Banks mean on kids’ accounts

Some banks are ripping off children by offering accounts which pay miniscule interest as well as charging fees, the Australian Consumers' Association says. The ACA surveyed accounts specifically designed for children and found some pay just one-hundredth of a percent interest. In many cases parents would do better to set up adult and online accounts for their children, the ACA says. The worst performers were Queensland Teachers Credit Union's Junior Savers Club, paying 0.01 per cent interest for up to $1,999 and Credit Union Australia's Children's Savings Account which pays 0.05 per annum. The best children's accounts included Australian Central Credit Union's Future Saver Account, paying 3.05 per cent interest a year, Commonwealth Bank's Youthsaver Account with 2.61 per cent interest, and Savings and Loans Credit Union's Treasure Chest.