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Bankwest Kid Saver Account - 7% Interest Rate

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Bankwest Kid Saver Account - 7% Interest Rate
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dragonrabit on 13/02/2010 - 01:47 bankwest.com.au (390 clicks)
Last edited 13/02/2010 - 03:26

Ok guys, I just want to share my experience for hunting the best kid saver account on the market.

I believe Bankwest Kid saver account currently offer the highest interest rate - 7%.

The issue with this product is after 1 year, the money will be transfer to another account that paying peanut only 1-2% only.

I just done my research. And I find out there are 3 options on the market that might suit you.

  1. Westpac Kid Saver account - 5.45% (included bonus 1.55% for 4 months only), this promotional rate for accounts opened between 10 February 2010 and 8 March 2010. The true rate after promotion is 3.9%
    http://www.westpac.com.au/personal-banking/bank-accounts/You…

  2. Kids Savings Account - 4.75 %
    http://www.suncorp.com.au/Suncorp/personal/savings_accounts/…

  3. ANZ Progress Saver account for those under 18 years - 3.71%
    http://www.anz.com/australia/persbnk/prdsrv/savings/kidsProg…

So the plan is open bank west kid saver account, after 1 year, transfer the money from Bankwest Children's Savings Account to one of the account above.

And remember to get bonus interest on one of the three above accounts, you still need make regular deposit once a month. Each products has different condition. Let said just put additional $20/month and no withdrawal, otherwise u won't get the bonus interest.

REMEMBER this is for your kid account not for your daily transaction account / regular saving account.

Fashion & Apparel Higher Interest Kid Saver Account

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closed Comments

  • juzdownunder on 13/02/2010 - 07:01
    -1

    Hi, why does it need to be a "kid" account? Is it because they generally have no fees? You could try UBank's 6 month term deposit, currently paying 6.26% for a 6-month TD, with no fees, and no requirement for regular deposits. You can't take any money out in that 6 months, but why would you with a kids account anyway?
    http://www.ubank.com.au

    • dragonrabit on 13/02/2010 - 15:16

      tax related mate. thats why i am talking this is for kid saving account. for your kid future education or something else.

    • anthony on 17/02/2010 - 12:00
      -1

      To start off with 6.26% is less than 7%

      Secondly a term deposit only pays simply interest whereas a deposit account pays compound interest

      It is not 6.26% over 6 months, it is 6.26%p.a
      Over the 6 months you will receive 3.08% on your money

      • dragonrabit on 12/03/2010 - 23:36

        sorry anthony, who told you term deposit is compound interest? i was working with the bank. i never heard this term deposit compound interest. show me which bank use compound interest please? i might need update my knowledge. thanks in advance

        • anthony on 13/03/2010 - 00:08

          who told you term deposit is compound interest?

          To quote myself "a term deposit only pays simply interest"

          • dragonrabit on 13/03/2010 - 03:02

            @anthony: apologized my mistake reading your post incorrectly.

            but for the bank calculate your online saving account / your term deposit / your home loan or any other loan / deposit.

            the rule are the same
            term deposit & loan = ((the principal * interest rate)/ 365) * d(number of days on that month)

            for online saving/daily transaction account = ((the principal * interest rate)/ 365) * d (number of days your balance stay the same)
            example in feb has 28 days,and you make deposit $1k/week, and you have opening balance 1k therefore d will be = 7
            (((1k* interest rate)/365)7) + (((2k interest rate)/365)7) + (((3k interest rate)/365)7) + (((4k interest rate)/365)*7)

            • anthony on 13/03/2010 - 17:21
              -1

              @dragonrabit:

              the rule are the same

              No they are not.

              Interest on a term deposit is calculated daily however paid at maturity (This is simple interest). The interest rate they advertise is the effective annual rate.
              A term deposit paying 6% p.a will only give you a return of 6% p.a if after the initial 6 months you can re invest in another term deposit paying 6% p.a

              A 6 month term deposit of $1000 @ 6% p.a will give you $30 interest at the end of the 6 months.

              Interest on a savings account/loan is calculated daily and paid monthly, this is monthly compound interest.

              A 6 month regular deposit (or loan taken) of $1000 @ 6% p.a calculated daily and paid monthly will give you $30.77 interest at the end of the 6 months.

              What ever your formula is it is useless at aclculating compound inteerest, there are much much better ways of doing it.

              If you worked for a bank then you would know that a term deposit pays interest on maturity which is nothing like a deposit/loan

  • Trance N Dance on 13/02/2010 - 07:29

    with that ubank term deposit, it's 6 months not allowed withdrawrals and is protected by the govenment's guarantee for deposits below $1mil

    bah the bankwest is only for those under 15, man i need to change my bank account…. anz used to be 5% bonus interest

    i also dont get the wespac one it says under 12 at the top but in the "things to know" section it says not available if ur under 12

    • dragonrabit on 13/02/2010 - 16:12

      mate, i am talking kids account. not regular account

  • mikafamily on 13/02/2010 - 09:02
    +1

    I just opened my daughter up an account at Rural Bank ( a joint venture between Bendigo-Adelaide Bank and Elders) It's online only but suits our needs.

    Ineterst rate - RBonline Savings Account 5.10%

    No fees

    FYI

    cheers

    PS I think Ubank prohibit bank accounts for people under 18 although my wife says I am sometimes wrong

    • dragonrabit on 13/02/2010 - 16:54

      is it ur daughter above 18yrs old?

  • 67Gateway on 13/02/2010 - 09:30
    +1

    I guess the only reason you open a kids account is there is no tax on the interest.

    I am a big fan of Bankwest Kids Bonus Saver, but not so impressed with the Children's account.

    • dragonrabit on 13/02/2010 - 16:52

      so u know u have another option to move that money to other kids account with other bank

  • flyingtrapeze on 13/02/2010 - 09:30

    don't mean to hijack the thread.

    check out the extra $50 moneyback that various St George (fee free) products have from moneybackco.
    1) $50 for just opening a direct saver account with no minimum balance or fees.
    2) term deposits also get the $50.

    assuming you already have moneybackco account and you have paid your $35 yearly fee, check with moneybackco for terms and conditions
    $50 is 5% interest with $1000 invested for 12 mths

    • dragonrabit on 13/02/2010 - 16:13

      yeah, but i am talking kids account mate.

    • WaywardOne on 13/02/2010 - 17:08

      Thanks!

  • mikafamily on 13/02/2010 - 09:38

    Wahyusanto - re interest.
    You need to quote the date of birth of the child to be exempt from tax UNTIL you earn over a certain amount in interest then you do need to lodge a return. The ATO web site has all the details

    cheers

    • 67Gateway on 13/02/2010 - 09:42

      yes, I know.
      I think a child can earn about 3000 in interest before the tax is imposed.

      In my case, I think it will take at least 10 years before my kid can earn that much interest :) Even at 7% interest rate…
      I will worry about that then :)

  • mikafamily on 13/02/2010 - 09:49

    and I quote……………………

    Interest

    If a child quotes their date of birth, they are entitled to a threshold of $420 per income year on interest. If they don’t quote their date of birth, the threshold is the same as the adult threshold of $120 per income year.

    Where the total interest earned during an income year is $420 or more

    if the child quotes a TFN, the investment body will not withhold pay as you go (PAYG) tax, and
    if the child does not quote a TFN, the investment body will withhold PAYG tax at 46.5%.
    This applies to the total interest earned (not just the amount above $420, or the payment period threshold equivalent).

    If the child has had PAYG tax deducted, they will need to lodge a return to claim these amounts back from the Tax Office. A child who does not have a TFN will need to get one before they can lodge a return.

    Unquote…..

    Cheers

    • Trance N Dance on 13/02/2010 - 10:27

      ah great…. looks like i need to get myself a TFN

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