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  1. #1
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    Default Best savings account for kiddies?

    As the title says just wondering what savings account/bank/ people use to save for their children's future?

    I'm wanting to put away for my sons high schooling and for his future in general and I'm thinking the current savings account I've got going isn't doing much for me.

    I've heard of some people having a term deposit for their children but I don't know much about that... are they the best way to go to save?

    What is your savings account (bank and what kind of account) and how much interest do you get?

    All suggestions welcome

  2. #2
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    We have set up share-based insurance bonds for our kids. They move with the stockmarket and we put in money each month. Obviously the returns haven't been great in the last couple of years, but they should improve in the next few years.

    The advantage of them is that if you keep your funds in there for 10 years then you can remove the money tax free. There are a couple of rules, though, including that each year you can only put in 125% of what you put in the year before, otherwise you lose the tax free time that you've had the money in there for already.

    So, to be worth it you need to know you'll be keeping the money in there for at least 10 years. Perfect for starting a fund at birth or soon after for their high school years. That's our plan

  3. #3
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    Wow okay - that sounds very savvy!

    Way too smart for me - I'm a bit uneducated in these matters I must admit!

  4. #4
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    Quote Originally Posted by gizmo View Post
    We have set up share-based insurance bonds for our kids. They move with the stockmarket and we put in money each month. Obviously the returns haven't been great in the last couple of years, but they should improve in the next few years.

    The advantage of them is that if you keep your funds in there for 10 years then you can remove the money tax free. There are a couple of rules, though, including that each year you can only put in 125% of what you put in the year before, otherwise you lose the tax free time that you've had the money in there for already.

    So, to be worth it you need to know you'll be keeping the money in there for at least 10 years. Perfect for starting a fund at birth or soon after for their high school years. That's our plan
    Is there a minimum startup amount? We've got savings accounts for the girls and they are earning tens of dollars worth of bonus interest lol but it has built up now and we feel we should do something "more" with it.

  5. #5
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    I would assume that each company is different.

    With mine you need $500 to start if you also put in place a regular savings plan, or $2000 if you don't.

    If you do a savings plan, you need to put in a minimum of $100 per month.

    If you want to do a one off lump sum there's a minimum of $500.

  6. #6
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    Default Best savings account for kiddies?

    Quote Originally Posted by gizmo View Post
    We have set up share-based insurance bonds for our kids. They move with the stockmarket and we put in money each month. Obviously the returns haven't been great in the last couple of years, but they should improve in the next few years.

    The advantage of them is that if you keep your funds in there for 10 years then you can remove the money tax free. There are a couple of rules, though, including that each year you can only put in 125% of what you put in the year before, otherwise you lose the tax free time that you've had the money in there for already.

    So, to be worth it you need to know you'll be keeping the money in there for at least 10 years. Perfect for starting a fund at birth or soon after for their high school years. That's our plan
    Great idea - I'm going to look into doing the same! Thanks

  7. #7
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    I think they're great for saving up for kids education - just make sure that you've read the rules and fine print first so you don't accidentally lose the tax free status

  8. #8
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    Default Re: Best savings account for kiddies?

    Quote Originally Posted by gizmo View Post
    I think they're great for saving up for kids education - just make sure that you've read the rules and fine print first so you don't accidentally lose the tax free status
    Oh, is there a tax free status? That's good to know... I'll have to check that out !

    Sent from my HTC One X using BubHub

  9. #9
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    If you keep the money in there for 10 years

  10. The Following User Says Thank You to gizmo For This Useful Post:

    veggiemama  (09-02-2013)

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    There is a product with Bank West called a 'Kids Bonus Saver'. It pays 8% when you make certain contributions on a monthly basis. You can find out more details here - http://www.bankwest.com.au/personal/...ds-bonus-saver
    And BTW I am not a bank west staff member, we are a financial advice firm which is independent of any major financial organisation that works with young families and have come across this product in our conversations with clients.


 

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