Highest kids savings interest --> bankwest Kids' Bonus Saver

Bankwest kids saver so far has the best interest rate I could find for kidssavings.

Non-taxable as long as it does not earn more than $416p.a.
https://www.ato.gov.au/Individuals/Families/Investing-on-behalf-of-children

BW Kids Bonus saver has maximum of 5.75%p.a. interest / bonus interest (variable)

• earn the Bonus rate each month $25-$250 is deposited and no withdrawals are made
• no account fees
• link to a Bankwest Children’s Savings Account

Link:http://www.bankwest.com.au/personal/savings-term-deposits/savings-accounts-term-deposits/kids-bonus-saver


Catch:
Every year, the entire savings will be transferred to Children’s Savings Account with lower interest rate.

What I suggest is to transfer the savings to another savings account (preferably online savings account as it has higher interest rate). I would suggest to look at Ubank for its high interest rate and flexibility to move in/out the money freely. USaver + Ultra has 4.17% interest rate as of this writing.
https://www.ubank.com.au/savings-accounts

Another option is to automate/schedule transferring at least $50 every month from children savings to Kids Saver account for the entire 12 months.


If you find better interest rates, let me know :-)