There is a robust discussion going on
http://www.ozbargain.com.au/node/39898
for banking.
This prompted me to ask if anyone knows which bank is most suitable for a first account for a student.
No need for credit / debit card as it is for a primary school student
No account keeping fees is a mandatory requirement
Any hidden costs to be on the lookout for?
Will be mostly used for deposits so I guess the higher the interest rate offered the better it is.
http://www.suncorpbank.com.au/personal/savings/kids-savings-…
5.75% if at least $20 per month deposited and no more than 1 withdrawal per month
edit : Has it's own site too…
http://www.suncorpkids.com.au/
have a look at this if your kid qualify - 15 years old or less: http://bankwest.com.au/Personal/Savings_and_Investment/Kids_… 10% interest if depositing between $25-$250 per month with no withdrawals.
Wish I could get that deal. :D
I'm doing promotional work for Commonwealth Bank which caters for the majority of students in Australia. There's no account fees for students and the interest is good. Think there is actually a high interest promotion going atm. Also, when the time comes you can get a savings or debit card online and again, no fees. Google "Commonwealth Bank Student Options" for more detailed info.
the interest is good. Think there is actually a high interest promotion going atm.
hmmm…… top rate of interest is 4.76%
which is not so good
They have a new account type. http://www.commbank.com.au/personal/accounts/goalsaver/defau…
You only need to deposit $200 a month and but you only get one withdrawal. I use this with the NetBank Saver. So most of my money in the GoalSaver to collect the interest and the NetBank Saver just has a few hundred emergency money.
You only need to deposit $200 a month
I'm not sure how many primary school students will have that kind of money to save every month……
besides, the account you've linked to is for over 16's only….
Oops, double posted. And I'm not just promoting because I'm working for them. I'm personally a student and have four different accounts with them and I'm not saying fees for anything. :)
Almost all major banks offer fee-free banking for minors - then you just add on one of those online saving type accounts with a bit more interest and you should be fine.
Just watch out when the kid turns 18 or whatever the limit is - most banks will continue to offer fee waivers for those studying full time, or if he isn't then a lot of them offer fee waivers if you deposit $xx a month (ie. salary).
Of the Big 4, I believe CBA offer a credit card without annual fees for students over 18 which can be handy if the kid can control his spending (big IF), and I think Westpac waive fees until 21. The Big 4 though will suually offer lower interest rates on the online savings accounts than smaller operators on the market.
Big tip - you can quote your child's date of birth or if it's not too difficult (I can't remember applying for a TFN anymore) get your kid a TFN and put the TFN on his bank account. That will also save your kid having to get a TFN later down the track for their own purposes (especially when getting a job down the track).
And if you are going to put a lot of money in there and he is going to be getting some serious interest, then bear this in mind as minors under 18 are taxed at a different rate under some circumstances to prevent income splitting.
http://www.ato.gov.au/individuals/content.asp?doc=/content/2…
Also this can be relevant depending on what the money is used for:
http://www.ato.gov.au/print.asp?doc=/content/11900.htm
There are heaps of bank accounts for students which have no account fees. Usually they don't have high interest rates but you could do what I do, have a student complete freedom acct with banksa plus an online account linked to it where I get good interest rates, but you need to have online banking or phone banking to make deposits into the savings account. At the moment the savings account is at 5.25% interest.