It’s never too early to start educating your kids about the importance of money! Financial concepts like savings, investment, interest, and credit may be too complex for their young minds, but opening a personal bank account can help them learn from experience. Giving them the responsibility of managing their ‘money’ is a great opportunity to know the true value of money.
You may be curious to know about how children’s bank accounts work. Can the parent access their kid's money? Can they monitor how their kids spend the money? Are there any banks that really offer designated bank accounts for kids? Know more about the best bank accounts for children in New Zealand, and how you can get one for your kids. Read on to learn more.
Several banks offer specialised bank accounts for kids. Some of the major ones are ANZ, BNZ, ASB, Westpac, and TSB. There are also plenty of smaller and rural banks that offer bank accounts for kids.
Depending on the bank’s terms and conditions, the kid may receive an EFTPOS or debit card. Internet and mobile banking also work just the same, even if it’s a kid’s bank account. However, parents need to teach their kids not to share these banking details, as it may compromise the money in their account.
Ultimately, it depends on the bank. Generally, these documents are needed to open a bank account for your child.
1. IDs (Birth certificate, passport, etc.)
2. Proof of Address (Home’s power bill, internet bill, passport, etc.)
3. IRD Number (To tax the money in the account correctly )
Some banks may require you to fill out an online form before visiting the bank. Other banks may also require an appointment before physically visiting the bank. It’s best to consult the bank of your choice for more specific details.
It depends on the terms and conditions of the bank account. Parents, kids, and banks can generally have four options. These are:
If the child is the sole owner of the account, the parent can’t access the money in their child’s account. As this means the account is under your child’s name, it means that the kid is also the owner of the account.
If the parent and the kid are joint account holders, the parent can access the money in their children’s account. The kid also needs their parent’s approval before withdrawing money from the account. As this means both the parent and the kid are the owners of the account, they’re both the owners of the account.
If the parents are signatories in the account, they can access their money in the kids’ account. Similarly, their kid needs their permission before the withdrawal. Since they’re only signatories, they don’t own the money in the account, but they still have relative control over how the account is managed and operated.
If the account is opened under the kid’s name but with the premise of ownership transfer once they turn legal age, the parent can access the money in the account. As long as they’re still a minor, the kid needs prior permission before withdrawing money from the account. However, the kid has the choice to remove you as the signatory and solely operate the account once they turn legal age.
There's no one best bank account for kids as everyone has different needs. What works for you as a parent and child may not be what's best for other families. The bank account that fits your kids' needs may also not be on this list. It's always best to compare their pros and cons, as well as get professional advice from financial experts.
|Bank account||Card||Parental access||Account balance interest||Minimum age||Mobile app|
|The Co-operative Bank||Youth Account||EFTPOS for 7y/o+||Yes||2% up to $4,000; 0.25% on every dollar after $4,000||None||iOS and Android|
|Heartland Bank||Direct Call Savings Account||None||None||0.75% on any balance||None||iOS and Android|
|Westpac||Youth Account||EFTPOS for 12y/o+; Debit cards for 16y/o+||Full control for 0-12y/o; Partial control for 12-15y/o; Optional control for 16y/0+||0.05% on the base rate, with a 0.45% bonus rate on the month's last business day||None||iOS and Android|
|BNZ||You Money for Kids||FlexiDebit card for 13y/o+||None||0% credit interest||None||iOS and Android|
|TSB||Youth Account||EFTPOS for 7y/o+||Full control for 0-7y/o; Partial control for 7y/o+||0.25%||None||iOS and Android|
|ANZ||Serious Saver Account||EFTPOS for 7-12y/o; EFTPOS and Visa Debit card for 13-18y/o||Full control for 0-7y/o; Partial control for 7y/o+||0.05%||None||iOS and Android|
|Kiwibank||First Saver||EFTPOS for 10-14y/o; Visa Debit card for 15y/o+||Only for withdrawing money||0.25% for any balance||None||iOS and Android|
|ASB||Headstart Kids' Bank Account||EFTPOS for 13y/o+||Only for moving & withdrawing money||0.15% for any balance||None||iOS and Android|
|Rabobank||PremiumSaver Children's||EFTPOS for 13y/o+||Yes||0.15% for up to $5,000,000||None||iOS and Android|
Every bank in New Zealand offers specific inclusions, benefits, and access levels in their bank account offerings for kids. Ultimately, it’s up to your agreement as a parent and child on which bank account to get. However, it’s generally recommended to choose from these ten best bank accounts in NZ for children.
The Co-operative Bank has a long history of helping Kiwis of all ages with their financial needs. Their Co-operative Bank Youth Account has one of the most competitive interest rates of 2% for a balance up to $4,000. It’s one of the best currently available in New Zealand.
Heartland Bank has been serving Kiwis for more than 140 years. They’re 100% Kiwi-owned and operated, meaning a truly local experience for you. Heartland Bank Direct Call Savings Account is one of the best ones in NZ as it pays above-market interest on savings.
Westpac has been servicing Kiwis since 1817. Westpac Youth Account is crowned as one of the top bank accounts with the best parental access options. It’s a popular choice among concerned parents because they can easily co-manage the money with their kids.
Bank of New Zealand — more commonly known as BNZ — is one of the pioneers when it comes to banking in New Zealand. It integrates technology with financial literacy, so children and parents can easily engage and manage their money with just a few simple clicks.
TSB is one of the oldest local banks in New Zealand, with over 165 years of experience. They’re an award-winning bank, with Consumer NZ People’s Choice Award for Banking on their roster. They have free fees with a fully transactional account for kids age 7 and older.
Australia and New Zealand Bank — commonly known as ANZ — is one of the largest finance companies in the country. ANZ Serious Saver Account aims to help children learn more about saving, managing, and growing their money over time.
Kiwibank may be a young company, but they’ve already made New Zealanders’ lives better with their banking options. Kiwibank First Saver is perfect for kids because they can’t impulsively withdraw money. They always need prior approval from their parents!
ASB is dedicated to helping Kiwis of all ages in their financial goals and aspirations. Since founding in 1847, they’ve developed a wide range of banking services, including a bank account for kids! ASB Headstart Kids’ Bank Account aims to teach children about interest, savings, and fees through interactive tools and innovation.
Rabobank provides banking services for New Zealanders in rural communities. Rabobank PremiumSaver Children’s are great for rural Kiwi kids to get started in their financial journey of managing and growing their money.\
While it’s not exactly a bank, you can start your children’s financial journey through KiwiSaver! You can either enrol your kid separately or get covered for a scheme under your name. Bear in mind that you have to make the contributions and pay fees under the scheme, as there’s no employer to shoulder the costs. The great thing is, KiwiSaver is for a lifetime, meaning that your kid can use the money in the account for a very long time!
A great KiwiSaver can educate them about savings, government contributions, investment, interest, and more! Get a KiwiSaver scheme that matches you and your kids' needs, and be wise with how you manage your money.
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