about the interest tax ? Get a TFN for kids?

    • How about the interest tax?


      If you provide the money and spend it as you like, you must include the interest in your tax return.

      Children are not exempt from quoting a TFN. If the savings account earns more than $120 p.a. and a child doesn't provide the date of birth and/or TFN, the financial institution will withhold pay as you go (PAYG) tax at 47% and a tax return must be lodged for a tax refund.

      Get a TFN for kids?


      Children can apply for a tax file number (TFN) themselves once they turn 13. You can apply for a TFN for your child at any age.

      • It's $416 (if you give their details)… Which we've claimed every year since they were born!

        But yes, we're at that point, working out whether it's better just to claim the money under our own names, or have them paying for a tax return each year.

        • They apply 47% withholding tax from $120. From $420 onwards supplying a birthday is insufficient to avoid the tax.

          If your child is:

          • any age and they earn less than $120 per year from savings accounts per year, their financial institution will not withhold tax

          • less than 16 years old and earns between $120 and $420 from savings accounts per year and provides either their date of birth or a tax file number (TFN), the financial institution will not withhold tax and they don't need to lodge a tax return | doesn't provide either their date of birth or TFN, the financial institution will withhold pay as you go (PAYG) tax at 47% and they need to lodge a tax return if they want a refund

          • 16 or 17 years old, earns $120 or more from their savings account per year and provides their TFN, the financial institution will not withhold tax | doesn't provide their TFN, the financial institution will withhold PAYG tax at 47% and they need to lodge a tax return if they want a refund.

          • @alvian:

            doesn't provide either their date of birth

            Can you even open a kids account without providing the date of birth ? Suncorp require a birth certificate, not sure if every bank does this.

            • @Nom: Just quoting what is written on ATO's website. I don't know the children's bank account requirements for each bank. Please direct your question to the ATO and the banks.

  • +1

    Here is how I save for my kids. I put the the money they get as gifts from grandparents, etc, into a mortgage offset. I calculate the interest they earn and it is all in a spreadsheet. I don't have to worry about having yet another account and I don't need to worry about the tax issues. They get a generous rate of: mortgage interest rate + 0.5%.

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