Can anyone recommend me a bank/credit union account which will earn good interest? My DS1's account has crept up to several thousand dollars and it's not earning much just sitting in a normal savings account. I am yet to open one for DS2.
Preferably the accounts could have a monthly amount deposited in and we don't need to access the $$ so could have a 12 month minimum term (or whatever banks offer these days).
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10-01-2012 15:10 #1
Term deposit bank accounts for kids.
10-01-2012 15:16 #2
We have a St. George savings account for DD. providing there is at least one deposit each month, she earns about 5.2% (was 6 something but decreased with interest rate cuts).
If there is no monthly deposit it's something tiny like .75%.
**** I can spell, honestly! It's my iPhone's fault ****
10-01-2012 15:23 #3
I can't go past ING Direct for term deposit accounts. I pay no fees and have it set up so the amount goes in straight from my nominated savings account.
10-01-2012 15:28 #4Senior Member
- Join Date
- Nov 2008
Our kids all have the Bankwest kids savers. I don't think there is a minimum deposit but there is a minimum of $250 a month I think.
10-01-2012 17:02 #5
I read somewhere that there was no good bank account for kids due to the tax they will be charged when they can access it. This put us off having one for ds2, we invested the money in properties instead which will be left to them anyway.
12-01-2012 12:11 #6
Thanks for the info. I've checked out all suggestions... What a mine field! Seems like there isn't really anything that good for kids, I guess to stop their parents funneling all their cash away and avoiding tax! Kimberleygal - I wish I had enough money for investment properties but sadly that's not gonna happen unless I win Tatts...
12-01-2012 18:06 #7
Yeah, I personally wouldn't go for anything 'specifically' set up for kids, as they can tax and fritter away to nothing if you don't keep a specific balance and deposit etc. I would be more inclined to find a good term deposit and earn interest that way, and they way it's harder to get money out and spend it too.
12-01-2012 18:25 #8Senior Member
- Join Date
- Oct 2010
I have an nab isaver account for each boy. The accounts are in my name. I open a new account every 4 months to take advantage of bonus interest for new accounts.
When we looked into it we concluded that this is what was best for us, and when we have a mortgage again we would put the money on that or an offset account, and keep a track of who's money is where; there by making more interest, by saving more interest paid to bank iykwim.
12-01-2012 19:09 #9
13-01-2012 12:01 #10
But you have to pay tax on profit with ING account, I had it for my girl with them but ATO asked me to pay tax and if the account for a child and you do not want to be taxed on the interest earned profit I was advised that I need to open a trust accound for my child. Never did it though...
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