Hi,
My daughter has around $3,000 from gifts (from overseas relatives over several years) that I want to put into either a children's saver account or short term deposit for when she is older (e.g., go towards purchasing first car, or overseas holiday).
Has anyone done research already in this area that they are happy to share?
Looking for a good return that is secure, so no peer-to-peer lending.
Many thanks.
What do you mean reset? What happen in January. ?
After 12 months all but $1 from the bonus account is put back into the basic account that pays 1% for amounts under $3000. So you start again each year with a max of $251 in the account and the. Can deposit $25-$250 into it again per month.
Effectively you can get the bonus interest on $3,000 for six months plus plus another 0.5% for the time it is in the base account.
Which bank? Commonwealth bank dollarmites account
Done some research.
Bankwest one appears to give 5.25% interest but limited to $250 starting deposit, and monthly deposit limits of $25-250. So I can put $2,750 into the base account earning 1%, and then move $250 a month into the bonus interest account. Over a twelve month period, I am earning around 2.6% on the bonus account (as I can only put in $250 a month), and around .5% on the base account (the $3,000 spends about 6 months in each account effectively) for around 3.1%.
The Dollarmite account is for under 12s, my daughter is 12 so doesn't qualify. They do have a Youthsaver though that offers 2.8% with monthly deposits and no withdrawals.
Bankwest offer a 6 month term deposit with 3.05%. If there is no minimum age restriction, sounds like that might be the best option as no need to set up monthly deposits?
Consider a combination of products to get the best result. Half the money in a 6 month term deposit, the other half paying into the bankwest saver, then when the term deposit matures use it to do the second half of the year's deposits for Bankwest. That would add a little bit. Repeat again next year.
Bank west have a child account superior to all others. Just check the rules as it needs a regular deposit and no withdrawals, and you need to start the cycle over each January.