This evening me and my wife were browsing through some of those online saving accounts (currently with INGDirect at 6% and ANZ offers us 6.30%), and spotted this incredible offer from BankWest. Kids’ Bonus Saver, which is like their online TeleNet Saver accounts except for the junior (must be under 15), and it offers 10% interest, if you can deposit $25-$250 regularly without making withdrawal.

As they have claimed — at 10% it’s Australia’s highest children saver account. Quite a few conditions though.

1. Under 15. I guess I don’t qualify this one.
2. $25-$250 deposit a month. No more, no less.
3. Linked with Children’s Saving Account, required.

It has no account keeping fee, and provide fast access to funds for the parents or guardians. It has those limits to ensure it is used for saving for the children (instead of someone else’s high yield saving account). We are thinking of opening one for our daughter first thing next year. Good to start saving earlier.

Do note about the tax implication though. Minors have relatively low tax free bracket at $416 in Australia, and you’ll have to pay 66 cent in a dollar earned up to $1,445 after that. Very hefty I’ll say (to prevent abuse of course). So start saving when they are young, but don’t put all your money into their saving account, unless you love ATO so much.