25 children’s savings accounts have base rates better than Commonwealth Bank

MEDIA RELEASE 30 September 2019

PLENTY OF SCHOOL SAVERS OUTPERFORM COMMBANK

ASIC’s announcement of a review into the school banking sector is already attracting attention onto the Commonwealth Bank’s Youth Saver account and Dollarmites school banking program.

Commonwealth Bank’s Youth Saver account is currently paying a maximum interest rate of 2.10 per cent pa (base rate 0.15 per cent pa) when at least one deposit and no withdrawals are made in a month.

25 savings accounts for children (currently listed on InfoChoice’s database of 145 institutions) have base rates above 0.15 per cent.

8 accounts have maximum bonus interest rates over the Commonwealth Bank’s 2.10 per cent pa.

“Many banks and credit unions simply don’t bother with offering children’s savings accounts because of the dominance of the Commonwealth Bank in this market,” said Vadim Taube, CEO of leading Australian financial comparison site InfoChoice.com.au.

“But there is choice for parents and kids in children’s savings accounts. There are plenty of other accounts that are great for kids.

“For example, Suncorp’s Kids Saving Account pays 2.05 per cent pa maximum rate when you deposit $20 or more and make no more than one withdrawal per month.

“And the base rate is 1.0 per cent on this account so that is reasonable as well.

“Westpac’s Bump account also has a good base rate of 1.10 per cent pa and a maximum rate of 1.95 per cent with just a requirement that the balance grows during the month to get the bonus rate,” said Vadim Taube.

46 per cent of Australians open their first account with Commonwealth Bank and 34 per cent of Aussies still have their first account according to research by consumer lobby group Choice in 2017.

For more information on Savings account rates, data and commentary, please contact:

Jason Bryce, Media Manager on 0428 777 727 jason.bryce@infochoice.com.au

For more comments, please contact: Vadim Taube, Chief Executive on 0403 580 794

Keep up to date with the latest RBA rates outlook at InfoChoice.

* Well Home Loans, comparison rate 2.96%, 2 year fixed, OO P&I.  InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

** Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan

***Excludes accounts with introductory honeymoon maximum bonus rates, notice saver accounts and accounts that are not generally available to all Australian residents

InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on credit cards, home loans, savings accounts, term deposits, personal loans and car loans for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today.

At InfoChoice, we strive to be:

•           Comprehensive. We compare more than 3500 individual products from 145 providers within Australia to offer you the best value.

•           Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.

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