One bank wants to give your baby cash
Westpac is giving $200 in a savings account to any Australian baby born in 2017 to celebrate the bank’s 200th anniversary.
What is the $200 Westpac baby account?
A Westpac Bump Savings account is a savings account for Australian permanent resident babies which will be available to open from 8 April 2017. You can register your baby’s interest in opening an account now. You have until 31 May 2018 to present the baby’s birth certificate with their full name to the bank so the account can have a name and owner. Then Westpac will deposit the $200 cash for babies born in 2017, your baby can withdraw that money when they turn 16 years old, but not before.
How to give your kid $19K for their 16th birthday
The Westpac Bump account has no monthly account fees and a current interest rate of 1.5 per cent. Westpac say by building on the $200 deposit with a $20 contribution every week, your child could have $19,054.02 in savings by their sixteenth birthday.
What is the best children’s savings account?
The Westpac Bump account is clearly a great promotion for children’s savings accounts. Westpac expects that 25 per cent of all Australian babies born in 2017 will get a Westpac Bump account. But is it the best account for children? InfoChoice lists 51 savings accounts specially designed for children that are now available from Australian banks and credit unions.
Using the InfoChoice Savings calculator we can compare accounts easily. By entering the same initial $200 deposit and a weekly $20 contribution the calculator shows there are many accounts that will deliver your future teenager a lot more than the Westpac Bump account will by their sixteenth birthday.
For example, the Suncorp Bank Kids Saving Account will deliver a birthday present of $21,206.06.
People’s Choice Credit Union’s Young Saver account will accumulate $20,842.03 in sixteen years.
The Commonwealth Bank’s YouthSaver account will deliver $20,398.23.
You can compare all the savings accounts from all of Australia’s significant banks and credit unions here.