Children's savings account

bluedufflecoat on 08/05/2015 - 14:41
Last edited 08/05/2015 - 14:43

Hello all,
Just wondering if anyone could recommend a children's bank account, especially now that interest rates are at an all-time low… CUA had the best no fuss account, at 5% but apparently it is for kids over 10 years old. Currently have a Westpac esaver account… Low minimum monthly deposit, but just wondering what else is there… Not sure if I can be bothered changing accounts after a year, if I went with BankWest.

Thanks.

Ps. Initial deposit is about $2500 and $500 respectively for 2 kids…

Financial

Comments

  • akd on 08/05/2015 - 15:27

    Try
    * Suncorp Kids Savings Account 3.75% interest (including bonus interest).Suncorp does not have online banking.
    or
    * Bankwest Kids Saver Account with 5.5% interest (including bonus interest). Bankwest allows max of $250 per month and money moves to transaction account after a year.

    • bluedufflecoat on 08/05/2015 - 15:36

      What stops people from moving money back into the kids saver account?

      • rickb on 08/05/2015 - 16:10

        I think a child under 16 needs to lodge a tax return if total interest exceeds $420.

      • akd on 08/05/2015 - 16:21

        We can only deposit max $250 per month in kids saver account. For Example- depositing $250 per month for 12 months = $3000. Bankwest will move $3000 into transaction account at the start of new year of the account. You can only move back $250 into Kids Saver account from transaction account. Also any money deposited on top of $250 goes into transaction account.
        Not the best, but one of the option.

        • bluedufflecoat on 08/05/2015 - 16:30
          +1

          Hmmm… That's interesting… Just annoying that we'd have to revisit this within a year… So move $250 every month back from the standard account?

      • megamilinda on 08/05/2015 - 16:41

        I have one for my daughter, and you can't physically put more than $250 in the Kids Bonus account, and if you withdraw at all you get no bonus interest. After a year, the whole amount goes into the regular kids account and you start all over again.

        I set it up on a direct debit from my account so I don't forget the make the monthly deposit.

        Also applied for a TFN for her so no tax to pay on the interest, you can get a TFN at any age but you need to go to the ATO shop front/office.

        • megamilinda on 08/05/2015 - 16:44

          Oh, and if you provide the bank with your own TFN, it will come up as interest in your name and you may need to prove that it's not actually your income.

  • imissbeans on 08/05/2015 - 16:14

    Anyone know of another way to invest for a child given the high tax rates for minors?

    Other income
    Tax rates
    $0 – $416 - Nil
    $417 – $1,307 - Nil + 66% of the excess over $416
    Over $1,307 - 45% of the total amount of income that is not excepted income

    • bluedufflecoat on 08/05/2015 - 16:19

      Assuming, $2500@5%, it's still a lot less than $200, so I wouldn't need to worry about this at this point.

      • imissbeans on 08/05/2015 - 16:22

        You're right! I would want to think about how to invest after earning over $417 a year.

    • modsec802 on 08/05/2015 - 23:33

      You just have to put it in your own name or your partners, whomever earns less.

  • spackbace on 08/05/2015 - 18:35

    Commonwealth is 3% sigh but I dont see any montly limits
    https://www.commbank.com.au/personal/accounts/savings-accoun…

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