The BOQ Fast Track Starter Account gives 4% on balances up to $10k, with any additional funds above $10k earning 2.8%. Only for people aged 14-24.
No account keeping fees
Must deposit $200 per month to get the bonus interest rate.
Unlimited withdrawals.
Note: bonus rate does not apply in the first month.
Compared to ING at 2.8%: you get an an extra $120 per year in interest if you have savings in excess of $10k.
Really, you seem to be very interested and knowledgeable in this area. I am trying to get my 24 year old son involved but he is just not interested.
It's tough, my dad went through the same thing with me. Keep at it, he'll appreciate you trying eventually.
Keep at it! It takes time to sink in. Even with dual major in economics and actuarial, still took me till 25 and graduation to actually FEEL the force and the need to manage it.
Speaking from own experience, my parents taught me well, and so did all my teachers and professors. I read quite a few books in the area, but I just couldn't FEEL the urgency to start saving when at 20. As a spoiled single-child, with small balance and next-to-zero interest, the incentive for savings was way WAY too low.
But it HAS to start from somewhere, and the three things pushed me over to take action and change habits were:
A. Being in a a stable relationship, and HAVE to start planning financially for future as part of a couple. When single, I've been reckless, even homeless before, and I'm all-in type of guy. But it would be very irresponsible to do so when it's not just yourself. If we wish to travel, if we want a big wedding, if we are to have kids and pay for their education, if we want anything fancy at all, I HAVE act fast, I HAVE to earn more, and I HAVE to expand and diversify source of income.
B. A quote: Pay Yourself First from this video, I changed my priority from
1. Spend first, then 2. Save and/or invest what's left over or as much as possible, to 1. Invest first, 2. save second, 3. Spend what's left over.
That's when I've searched and opened multiple high interest savings accounts, each with dedicated savings goal and tracking. Setup dedicated savings bank accounts on your payroll software, so when salary is paid, the $200 goes straight into the savings account without even you even seeing it. Set and forget.
C. Another quote from a book regarding mental strength. It's about totally rethinking what 'fun' is. Looking in the long-term, is buying a $3,000 top-notch computer today more fun? Or is being able to retire at 30s or even 35s (hence save the $3,000 now) more fun?
It doesn't sound that 'fun', or even achievable. But if you list the goal out, in specific amount, and date. Then work out the amount required to earn/save in an excel, and visualise it by graph, it make a big difference. Both clarifies the goal, shows the steps, and ease the anxiety, lol.
My apology for the long reply, hopefully it's helpful to somebody.
TL;DL: Get more responsibility, pay yourself first, define and visualise goals
No apologies required. I for one appreciate the detail, thought and care you put into sharing your experiences and goals. I will show this to my son and hope for the best. I think eventually it will resonate. Thank you jacktator.
When you deposit $25 to $250 per month and make no withdrawals. In any month you don’t meet these conditions, the standard variable interest rate (currently 0.01% p.a.) applies.
Also,
After 12 months
Everything over $1 in the account will be swept into your linked Children's Savings Account, so you can start afresh.
And (for Bank West Kids’ Bonus Saver):
2.5 The maximum opening deposit is $250 and the maximum amount(s) which may be deposited in any calendar month is $250.
Do they still convert to another account one you hit a certain amount?
Only for under 15.
4% p.a. on balances up to $10,000. 2.8% on balances over $10,000
So they penalise you for being good at saving your money?
kids shouldnt have that much money lul
Having over $10,000 it’s likely being used as a savings account. Dollarmites, this and other banking incentives for kids are long term marketing for future services.
2.8 is still better then most kid savings accounts
is still better then
but considerably worse than if your balance is less than $10,000
4% up to 10k is really good
@jv: he BOQ Fast Track Starter Account gives 4% on balances up to $10k, with any additional funds above $10k earning 2.8%.
@jv: “The BOQ Fast Track Starter Account gives 4% on balances up to $10k, with any additional funds above $10k earning 2.8%”
It’s pretty clear.
@GregRust: It is very normal to have x percent up to Y dollars and then Z percent up to A dollars and so on and so fourth… like taxes, you don't pay your top tax bracket on all your income, you pay it just on that bracket's range.
It is very normal to have
It's not normal to get less interest when you deposit more money…
@jv: This is obviously a special deal for people who won't have much money in their accounts. Notice how there aren't saving accounts with 4% yield on them for people with 100's of thousands? That's because it would be unsustainable for the banks. This is great for people with a small amount of money, who want to see a real return on it, in a safe way - See: How percentages work.
THEN over 10k - you actually STILL get a reasonable deal at today's rates.
This is great for people with a small amount of money, who want to see a real return on it, in a safe way - See: How percentages work.
Better off buying shares in the bank.
See: How investments work.
@jv: I think you should see how investments work mate. The brokerage alone would outpace 4% pa at whatever small amount the kid can put in every week. Wholley unrealistic. Not to mention this actually doesnt rule out buying shares, at all, that's something they can still consider all the whilst earning a safe 4% PA.
Also if you bought CBA shares you'd be down, including dividends. Try explaining that to a kid or a young adult who needs to access their capital to pay rent and utilities.
Know when you've been beat - I appreciate your sentiments but they're not appropriate here.
Pretty sure I know, lol
You clearly don't even know elementary maths re brokerage fees and opportunity cost
It's to teach kids about the $10k limit for reportable transactions. If you want to stay under the radar you need to keep your transfers under $10k. This is like a safety net for kids.
This is like a safety net for kids.
Doesn’t apply if they have a TFN
Day2Day Plus transaction account will be opened alongside when you apply. No monthly account fees and no rediATM fees (+ the big 4 + Bankwest, obviously). This is where the monthly deposit goes.
Base rate is only 0.5%, so if you forget about the monthly deposit, you basically get nothing.
Bonus rate only applies in the following month once the monthly deposit conditions are fulfilled in the current month. BoQ doesn't have NPPA yet, so you should apply in the 4th week of the month at the latest before you plan to use it and deposit $200 before the month ends.
Account is not opened immediately, the initial email says they will contact you "within 48 hours".
Account will convert into a Fast Track Saver Account on the holder's 25th birthday. Fast Track Saver Account requires $1k monthly deposit into Day2Day Plus and a flat 2.8% up to $250k.
Using 3% as a current benchmark for more conventional saving accounts, you'll get an extra $8.33 a month ($100 a year) from a $10k deposit. This, combined with the monthly deposit condition, means it won't be worth the hassle for most people, but if you're a teenager/young adult or you're the parent of one and are looking to open a first account for them, this isn't a bad choice.
For balances greater than $10k, Greater Bank's Life Saver offers 3% for under 25s if the balance increases every month.
Not sure why they are restricting to 14yrs as a min, this would be better then most kid savers at moment
Also add to this is Tax on interest for Kids
https://www.ato.gov.au/Individuals/Investing/In-detail/Child…
less than 16 years old and earns between $120 and $420 from savings accounts per year and
- provides either their date of birth or a tax file number (TFN), the financial institution will not withhold tax and they don't need to lodge a tax return
- doesn't provide either their date of birth or TFN, the financial institution will withhold pay as you go (PAYG) tax at 47% and they need to lodge a tax return if they want a refund
Remember.
Honest banks will NEVER.
https://www.marketforces.org.au/info/compare-bank-table/
NEVER use the 'Big 4' banks (or their subsidiaries) for personal accounts and only resort to them for business accounts if one of the smaller banks cannot provide a service you need.
Is this offer for life? If the person turns 25 does it revert to 2.8% or will the higher rate continue?
Says it in a comment above:
Account will convert into a Fast Track Saver Account on the holder's 25th birthday. Fast Track Saver Account requires $1k monthly deposit into Day2Day Plus and a flat 2.8% up to $250k.
I spoke to them and they said the rate continues after 25 years old.
Wait so even the 4% on <=$10k applies if you open it before turning 25?
@Turffe: This is what the person I spoke to said but on reflection I think he was incorrect. He also told me did not need to open a transaction account but the T&C state it is required.
I applied for my son on 20 December the closing screen stated they will contact you "within 48 hours" but nothing. I think hiiamhello is correct that "Account will convert into a Fast Track Saver Account on the holder's 25th birthday. Fast Track Saver Account requires $1k monthly deposit into Day2Day Plus and a flat 2.8% up to $250k".This is still not bad or you can move funds elsewhere.
I just opened a Ubank account a couple of days ago for the 2.8% interest. Time to close it!
You do not need to close it. There is no fee. Just keep it you may need it in the future.Just transfer a few cents in every 6 months. This rate may drop and UBank could be higher. You just never know in this business.
Day2Day Plus transaction account
No NPP, No Osko
No Apple Pay
No Google Pay
No Samsung/Garmin/Fitbit Pay
This is an account for 2008, not 2018.
Is there a calculator or formula to calculate which is better? I’d like to learn to be more savvy on this.
Will turn 25 in 4 months - would they let me drop in $999, then withdrawing once a month 1k, and then add it in again? Currently got 20k in a 2.8% account, would like to see if it’s worth switching when I have double their 10k threshold anyway, for the next 4 months
This is the calculator I use but there are many others.
https://www.bankwest.com.au/personal/savings-calculators/sav…
Regarding this Fast Track Starter account remember that the the Bonus Criteria is met in the prior month. So you need to open the account, link to a BOQ Day2Day Plus Account and deposit $200 first month then the rest of your funds the next. If you do not follow this requirement and then deposit $200 each month you will only receive interest rate of 0.50% for that month only. I suggest once you open the account and meet the conditions you then deposit $10,000. This would be the highest rate available to you so it would be best if you could keep the full amount there until you turn 25, even through it appears that the account allows as many withdrawals as you want. If you were sure you would meet the conditions of this account you could deposit your $20k there as the amount over $10k would earn the same rate as where it is now.y Otherwise I recommend UBank - again you need to meet the conditions in the prior month which are to open USaver and USaver Ultra and deposit $200 per month. Once you turn 25 you should look around at introductory rates eg. Citibank (3.05%) HSBC (3.10%) or MOVE 3.00% ongoing- currently.
Well done on saving a large sum and interest in growing it. (pun intended) Once you open a few of these accounts you will be able to very quickly understand how they work, they are all variations on a theme.
Feel free to ask more questions every one is a noob at the start and it is a strength to ask for help.
More on this account here.
https://www.finder.com.au/boq-fast-track-starter-account
Been on 6% for ages, not much in there either (less than $5000). Avoid
6%, can you elaborate a little?
yeah this makes no sense, where are you earning 6% on deposits. Even long dated term deposits don't offer that much.
Thanks OP, Bankwest dropped their interest rates on their Saver product and closed the branches near me, so I'll take the worse mobile app for the extra interest!
warning boq are really deceptive! I was getting 0.5% for 3 months on my 20k savings and called them up to wonder why. The lady on the other side didnt even know why - and it turns out you need to deposit the $200 a month into the transaction account NOT the savings account which is what I was doing. It literally does not say this anywhere and they refused to pay back my interest when I demanded it. Such a shady way for people to make the same mistake I did and let BOQ pay out less interest.
Quotes from the page linked by the OP above and stated by Bank of Queensland and in several descriptions of the Fast Track Starter Account:
Ongoing Bonus Interest. Earn Bonus Interest by depositing $200 a month (like your pay) to your linked Day2Day Plus Account
and this
Bonus Interest rate … Applies when $200 is deposited to your linked Day2Day Plus Account, in the prior month
and this
No matter how much you have in your savings (up to $250,000), you can earn Bonus Interest to boost your balance. Earn ongoing bonus interest by making regular deposits into your linked Day2Day Account.
Every description of the account includes the statement that you need to deposit to the Day2Day (transaction) account. I have the Fast Track Saver Account (over 25 years old version - $1000) and opened one for my son and knew this was the requirement.
I do commend you on investing your funds to get maximum interest. You will learn that you have to read the fine print very carefully. I recommend you also open Grater Bank Life Saver, an account for under 25s that is 3.00% currently. You can only open it when under 25 but then can continue to use it after that and receive that interest rate, according to them. I opened one for my son, be warned they are very bureaucratic.
Good deal! Too bad just turned 25. Haha